ZaheerKhan
Junior Member
What is the name of your state (only U.S. law)? California and Other States
I am working with a tech company that is considering eliminating its PTO policy, essentially offering unlimited time off for sick, vacation, personal time, etc.
On its surface, this is a great deal for the employees. No time off tracking, no approvals for vacation, no worrying about being sick more than the three days you�re allotted.
However, there are a number of hidden disadvantages here. No accumulated PTO means no banking of that PTO. The employee can no longer sell unused balances periodically and no PTO payout is due when they leave the company.
So, for example, if an employee is laid off for some reason, they could expect a certain severance package + a payout of an accumulated PTO balance. The PTO payout could be significant depending on a company�s policy on PTO carry over. As severance policies are constrained by organizations to reduce the cost of restricting, this concern becomes material. The situation can be more significant in the event an employee is terminated involuntarily. A PTO balance payout can be that employee�s lifeline until they land a new role and/or stabilize their situation.
I would be curious to gather people�s thoughts and opinions on this topic.
I am working with a tech company that is considering eliminating its PTO policy, essentially offering unlimited time off for sick, vacation, personal time, etc.
On its surface, this is a great deal for the employees. No time off tracking, no approvals for vacation, no worrying about being sick more than the three days you�re allotted.
However, there are a number of hidden disadvantages here. No accumulated PTO means no banking of that PTO. The employee can no longer sell unused balances periodically and no PTO payout is due when they leave the company.
So, for example, if an employee is laid off for some reason, they could expect a certain severance package + a payout of an accumulated PTO balance. The PTO payout could be significant depending on a company�s policy on PTO carry over. As severance policies are constrained by organizations to reduce the cost of restricting, this concern becomes material. The situation can be more significant in the event an employee is terminated involuntarily. A PTO balance payout can be that employee�s lifeline until they land a new role and/or stabilize their situation.
I would be curious to gather people�s thoughts and opinions on this topic.