We have an employee who requested to take one week's vacation, which we approved well in advance. Unfortunately, due to changing schedule demands, we had to cancel his vacation last minute. Obviously, the employee is upset about this and is requesting vacation pay on top of his regular pay for the hours he worked.
This is not our typical practice, and I know by law we're not required to pay his vacation hours. But I'm just curious to know what other companies do in this situation. We don't want to set a costly precedence, but we also don't want to lose a good employee for low morale as a result of this. Any suggestions?