Does UPS Pay Out Vacation When You Quit?

Happy Women Celebrating In The Office

Everyone deserves a change at some point in their career and needs to switch from one job to another. If you are an employee at UPS who feels the same and planning to resign anytime soon, some questions about remaining leave encashments will start nagging at the back of your head.


Working at UPS comes with some great perks and benefits. With these benefits, you are entitled to paid vacation based on your years of service.

If you plan to leave UPS and still have some paid vacation remaining, there are a few things that you need to understand about vacation leave encashment at the time of resignation.

  • UPS will pay out vacation if you give two weeks’ notice.
  • Leave encashment does not apply to part-time/seasonal employees.
  • The number of leaves is proportional to your years of service.

This detailed guide will walk you through the essential points to remember if you are looking forward to getting paid in return for your remaining vacation at UPS. An insight into UPS and its employee benefits will portray a clear view of this scenario.

An Insight Into UPS

Before getting into details of the leave encashment scenario at the time of resignation, let’s have a little insight into the organization itself.

United Parcel Service (UPS) is a leading multinational courier company founded in 1907. It all started with a $100 loan in the basement of a home in Seattle. This $100 startup in Seattle has now evolved into one of the best courier services globally, with a net worth of $142 billion.

UPS provides supply chain management services serving more than 220 countries using an active fleet of 288 UPS aircraft and 307 leased planes.

Paid Vacations Encashment at UPS

Paid Time Off Is Shown

Every workplace has its own set of rules to maintain a work-life balance and create a favorable environment for employees. Some rules are implied by the government, and some are added by the employer.

UPS also has its own rules to provide its employees with a balanced and satisfactory working environment. Let’s find out its specific direction for paying out vacation when an employee plans to quit.

Two Week Notice

To clear the confusion, the straightforward answer is yes; UPS will pay out vacation when you quit. But to be eligible for leave encashment, you must take care of a few things.


Seasonal or part-time employees can not cash out their paid vacations.

First, you need to make sure your employment contract states that you can encash your vacations at the time of resignation.

Secondly, two weeks’ notice is a crucial point that most employees need to pay attention to and get a payout for the remaining vacations.

Quitting a job without prior notice can affect the company and slow down their work, as there would be no immediate replacement to fill your spot and resume the work. In this case, they have the right to cancel all your remaining leave encashments.

With that being said, if you are looking forward to quitting UPS and want to encash your remaining vacations, plan your resignation ahead of time. Send a notice to your manager at least two weeks before your resignation. This will allow your employer to find your replacement and let you leave without any disruption.

After taking care of these points, you are all set to leave UPS with the remaining vacations added to your last paycheck.

How Many Vacation Leaves Do You Have?

A Guy Ready For Vacation Leaves

Before worrying about leave encashments, you first need to figure out how many leaves you have.


No government law enforces paid vacations for employees. These paid leaves are subject to the company’s policies or employment contract.

At UPS, your leaves are proportional to seniority and years of service. In easy words, the number of leaves is based on two factors, your role or position and the number of years you have worked in that position.

Imagine working for five years at an organization, and you have the same number of paid vacations as the person who worked only for one year; it sounds absurd, right? This is only fair if the other person serves in a senior role.

Not all employees will have the same number of leaves. UPS officially claims to provide paid vacations ranging from one week in exchange for a year to seven weeks for thirty years of service.

After your first year of service, you will receive one week of vacation and two weeks the following year. After five years, these holidays will grow to three weeks and go up to a maximum of four weeks after fifteen years.

Termination vs. Resignation

The closure of a job can be of two natures: You choose to quit by your own will, or your employer decides to let you go.

Termination from the job can be due to multiple reasons, such as poor performance, inability to deliver what is expected of an employee, disciplinary issues, fraud, or ineligibility.

The nature of termination also influences the encashment of your remaining vacation. If you are being terminated due to serious fraud or disciplinary issues, UPS has the right to fire you immediately, and you won’t have any notice before your termination. In this case, they will not pay out vacation.

On the contrary, they will give you two weeks’ notice and pay out your remaining vacation if the matter is not so serious.

The same is the case for resignation. If you wish to resign immediately without notice, you will not be eligible for leave encashments.

Employee Benefits at UPS

Employee Benefits At Office

UPS aims to create an equal working environment for all genders and races without any discrimination. Its employees are offered healthcare benefits with paid sick leaves.


The drivers of UPS earn a market-leading salary with an estimated $150,000 per year, including health and other welfare contributions.

In addition to full-time employees getting a pension, they also provide pension support to their retired part-time employees. UPS is one of the few companies offering pensions to their part-time workers.

Part-time employees can also benefit from paid vacations, holidays, and other leaves, but they can not demand a payout for the remaining leaves at the time of retirement.

Ending Note

UPS is the world’s leading courier company with reasonable rules and regulations for its employees. You earn your paid days off as you work through your tenure.

If a UPS employee plans to quit, they should plan ahead and give a two weeks notice to be eligible for encashment of remaining vacations. It is also important that your employment contract declares you eligible for this encashment.

UPS is not entitled to pay out your vacation if you are a part-time employee.

Frequently Asked Questions

To Whom Should I Send My Notice Before I Plan To Quit?

You should send the notice to your immediate manager. If not, you can contact the Human Resources Department of UPS, and they will take care of your case.

You must lay out all the terms and understand your rights before making a move for resignation.

How Will I Get the Encashment for My Remaining Vacations?

UPS only pays out vacation if you inform them two weeks before your resignation. In this case, you have a time frame for discussing your possibilities with your manager or the HR representative and can decide how you want your leaves to be provided.

UPS will pay out your vacation by adding it to your last salary in the most straightforward and ideal case.

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