What is the vacation time payout policy?

The vacation time payout policy outlines the guidelines and procedures for employees to request a payout of vacation time, in lieu of using it for paid time off. Community Partners encourages all employees to take time off to rest and recharge. This policy applies to all core and project employees of Community Partners.

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Policy

Eligibility & Conditions

Vacation Time Usage
Community Partners strongly encourages employees to use their accrued vacation time to rest, recharge, and maintain a healthy work-life balance. Taking time off allows you to manage the demands of work and return refreshed.

However, in certain situations—such as financial or economic hardship—employees may request a payout in lieu of taking vacation time. These requests will be considered under the conditions outlined below.

Vacation Time Accrual & Rollover
Employees accrue vacation time according to the guidelines in the employee handbook, with a maximum rollover limit. For detailed information on how vacation time accrues and the maximum carryover limit, please review the vacation accrual and rollover policies in the employee handbook (which can be found in Paylocity).

Eligibility for Vacation Time Payout
Employees must meet the following criteria to be eligible for a vacation time payout:

1. Minimum Accrual: Employees must have at least 40 hours of accrued vacation time to be eligible for a payout request.

2. Maximum Payout: Requests can be made for up to 60% of the accrued but unused vacation time. For example, if an employee has 100 hours of unused vacation, they may request a payout for up to 60 hours.

3. Notification: Employees must notify the HR team in writing, providing a reason for the request.

4. Approval Process: Vacation time payout requests will be reviewed and considered on a case-by-case basis.  Approval is required from the CFO, with input from the employee’s Project Leader, if applicable.

5. Financial Considerations: The HR team will work with the Client Services team to determine if granting a payout will create a financial hardship for Community Partners or the employee’s respective project.

Frequency of Requests
Employees may only request a vacation time payout once per calendar year. This ensures that the policy is used appropriately and encourages employees to take regular breaks.

Payout Timing
Once approved, the vacation payout will be processed and paid to the employee no earlier than their next regularly scheduled pay date. The payout will appear in a separate paycheck and will be subject to applicable taxes.

Policy Amendments
This policy can be amended or discontinued at the discretion of Community Partners, with or without notice.

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Key Reminders:

• We Encourage Time Off: We encourage all employees to take the vacation time they have accrued. Taking time away from work is critical for mental health, productivity, and long-term well-being. If you feel like you need a break, please plan ahead and submit your time off request according to our guidelines.

• Vacation Accrual & Rollover: Make sure you are familiar with the accrual and rollover policies for vacation time, as outlined in the employee handbook. It’s important to plan your time off accordingly so that you don’t lose any unused vacation days.

• Payouts are Exceptions: Vacation time payouts are meant to be an exceptional option for financial hardship. It’s preferable to use your vacation time to recharge, ensuring you remain at your best for both your health and work performance.

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If you have any questions or need assistance with your vacation time accrual, rollover, or payout request, please reach out to the HR Team.