While vacation time is a mainstay of basic, employers are not legally required to offer paid vacation to employees. But if you do offer vacation time, don't be afraid to set limits on when employees can take it. You're free to set your own policy.
Best bet: Match your policy to the special needs of your business based on the industry and the market you serve.
For example, if yours is a seasonal business, say, a landscaping contractor that brings in the bulk of its annual sales during the summer months, you can reflect that in your vacation policy. You can, for instance, offer workers two weeks vacation a year, but require them to schedule it during nonpeak months when business is slow.
Most businesses base the number of annual vacation days on employees' tenure or seniority.
Final note: Expect employees to request a few extra vacation days this year. Reason: Nearly half the workers polled in a new OfficeTeam survey said the biggest mistake they made with their last vacation was taking too little time off.