Whether you have an all-purpose paid time off policy or separate policies pertaining to vacation, sick, or personal time, it’s important to have defined procedures for managing time off requests.
Consider the guidelines below:

• 1. Define eligibility.
  Within your time off policy, communicate exactly who is eligible for time off benefits. Most employers offer paid time off to regular part-time and full-time employees, with the amount of time dependent upon hours worked and length of service.
   
• 2. Criteria affecting decisions.
  There may be times when scheduling conflicts will prevent you from being able to grant every time off request. To better manage this process, establish how far in advance time-off requests must be submitted, on what basis requests will be considered, and any restrictions on how many people can be off at once.
   
• 3.  Require notice.
  Require time off requests in advance and in writing. This will allow you to plan the schedule accordingly.
   
• 4. Maintin records.
  

  An employee’s personnel file should includerecords of employee time off requests and the amount of time taken. Employers may also choose to include time off balances on pay stubs.

• 5. Use an accrual system.
  It’s recommended that employees earn time off on a per payroll period basis in order to prevent the employee from using all their time early in the year or right before putting in their resignation.
   
• 6. Carry over.
  

  State law will dictate whether or not you can restrict employees from carrying over unused time into the next year. Employers are urged to check their state requirements and seek legal counsel before implementing any carry-over restrictions.

• 7. Encourage time off.
  The main purpose of any time off program is to allow employees time to relax and recharge. Therefore, it’s important to encourage employees to take time off throughout the year.

When managed appropriately, paid time off can provide employers the benefit of a relaxed and energized workforce. For expert advice regarding administering time off, consult with your attorney and/or accountant for their professional opinions.

Note:  The information provided above by ADP is not intended to render legal or accounting advice.  If legal, accounting, or other professional assistance is required, the services of an attorney or certified public accountant should be sought.

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