how does vacation pay work?

Question

I have Two Jobs... and one has always taken money off each pay cheaque and if you need it they will give it to you in the same cheaque you would get on the next payday( WHICH SUCKS)
At my other job ..you can have 2wks paid after working there for a year and that comes out of my bosses pocket I guess. O i was wondering which one is right. I know there is loop holes but it is right answer right??/

Answer 1

That first one sounds odd. I don't think they should be taking money out unless it's for taxes, etc.

For full-time jobs, you accumulate vacation time, so after one year, you'll earn your two weeks and you'll get paid for those two weeks as if you were working. That money is already figured into your salary, so it doesn't really come out of the bosses pocket.

For part-time jobs, you get vacation pay added onto every paycheque. So if you're pay is $10/hour and you get 4% vacation pay. You'd actually get paid $10.40/hour. The theory is that when you go on vacation, instead of them paying you, you save that extra 4% they gave you and live off of that during the vacation.

Answer 2

Usually there is a special fund but aside for your vacation ( 2 weeks ) of pay period which you accumulate through time. The best thing to do is read your company policy manual or just ask your Manager what are the vacation policies at your perspective jobs. Some companies will give you your vacation money that you have accumulated on the pay period prior to going on vacation if you request it beforehand. Check with your Manager.

Answer 3

I'm not sure I understand how it works at your first job... if I understand your description of the situation, they withhold some of your money, and if you ask for it, they give it to you in the next pay check? That's not vacation pay, that's garnishing wages; they're holding onto your money, and probably using it to make more money through investments, which you could also do if you actually had your money in your bank account instead of your employer's... that just doesn't sound right at all.

The second situation is the standard model for vacation pay -- they promise to continue paying you your normal pay even though you're not working those days. Your first job doesn't sound quite cricket; I'd ask your HR department to explain it to you, and if it still doesn't seem right, I'd ask a financial expert their opinion.