Vacation

Vacation is the common North American term for time away from work for rest or travel.

Key takeaways

• North American label: “Vacation” is the everyday US and Canadian term for paid time away from work for rest or travel.
• Often inside PTO: Many US employers fold vacation into a single PTO bank rather than tracking it as a separate category.
• UK equivalent is annual leave: British workplaces use “annual leave” or “holiday” for the same concept — a distinct statutory entitlement.
• No federal US mandate: There is no federal requirement for paid vacation; entitlement depends on employer policy or state law.

Common questions

What is vacation leave?

Vacation is the common North American term for time away from work for rest or travel. In many US workplaces it sits inside a PTO policy rather than as a separate bank.

How does vacation differ from PTO?

Vacation refers specifically to time off for rest or travel. PTO is a broader US term that may combine vacation, personal days, and sometimes sick leave into one pool. When an employer uses a single PTO bank, “vacation” is no longer tracked separately — the employee draws from the shared balance for any approved absence.