Does company policy override a previous contract?

UPDATED: Sep 30, 2022

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Does company policy override a previous contract?

Yesterday I submitted my resignation giving a 2 week notice to my employer.

Understandably, they asked me to leave immediately. They are not paying the 2 weeks notice even though I am a salary manager which is not a legal matter but only bad business practice. That is not the issue I have but rather sets a scene for what type of business they are practicing. The real issue is the lack of payout of vacation time. I was on-boarded with

Asked on February 23, 2016 under Employment Labor Law, Indiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

In your state, only accrued or earned vacation time must be paid out upon termination of employment. Vacation time which was not accrued is not required to be paid, which means that they are not legally obligated to pay out vacation "gifted" to you when you started, but which you did not earn over time by dint of the weeks or months you worked. Moreover, offer letters rarely are considered to create enforceable contracts--they are most often much more in the nature of summary of what you are expected to get than a contract. While you may wish to consult with an employment law attorney, bringing with a copy of the offer letter for him/her to review, for a definitive answer taking in all the particularities of your situation, as a general matter, based on what you write, they do not appear to have to pay out the vacation time.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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