I am relatively new to the banking world and I've been asked to research if banks are still adhereing to vacation policies that require employees to take their vacation in 2 week increments. I've heard a couple of different views since coming here - 1) it is required by the regulators; and 2) the regulators strongly advise such policies but it is not [/u] required.

Any help is appreciated.

From the FDIC's Risk Management Manual of Examination Policies Section 4.2 Internal Routing and Controls:

Vacation Policies
All banks should have a vacation policy, which provides that officers and employees be absent from their duties for an uninterrupted period of not less than two consecutive weeks. Such a policy is considered an important internal safeguard largely because perpetration of an embezzlement of any substantial size usually requires the constant presence of the embezzler in order to manipulate records, respond to inquiries from customers or other employees, and otherwise prevent detection. Examiners and bank management should recognize that the benefits of this policy may be substantially, if not totally, eroded if the duties performed by an absent individual are not assumed by someone else. Where the bank's policy does not conform to the two-week recommended absence period, examiners should encourage the board of directors to annually review and approve the policy actually followed and the exceptions allowed. In such cases it is important that adequate compensating controls be devised and strictly enforced. If after consideration of all relevant facts and circumstances it is determined that the vacation policies are deficient, the matter should be discussed with the chief executive officer and the board of directors. Comments and recommendations on the supplemental Internal Routine and Controls schedule may be appropriate.

According to the state banking survey very few banks were still using the 2 weeks rule. Another local bank surveyed the banks in the area and found 2 (them and us) were the only ones still using the 2 weeks rule. For both of us 2010 is the first year we've allowed the 2 weeks to be split.

Our institution does not require the 2 week vacation. It is required that all employees take at least 1 full week.

We are required to take 1 week and are allowed to break up the other week.

We are required to take one full week (Mon-Fri).

This is a dead horse - do a search on the subject.

I attempted a search prior to asking the question. When I did the search it brought up everything BUT vacation policies. I apologize for wasting your time. Thank you to those who responded. It was very helpful.

hrlady:

Search using the term "vacation policy" with quotes, set it to all forums, set the range to 10 years, move the hits to show a 100 on a page.

You will get many.......

Anyone else notice that when you do a search and choose "in body" it doesn't work? You just get every recent thread, not what you're searching. It's been that way for awhile now, so I've found that I'm limited to searching subject lines only. Sorry to hijack the thread. I just thought I'd point out that that may be why hrlady didn't get what she was looking for.

same here (5 consecutive days) so if you take a week where a holiday falls on Monday you must take the following Monday.

OK - don't tell anyone I said this, but the search function for the threads stinks.

Personally, I use Google more often than not. Near the top of the page in the Regs area, http://www.bankersonline.com/abcsoup/abcsoup.html I have a video on how to search the regs efficiently and effectively. You can apply the same strategy using the threads URL, http://www.bankersonline.com/forum/ubbthreads.php and it should also work if you wanted to narrow this to one forum. Use the initial URL for that forum.

See if this helps.

You can also use the same process to search all of BOL and get results from the guru Q&As that are posted every week, articles, etc.

Every bank I've ever worked at required only that you take 5 consecutive business days off. If you take a week off that includes a bank holiday, you may add a day to the beginning or end of your vacation. Your remaining time off may be taken as you wish.

The first bank that I worked for 20+ years ago required 2 weeks consecutive. The second bank I work for initially required 2 weeks consecutive, then changed policy to 5 days consecutive and the remainder could be broken up. That was after I had worked there 4 - 5 years. Current bank that I work for requires 2 weeks consecutive. I preferred the option of dividing the 2 weeks.

Wow, the majority of people only get two weeks vacation? If that's all you get, I find it ridiculous that you are forced to take them at once. There is no reasoning for it in my opinion.

I take a 2 week vacation every year anyway, but that's because I get 6 weeks total paid time off per year, and the remaining 4 weeks I divide up however I wish...

Must be nice to have 6 weeks vacation. I had that with the bank that laid us off after 30 years of service, but not anymore.

"paid time off" versus a bank that has sick leave and vacation is a huge difference. I get 3 weeks vacation, and have another 15 sick days. While I take the vacation, i've not taken a sick day in years - although I have many co-workers that use every bit of their sick leave as if it were vacation. Unused sick days accrue for long term leave, so if something were to happen I currently have about 60 days in store where I would receive full pay before having to worry about short or long term disability. if we changed our policy to PTO, I would likely still not take 30 days.

The 2 weeks consecutive came about as regulators figured anyone doing fraud that was out for 2 weeks, it would be discovered. With the move to many modern conveniences (PCs, software programs, AML, etc) the 2 weeks has been changed by most banks to 1. And many smaller banks leave it at 2 as with fewer employees it is much easier to handle.

My husband gets 4 weeks of vacation per year. Last year he used about 7 days and so far this year he's used 4. I'm about to strangle him. Honestly, he needs some time off but says he 'can't'.

I am all about my vacation! We're on a "use it or lose it" system, so you bet I use it all up - and I don't feel guilty about it! In fact, they really encourage everyone to use their PTO and enjoy time away. Every year I schedule 5 weeks off for vacation purposes and I keep the remaining PTO week for sick time (if needed, which is rare) and any school functions for my kid. If I don't use the sick time, I take some time off around the end of the year. We already have a very generous short-term disability coverage, where if something were to happen I would get paid 100% of my salary for 8 weeks.

I *puffy heart* the benefits at my new job. I know I'm extremely lucky.

In 27 years at four different banks, I've never had to take 2 weeks together. I've never had the examiners make an issue of it, either.

Duchess, you need to hit your husband over the head. Everyone needs a break from work, and everyone with family needs that time together. If you have good colleagues and well trained support staff, the company will survive.

I agree - he heads up the commercial lending region for a large bank. Very stressful as you can imagine.

And from a compliance standpoint, I too encourage him to take his vacation time.

Anytime the commercial people take a break, its like a small break for us as well!

it's been my experience that anytime someone says they can't afford to be away from work, they are either ineffective in their job, micromanagers, or have no faith in the people they have working for them...

Duchess - tell your hubby I said this, and ask which one he is. It may make him see the light. Of course, you could also schedule a vacation and tell him when he needs to take off so you can go as a family.

Yep... Or they're doing something bad - hence the 5-consecutive days off rule, which is what started this thread.

Not that I'm implying that duchess skittles' husband is doing something bad!

Well sometimes people have a difficult time taking time off from work because they are so over loaded with work that they are afraid they will miss a deadline if they take time off. Or they will get even farther behind than they already are.

I do agree that people need to take time off to refresh themselves and to spend time with family.

We have up to 4 weeks vacation, 5 sick days, and 1 1/2 personal time plus a short term paid disablity up to 12 weeks depending on time of service. We used to have to take two weeks at a time which was really bad when you only had 2. Now its full weeks for the first two (not at the same time) and then daily for any other days you have accrued. We really do have great benefits not just vacation benefits.

I agree that with all of the current techonology two weeks is too long for a fraud to unravel. We have never had a regulator even ask what out vacation policy is.