Annual Leave

Annual leave is paid time off from work given to an employee by their employer. Annual leave can be used for vacation or sick leave, but the amount of time offered varies by employer. It is also not guaranteed in the United States, although there are laws which allow for medical leave under certain conditions. State and local governments may also have minimum time-off requirements.

Unlike other rich countries, the U.S. does not require mandatory annual leave policies, although many companies offer these benefits as a means to attract workers. Employees are, however, given national holidays off from work as well as some vacation time, generally 10 to 20 work days.

Benefits of Annual Leave

If annual leave is offered to an employee it may be used for any reason: business, emergencies, vacation or rest and relaxation. Employees must, however, get approval for annual leave from their supervisor or their place of employment. Companies which offer annual leave may also allow for the accrual of unused leave and offer a lump-sum payment for accumulated and accrued annual leave when the employee leaves the company.

Proponents of annual leave suggest vacation time is good for the health and well-being of the worker, who after the vacation may come back rested and better able to meet their job responsibilities. Opponents of mandatory annual leave argue companies should have the option to offer it, if necessary, to attract workers, but it should not be forced on the employer. Employers also argue it can be costly and disruptive to production. More importantly, opponents of required annual leave believe the market should decide, allowing employers to decide if offering annual leave is critical to the retention of their best employees.