Can Your Employer Hold Vacation Pay Until You Sign a Severance Agreement?

In Massachusetts, you must be given your final paycheck, including payment for any unused accrued vacation time, on the date of termination if you are fired or laid off, or in the next payroll period if you resign.

Some severance agreements, especially if the employer is not primarily located in Massachusetts, will condition your receipt of the vacation pay on signing the severance agreement. You should consult an attorney before signing this agreement- you have an absolute right to receive that pay, whether or not you sign a release of claims.

This applies only to vacation pay, not unused sick time. Your employer can require a release of claims in order to "buy back" unused sick time at termination.

Learn more here about evaluating a severance agreement.