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⟩ What would you do if a co-worker tells you in confidence that s/he plans to call in sick while actually taking a week's vacation?

I would tell this co-worker that being dishonest to her boss, as well as her co-workers, is not wise, and being dishonest in her job is wrong. I would say how we all want more vacation time, but we have to earn it and that taking this extra time hurts everyone in the department because the person's absence will affect productivity.

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