Can we force forfeiture of vacation days?

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in Compensation and Benefits,Human Resources

Q. Under our company policy, an employee who fails to give 20 working days’ notice before resigning forfeits any earned vacation days. Is this policy lawful?

A. Yes, under Pennsylvania law. There is no legal entitlement to vacation pay, and an employee is entitled only to the vacation pay that the employer decides to provide under its policy.

If the policy is clear in stating that failure to give 20 days’ notice results in forfeiture of vacation days, it should be enforceable.

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