Holiday as last day of employment?

JudyBeach

Can a recognized holiday also be a person's last day of employment? Must a person actually work on their last day? We do not allow a person to use PTO to extend their last days of employment.

I am asking because the is the question I have had presented to me:

I will be moving to Wisconsin in about a month and expect to give my official notice that I will be leaving PPP at the end of the week (August 5). Here is my question: can I make September 5, which is my 5-year anniversary with PPP, my last day of work even though it falls on Labor Day? My intention is to work up to my anniversary so I will be 80% vested in the company profit sharing plan; however, I realize this is a peculiar situation because of the holiday. Please let me know what the PPP policy is, and what I need to do to ensure that I will be 80% vested when I leave.



Note: We do not have a specific policy in place since this is the first time this has come up in my 23 years here.

We do not allow persons to use PTO to extend their last days of employment. Is there a connection?

Any feedback would be very helpful.

Judy Beach

lorrie

I have allowed this when the last day of employment fell on the last day of the year, and 12/31 was on Friday and considered a holiday since 1/1 fell on Saturday. The reason I allowed is was so that the employees were considered employed on the last day of the year, so they did not forfeit profit sharing for that year.

In general I would say I would work with employees like this if they are leaving in good standing. I know this leaves it sort of a gray area, but that is what I would do.

POPEYE

I think you have really answered your own question. If you do not allow PTO to be used and this EE has stated that 08/05 will be their last day, then 08/05 is their last day. While I am very pro-employee and try to see that they are treated fairly and get what they have coming to them, I also have a responsibility to my company and allowing this so that an EE that is leaving gets another 20% of the companies money would not be a smart business decision. (In my opinion)

Dutch2

Will you receive Holiday pay for the 5th, even though you will have already worked your last official day?
We have a policy that in order to receive holiday pay, the employee must work their last scheduled day before the holiday and their next scheduled day after the holiday. This really helps to prevent ee's from calling in sick the day before or after a holiday. Therefore, we would not count the 5th as a day worked. But if you worked the 6th and then left, yes, you would receive holiday pay and the next percentage increase in the vested portion of your plan.
Good luck,

mdm

We have the same policy here. An employee must work their full scheduled day before and after the holiday. So the 5th does not count.

LivindonSouth

Personally speaking, and notwithstanding your anniversary and vesting dilemma, if I were your personnel manager, I would cut back your termination to your last day of work. I say this because my primary allegiance is to the employer.

Last week I had a review cross my desk for a guy who was working out a two week notice. In line with standard practice, his manager rated him and gave a raise consistent with the review. What it meant was his vacation payout and quarterly bonus check would be based on the raise. I vetoed that. Why cause the company additional financial obligation relative to an employee who has or is departing. Makes no sense to me.

I suggest you should couch your departure/termination/resignation a week after your magic anniversary date. The company is in business to make a profit, not to recognize a departing employees objectives.




Disclaimer: This message is not intended to offend or attack. It is posted as personal opinion. If you find yourself offended or uncomfortable, email me and let me know why.

marc

I am with Livindon philosophically on this and with Dutch as to practice.

Companies do lots of things to improve retention. With a departing EE, there is no point.

Hunter1

I agree with Popeye: You do not allow employees to use PTO to extend their last day of employment, and this is what this employee is attempting to do.

You would think that a person intelligent enough to move to Wisconsin would have enough brains to work at least the one day after the holiday in order to gain the additional vesting.

njjel

In another line of thought, I think your retirement plan document may tell you what you want to know. If you will be paid for the holiday then perhaps you will be eligible per your retirment plan document. That happened here once but the holiday was on a Friday. The ee was considered to have still been employed on the holiday.

LivindonSouth

I agree. Moving to Wisconsin would be an IQ test of sorts. x:-)

Gillian3

You have set your policy by the way that you deal with PPO, so no. If it were me, I would accept a change in resignation date, providing that the person added some work days.

HRLASS

We don't do it with the company profit sharing plan, but do the the extent possible under the plan document for the Employee Retirement plan. In some cases we have allowed vacation until the employee reaches the designated level; generally in cases where the employee had a considerable vacation bank which then reduced what we had to pay them. Only with employees in good standing. Otherwise it's up to the employee not to voluntarily terminate until they have reached their preferred plateau.