A vacation policy outlines the rules and guidelines regarding time off for employees. It typically includes details about how many vacation days employees earn, how they can request time off, and any restrictions on when vacations can be taken. This policy ensures that both employees and management understand their rights and responsibilities regarding vacation time. Additionally, the vacation policy may specify how unused vacation days are handled, such as whether they can be carried over to the next year or if they expire. Clear communication of this policy helps maintain a balanced work environment and supports employee well-being.