vacation

the amount of vacation you earn each year is based on your vacation service

The amount of vacation for which you’re eligible each year is based on the number of full years of vacation service you are expected to achieve during the calendar year and your regular work schedule. 

• Refer to HR Policy 120 - Vacation (intranet) to review the view the annual vacation amount table.
• Vacation service is determined by your health and welfare eligibility service date or your time off service date, if any. (Note: Time off service date is viewable by HR only). You might have a time off service date if you have industry experience recognized upon hire.
• Experienced hires may receive credit for vacation service in increments of 5, 10, 20 or 30 years. For example, if you are hired with 9 years of directly related industry experience that Chevron recognizes, you will receive a credit of 5 years of vacation service as determined by your time off service date and policy. Therefore, at hire you will start with an annual vacation amount equivalent to 5 years.
• If you are a new hire, the vacation amount for that initial calendar year is prorated based on the number of calendar days from your start date to the last calendar day in the year.

you earn vacation each day of the calendar year

Your vacation balance shows your earned vacation hours to date. You can still take your annual vacation allowance at any time during the year, even if you haven’t earned it yet.

• If you take more vacation than you have earned, your vacation balance will show a negative amount until your accrual catches up. If you have a negative vacation balance when your employment ends, you won’t be required to pay back the unearned hours already taken.
• If you don’t take all of your vacation in the calendar year in which it is earned, any unused hours will remain in your balance the following year. Keep in mind that you are strongly encouraged to take your annual vacation each year to minimize carryover from year to year.

Local business unit approvals regarding use of vacation apply.

learn more

• Refer to HR Policy 120 - Vacation (intranet) for more details
• Understanding your vacation balance and accrual (intranet) 
• Examples of how vacation is earned and can be taken

You are encouraged to use all of your vacation every year. There is a cap on the amount of vacation you can earn.

• The cap is equal to your annual vacation allowance plus 80 hours. 
• If you reach the cap, you won’t lose any vacation you have earned; however, you will stop earning vacation until you take enough vacation to bring your balance below the cap. Once you reduce your balance below the cap, you will begin earning vacation again. 
• Any hours you could have earned while you were at the cap will not be retroactively earned.
• See an example of how the vacation cap works

vacation allowance and cap

only vacation that is earned and unused as of your last day of employment will be paid out

When your employment ends, you’ll receive a payout of your earned vacation as of your last day of employment, minus any vacation already taken. 

• Advanced (unearned) vacation is no longer deemed earned for purposes of payout when you leave the company. 
• Timing of this vacation payout varies based on applicable state wage and hour laws, however, vacation payout is generally done at the same time as your last paycheck.
• This payout could be in the same check as your last paycheck or in separate checks, but date is the same.

Your vacation payout is regarded as supplemental pay and is subject to income tax withholding in the year received. Your vacation payout is not benefits bearing. This means:

• Medical, dental and other benefit deductions are not withheld.
• Company contributions are not applied, such as the company match to the Employee Savings Investment Plan (ESIP) or the company contribution to the BenefitWallet health savings account (HSA).
• The vacation payout is not considered in the calculation of Highest Average Earnings, so it does not influence the amount of your pension benefit.

With management approval and at the company’s discretion, if you are voluntarily terminating your employment, you may extend your termination date by the number of annual vacation days for which you qualify during the calendar year in which you terminate — less the number of any vacation days you already took – as long as you meet both of the following requirements:

• You are at least age 50
• You have at least 10 years of health and welfare eligibility service, including five years since your last hire date.

You may not extend your termination date across calendar years. In addition, you may only extend your termination date by your available annual vacation for the current year. You may not apply any vacation hours earned in the previous year toward your extended termination date.

The following example scenarios illustrate vacation options upon voluntary termination of employment.

example 1: mary

• Annual vacation entitlement: 240 hours (30 days)
• Vacation balance from the previous year: 0 hours
• Work schedule: 5/40
• Years of vacation service: 30
• Amount of vacation earned per pay period: 10 hours* (240 hours annual entitlement / 365 days per year x 15 days per pay period)
• Pay frequency: Twice a month

Mary plans to retire on March 31, and does not have any remaining vacation hours from the previous year. In the current year, she’ll earn 60 hours of vacation from January through March (10 hours x 6 pay periods). Here are Mary’s options:

• With her manager’s approval, she can extend her termination date up to the amount of her current year annual vacation entitlement (240 hours), minus any time already taken during the year.
• If she doesn’t take any vacation in the current year, she’ll receive a payout of 60 hours (the amount earned as of March 31).
• If she takes all 60 hours of earned vacation, she won’t receive a payout of any additional vacation.
• If she takes more vacation than she earned (for example, she takes her entire current year vacation entitlement of 240 hours, even though she hasn’t earned all of it), she won’t be required to pay back the amount she took but didn’t yet earn.

* Approximate amounts rounded to the nearest whole number.

example 2: jack

• Annual vacation entitlement: 240 hours (30 days)
• Vacation balance from the previous year: 80 hours
• Work schedule: 5/40
• Years of vacation service: 30
• Amount of vacation earned per pay period: 10 hours* (240 hours annual entitlement / 365 days per year x 15 days per pay period)
• Pay frequency: Twice a month

Jack plans to retire on March 31. On January 1, he has 80 hours of vacation remaining from his previous year’s vacation balance. In the current year, he’ll earn another 60 hours of vacation from January through March (10 hours x 6 pay periods). Here are Jack’s options:

• With his manager’s approval, he can extend his termination date up to the amount of his current year annual vacation entitlement (240 hours), minus any time already taken during the year. He cannot use his remaining vacation from the previous year (80 hours) to extend his termination date.
• If he doesn’t take any vacation in the current year, he’ll receive a payout of 140 hours (80 hours from the previous year plus 60 hours earned in the current year).
• If he takes all 140 hours of earned vacation (80 hours from the previous year plus 60 hours earned in the current year), he won’t receive a payout of any additional vacation.
• If he takes more vacation than he earned (for example, he takes his previous year’s balance of 80 hours plus his entire current year’s vacation entitlement of 240 hours, even though he hasn’t earned all of it), he won’t be required to pay back the amount he took but didn’t yet earn.

* Approximate amounts rounded to the nearest whole number.