What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community.

Vacation pay

Vacation pay is a benefit typically provided by an employer to its employees.

Expanded Definition

Several systems are used. In some, an employee earns a number of vacation days based on years of service usually on the first day of the calendar year, which the employee may take off work with the approval of his supervisor. Other systems pay the employees for vacation days and then allow him to take time off unpaid during the year.

Some employers allow employees to accumulate unused vacation days and carrry them over to the next year. Some will allow employees to sell back unused vacation time. Sometimes you can use the cash from unused vacation to pay for additional benefits such as health insurance premiums.

Related Fool Articles

Related Terms

Related Fool Discussion Boards

Post your questions on Motley Fool's "Ask the Headhunter" board. [[1]]

Recent Mentions on Fool.com