Currently our office policy to is to award vacation days to be used over the course of a year after each year of employment. We do not currently pay out unused vacation time at the end of the year, or on termination. My questions are is this a typical or atypical policy?Also, I have just been presented with a potential change in policy, which would state that if an employee is terminated the vacation days used during the current year would be prorated for the portion of that year that the employee has worked, and either they would be paid out if less vacation days had been used (say 5 are allotted for the year, and after 6 months, only one has been used), and charged out of the last paycheck if more vacation days are used (4 days after 6 months), so that if an employee only works an additional 6 months after their anniversary of hire, they would only be entitled to 2.5 vacation days. Is this legal?

Is this legal? Whatever the company decides to do with the vacation time given to employees it certainly is. Vacations are not mandatory for companies to give. This is a perk. I've worked at companies where you cannot take even ONE day vacation unless you have worked there a full year. Your company sounds more than generous with even their revised plan. Many times I have worked well over a year at a company before taking even one day vacation. Some jobs I've never taken a vacation even if I could do so.