Vacation and sick accruals: What’s your payout?

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Question: “I am interested in knowing how other firms handle vacation and sick accruals, and if accrued sick leave hours are paid out at termination.” — Peggy

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Our sick and vacation hours are combined and accrued in a bank we call ETO (earned time off). The average full time employee accrues 10.15 hours per two-week pay period. First year employees accrue a little less; those with 10 years or more accrue a bit more. Whatever's left at termination is paid out.

At our company, sick time (PTO) is 10 days per calendar year max. At termination, only accrued vacation is paid out. Also, if an employee were to leave at the end of June, for example, but had already taken 10 days of PTO that year, the 5 days not accrued could be deducted from the accrued vacation.

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