Summary. Unlimited paid time off (PTO) is a vacation policy that allows employees to take as much time off work as they want. Employees must submit a request and have it approved before they can take the days off. Offering an unlimited PTO policy can help employees be more productive and take fewer sick days.
Unlimited PTO gives employees the freedom to take off any number of days during the year without repercussion. It’s becoming more popular for employers to offer unlimited PTO as one of their benefits.
In this article, we will answer any questions, such as how it works, how to use unlimited PTO, and what it means for employees to help them transition to adopting the unlimited PTO style.
Key Takeaways:
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Employees must submit a request with enough notice before the start of the leave period, and it must be approved by the appropriate managers.
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A disadvantage of unlimited PTO could be an absence of workers and the potential of needing them if an emergency happens.
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To help manage unlimited PTO, employers should not keep a score of how often employees take off.
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Try to set a minimum number of days to take off to encourage employees to use the policy.
What Is Unlimited PTO?
Unlimited paid time off (PTO), also called unlimited vacation, is a vacation policy that allows employees to take as much paid time off as they want. They can take this time off as long as it does not interfere with their ability to complete their assigned work.
Most companies will vary with their unlimited PTO policy and will have different rules for requesting time off. Unlimited PTO does not mean an employee can just not show up for work one day if they have nothing to do. It just refers to the cap that is typically put on paid time off.
How Does Unlimited PTO Work?
How unlimited PTO works will vary by each company, but most companies require an employee to submit for the time off. For most unlimited PTO policies, employees don’t begin the year with a fixed number of days they are allowed to take off. Instead, they have to request approval from a manager to take the days off they want.
How To Use Unlimited PTO
To use unlimited PTO, an employee should understand the company PTO policy, plan ahead, and they should submit a request.
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Understand company policy. Before doing anything, employees should understand your company policy regarding unlimited time off. The policy should outline how to submit a request, where to do it, and any other rules regarding unlimited PTO. It can also list who to go to if there are any questions regarding the policy.
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Plan ahead. Even if you have an unlimited PTO policy, employees should still plan ahead. As soon as you know when they want to take off, they start planning to help prepare others for their time away.
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Request, don’t demand. Just because they have unlimited time off doesn’t mean they should demand it. Requests should be submitted per the PTO policy. This will help eliminate any miscommunications that may happen.
Requesting time off is also important because it will allow their manager to inform them of any scheduling conflicts that may affect the time requested.
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Talk with coworkers and management. Once the employee submits the requested time off, they should talk with the appropriate managers and coworkers and inform them of the time away. Talking to them will help create an action plan for things that may need to get done while they are away.
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Get coverage if needed. If the employee has a position that requires coverage, make sure arrangements are made for the time that they are leaving. They should also inform any clients or patients about their time away and provide information on who to contact if the client or patient needs something.
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Be flexible. If something unforeseen comes up at work that affects an employee’s PTO, try to be flexible about it. Things will happen that can cause delays. If the employee is able to leave earlier or later for your time off, they should talk with their managers about it.
How to Manage Unlimited PTO
To manage unlimited PTO, you should avoid keeping scores, set a minimum number, and be respectful of personal and cultural differences.
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Don’t keep score. You should only keep track of how much time your employees take off for official reporting purposes. You should also track their performance based on their productivity and not how long they are in the office.
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Set a minimum. It’s important to set a minimum number of days that your employees must take off. Doing this will help encourage those who may not typically take time off to take it and relax outside of work. Encourage employees to take a long stretch away once a year to help them get away.
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Respect personal and cultural differences. Everyone has different personal and cultural differences, so it’s important to take those into consideration when it comes to unlimited PTO. Everyone will also want to take their days off and spend them how they want, so don’t try and force work on those who choose not to answer at all.
What Is an Unlimited PTO Policy Example?
An example of an unlimited PTO policy is:
Unlimited Paid Leave
At [company name], eligible employees are free to take leave when they require it. It’s [company name]’s intent to provide its exceptional employees with the freedom they require to balance their work-life balance to allow them to reach their full potential at [company name].Eligibility: All full-time employees with 90 days of continuous employment and service are eligible for this policy.
Verifications: Employees must get approved by managers before the start of the leave. Managers and team leaders also reserve the right to request verification of absences when it is legal and appropriate to do so.
Expectations: Under this policy, employees are expected to:
Understand that not all leave requests will be approved or honored due to any staffing needs.
Request time off with enough notice of the time requested. Employees should also avoid any key dates such as [key dates], as those are no-request days.
Meet all goals and task requirements before or during your leave.
Notify the appropriate team members and management before the start of the leave period.
Why Is Unlimited PTO Bad?
Unlimited PTO can be bad because it can cause an absence of workers, and it could potentially be abused. When there is unlimited time off, employees spend more time away from the office, which leads to the probability of needing a worker and them not being there.
Unlimited PTO can also be abused by employees who take off more days than they are working. If a worker is taking off more days than others, it could result in an increased workload for other workers. This could cause them to become more stressed and possibly take more days off to recover from it.
Why Do Companies Choose to Have Unlimited PTO?
Companies choose to have unlimited PTO because it can help increase productivity among employees. Unlimited PTO allows employees to make the most of their time when it works best for them, which can lead to being more productive. Knowing they can take off when they want, it will be easier for employees to stay focused and on task.
Unlimited PTO also eliminates any pressure for an employee to come in when they are sick. Working when sick can lead to being less productive, and there is more room for error in the work. It also can cause other workers to be sick. Unlimited PTO includes sick days, and it encourages employees to stay home when sick.
What Companies Offer Unlimited PTO?
Companies that offer unlimited PTO include Oracle, Twitter, and Netflix. More companies that offer unlimited PTO for their employees are:
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Roku
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Chegg
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GrubHub
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LinkedIn
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Asana
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Sony Electronics
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Microsoft
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Stitch Fix
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Instacart
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Zoom
Does Unlimited PTO Work?
Yes, unlimited PTO can work for employees because it allows them more freedom within their schedule. When they have a better work-life balance, employees can often be more productive and have better morale.
Employees who have unlimited PTO often don’t take more vacation days or spend more time away from the office. Since they have the option to take time when they need it, they are often less stressed and burnt out and need fewer days off.
How Much Unlimited PTO Should I Take?
Employees should take between two and four weeks of their unlimited PTO during the year. Some companies will require a minimum number of days that employees need to take off when they have an unlimited PTO policy. This ensures that employees take the time to rest and recharge to allow them to reach their full potential when it comes to work.
How Does Unlimited PTO Work For Hourly Employees?
There is no legal prohibition on providing exempt employees, such as hourly workers, with unlimited vacation or paid time off. Offering hourly workers unlimited vacation to a policy that does not track or record vacation time can be risky because of state and federal laws that require employers to track and record hourly employees’ time for minimum wage and overtime laws.
How Does Unlimited PTO Work With Maternity Leave?
Unlimited PTO will often offer parental leave under the policy for employees who have recently become parents. It can include maternity leave that is for a longer duration, such as six months or more. It also can include paternity leave that the employee can use at their convenience.
The Family Medical Leave Act can also provide new parents, either those who had a child or adopted, up to 12 weeks of unpaid protected leave per year.
How Does Unlimited PTO Work With FMLA?
There is no federal law that requires an employer to offer any vacation, holiday, or paid sick leave. The only regulation is around the Family and Medical Leave Act (FMLA) for employers of 50+ full-time employees.
The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. Employers can provide eligible employees leave for these reasons:
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For the birth and care of the newborn child of an employee
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For the placement with the employee of a child for adoption or foster care
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To care for an immediate family member, such as a spouse or child, with a serious health condition
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To take medical leave when the employee is unable to work because of a serious health condition
Author
Taylor Berman
Taylor is a freelance writer from Pennsylvania. Taylor got into writing because she enjoys writing articles that help people and loves creating stories that inspire. She earned a bachelor's degree in journalism and public relations with an interest in communications media from Indiana University of Pennsylvania.
