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Protected by the copyright laws of the United States & Canada and by International treaties. IT IS
ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER
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HOLIDAY / VACATION POLICY

The following sample company policy statements are for holiday leave. Generally, holidays are paid leave
with no loss of credit for the employee’s length of service with the company. The policy below mentions
Floating Holidays, which are a couple of days you designate each year just to give your employees a little
more time off. If you don’t want to offer Floating Holidays, you should remove the reference. If you want
your policy to differ in other ways from the policy set out below, you should change this policy to reflect
those differences. If you make substantive changes to this policy, however, you should have your attorney
look over the changes. A list of holidays typically provided by employers is also included.

1. ANNUAL HOLIDAYS
[COMPANY NAME] observes the following holidays:

 New Year's Day

 Memorial Day
 Independence Day
 Labor Day
 Thanksgiving Day
 Friday after Thanksgiving
 Christmas Eve
 Christmas Day
 Floating Holiday
 Personal Holiday

2. PAID HOLIDAYS
All full-time employees will receive holiday pay of eight straight time hours at their regular rate, provided
the following conditions are satisfied:

1. Work a full shift on the employee's last scheduled work shift prior to the paid holiday.

2. Work a full shift on the employee's first scheduled work shift following the holiday.

3. Should the employee be unable to work either of these two days because of illness, proof of
illness will be required in order to qualify for the paid holiday.

The shift differential for second and third shift employees will not be included in holiday pay.

Holiday pay will not be paid if:

1. The employee has been on the payroll for less than [NUMBER] days.
2. The employee is on lay-off status.
3. The employee is a temporary or seasonal employee.
4. The employee is on leave of absence when the holiday occurs.
5. The employee is requested to work during a paid holiday and the employee refuse to do so.

Employees who are requested to work during a paid holiday will receive holiday pay plus regular pay.

3. PAID HOLIDAYS DURING VACATIONS AND WEEKENDS

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If a holiday occurs during the employee's vacation, the employee's vacation will be extended by the
number of holidays falling during the vacation period or an equal number of vacation days will be carried
forward for future use.

If any scheduled paid holiday falls on a Saturday, the holiday will usually be observed on the preceding
Friday. If the holiday falls on a Sunday, the following Monday will usually be observed as the holiday.

4. OVERTIME
Holidays are not considered a day worked for purposes of calculating overtime unless work is actually
performed.

[THE FLOATING HOLIDAY CLAUSE BELOW MAY BE REMOVED IF IT DOES NOT APPLY TO YOUR
CIRCUMSTANCES.]

5. FLOATING HOLIDAYS
In addition to the named holidays for which eligible employees will receive paid time off, [COMPANY] will
schedule two floating holidays each year. Floating holidays will be scheduled so as to provide eligible
employees with extended weekends by combining them with named holidays.

At the beginning of each calendar year, the employee will receive a complete schedule of paid holidays,
including paid floating holidays.

[THE PERSONAL HOLIDAYS CLAUSE BELOW MAY BE REMOVED IF IT DOES NOT APPLY TO YOUR
CIRCUMSTANCES.]

6. PERSONAL HOLIDAYS
In addition to scheduled paid holidays, eligible employees are given two floating holidays annually to be
used as personal time off. Before scheduling a personal holiday, the employee must obtain approval.
Requests for personal holidays must be made in writing not less than [NUMBER] days in advance of the
requested date.

7. RELIGIOUS HOLIDAYS
[COMPANY] recognizes that there may be religious holidays (other than those already designated at
holidays) that employees would like to observe. It may be possible to arrange these holidays as
scheduled days off, authorized absences without pay or personal time off. Requests for time off to
observe religious holidays must be approved.

8.
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ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER
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9. VACATION TIME
At the end of the employee's first year as a full-time employee of [COMPANY], an employee is entitled to
[number] days of paid vacation. The employee's vacation days increase to [number] days after five years
of continuous employment with [COMPANY], [NUMBER] days after [NUMBER] years of continuous
employment with [COMPANY], and [NUMBER] days after [NUMBER] years of continuous employment
with [COMPANY].

Vacation time may be taken in increments of one full day but in all cases must be prescheduled and pre-
approved. One day of vacation for every five days that an employee is entitled to may be carried over to
the following year, but must be used before [DATE].

[COMPANY] does not provide paid vacation time for part-time employees.

10. VACATION PAY

Vacation pay is the employee's regular rate of pay, excluding overtime or holiday premiums. If the
employee's regular rate of pay varies from week to week, the employee's vacation pay will equal the
employee's average weekly hours or scheduled hours in the previous calendar quarter not to exceed
[NUMBER] hours.

Pay will not be granted in lieu of vacation time not taken.

11. SCHEDULING VACATIONS

[COMPANY] will attempt to grant all employees vacation at the time they desire to take it. However,
[COMPANY] must maintain adequate staffing at all times. Therefore, vacations must be scheduled in
advance and with prior written approval.

Where conflicts develop, they will be resolved as fairly as possible. Preference will be given to the more
senior employee, the employee who can demonstrate the greater need for vacation at the conflicting time
or the employee who makes the earliest request.

[THE PLANTWIDE SHUTDOWN CLAUSE BELOW MAY BE REMOVED IF IT DOES NOT APPLY TO
YOUR CIRCUMSTANCES.]

12. PLANTWIDE SHUTDOWN

It is [COMPANY] practice to have an annual shutdown of [PERIOD OF TIME] during the month of
[MONTH]. All employees, with the exception of essential personnel, will take their normal vacations at this
time. For those employees who are entitled to more than 10 days of vacation, the balance of that vacation
must be scheduled. Employees who have been employed for less than one year receive paid vacation in
the amount accrued as of the annual plant shutdown, providing they have completed six months of
service at [COMPANY].

13.
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ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER
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14. HOLIDAY OR ILLNESS DURING VACATION

When a holiday occurs during the employee's vacation time, the employee will still receive pay for the
holiday in addition to the employee's vacation pay or the employee may select another day off.

If the employee is hospitalized while on vacation, the time from the date of the employee's hospitalization
until the employee's doctor releases the employee may, at the employee's option, be charged against the
employee's short term disability benefits, rather than the employee's vacation time. If this happens, the
employee must notify [COMPANY]. If the employee becomes ill while on vacation, but the employee is not
hospitalized, the employee's absence is charged against vacation time.

15. TERMINATION AND VACATION PAY

When employment ends for any reason, vacation time earned but not taken by the employee will be
included in the employee's final paycheck. At the same time, vacation time taken in advance will be
deducted from the final paycheck.

16. VACATION ACCRUAL METHODS

The following is a sample vacation accrual chart. You can modify your vacation accruals to reflect
additional credit for any factor you feel deserve additional vacation as long as you are nondiscriminatory.
If you make substantive changes to this policy, you should have your attorney look over the changes.

Employees who have completed one year of service and who work a [NUMBER]-day, [NUMBER]-hour
week, are entitled to vacation as follows:

Service Vacation
6 months [NUMBER] week
1 year [NUMBER] weeks
2 years [NUMBER] weeks, [NUMBER] days
3 years [NUMBER] weeks, [NUMBER] days
4 years [NUMBER] weeks, [NUMBER] days
5 years [NUMBER] weeks, [NUMBER] days
6-10 years [NUMBER] weeks
11 years [NUMBER] weeks, [NUMBER] days
12 years [NUMBER] weeks, [NUMBER] days
13 years [NUMBER] weeks, [NUMBER] days
14 years [NUMBER] weeks, [NUMBER] days
15-24 years [NUMBER] weeks
25 or more years [NUMBER] weeks

Vacation must be taken during the calendar year at times convenient to you and your supervisor.

[OR USE THE WAY TO CALCULATE ACCRUAL]

1-5 years of service: an employee earns [NUMBER] day per month up to a
maximum of [NUMBER] day per year.

6-15 years of service: an employee earns [NUMBER]days per month up to a

maximum of [NUMBER] days per year.

16-25 years of service: an employee earns [NUMBER] days per month up to a

maximum of [NUMBER] days per year.

26 or more years of service: an employee earns [NUMBER] days per month up to a

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maximum of [NUMBER] days per year.

17. VACATION ACCRUAL FOR NEW EMPLOYEES
Vacation accrual based on years of service do not address new employees who are hired after the
beginning of the year. Vacation to new employees during the year of hire is as schedule of vacation days
based on month of hire.

The schedule could be set up as follows:

Month of Employment Vacation Days

January [NUMBER] days

February [NUMBER] days
March [NUMBER] days
April [NUMBER] days
May [NUMBER] days
June [NUMBER] days
July [NUMBER] days
August [NUMBER] day
September-December [NUMBER] days

18. PART-TIME ACCRUAL

Part-time employees may be eligible for vacation accrual on a pro-rata basis based upon their regular
workweek.

Thus, under the accrual schedule above, a regular part-time employee (in the first through fifth year of
service) who regularly works [NUMBER] hours per week could earn one vacation day per month up to a
maximum of [NUMBER] days. One day of vacation would equal four hours ([NUMBER] hours per week
divided by five days in the week) and the maximum vacation time that could be earned would be
[NUMBER] hours ([NUMBER] days multiplied by four hours).