Vacation is a term used in English-speaking North America to describe a lengthy time away from work or school, a trip abroad, or simply a pleasure trip away from home, such as a trip to the beach that lasts several days or longer. In the rest of the English-speaking world the word "holiday" is used, whereas in North America, "holiday" normally applies to a specific national holiday or long weekend related to such a day. In some cases "vacation holiday" is used in North America, which signifies that a vacation trip is taken during a traditional national holiday period, extended on either end of the period by taking additional time off from work—creating a longer time unencumbered by work, an extended "long weekend," as it were. This practice is common in the United States which has most national holidays legislated into the nearest Monday and where employers give far fewer annual vacation days (see below) than European employers—so stretching the related national holidays tends to conserve one's accumulated total of eligible days available for longer quality vacation excursions.

In England the word "vacation" referred specifically to the long summer break taken by the law courts —a custom introduced by William the Conqueror from Normandy where it was intended to facilitate the grape harvest. The French term is similar to the American English: "Les Vacances." The term derives from the fact that, in the past, upper-class families would literally move to a summer home for part of the year, leaving their usual family home vacant.

Most countries around the world have labor laws mandating a certain number of days of time off per year to be given to a worker. In Canada the legal minimum is two weeks, while in most of Europe the limit is significantly higher. Many American companies give only one week, and then frequently only after completion of a year of employment.

In modern employment practice, vacation days are usually coupled with Sick leave, official holidays, and sometimes personal days.

Americans and Canadians, especially those of recent British or European descent, may also use the word "holiday." "Annual Leave" is another expression used in Commonwealth countries. Many Canadians use both "holiday" and "vacation"; "...I'm taking holidays..." is a common expression, something not often heard in the United States.