[greenyoda]

"It is a bit unfair since the employee leaving hits the company with a big payout"

Paying out for unused vacation days is the only fair thing to do. After all, the company got all those unused vacation days as extra work days.

[finance-geek]

I noted it was unfair because when the employees leave, the cash-out happens at the employee's final salary (which may be larger (even 2x!) the salary at the time of accrual)