Paid time off policies differ from company to company and corporation to corporation. Featured here are facts and definitions to consider when determining what your company’s policy is for paid time off:
Time Off Policy Categories
Employers typically use one of two categories for their paid time off policy which is as follows:
- Traditional Paid Time Off (Sick + Vacation)
Most companies use the Traditional (Sick + Vacation) policy. Employers and employees know this typical PTO policy very well. It is one where employees compile a set total of paid leave hour during a year. The sets are broken out into two categories, sick time and vacation with paid time off from five (5) to ten (10) days, or more, depending on how long the employee has been with the company or what job position they are in. Most companies also provide traditional national holidays to company employees with paid time off to everyone in the company for holidays including days such as the Fourth of July (July 4th) and Christmas (December 25th).
- Modern Paid Time Off (PTO Banks)
In 2019 many companies are changing to a PTO policy that are not set up in separate time off categories. Sick time and vacation time are placed together and are assessed as time off that is for personal use when it is used for vacation day off or a holiday day off. Traditional holidays are categories set up separately. Inside Modern Paid Time Off there are two categories of PTO banks: uncapped and capped.
Company Time Off Policy Assessment
How does a company decide what is the best paid time off policy to put in place for its employees? The smartest approach is to review the company’s policy now in 2019 and look at how it is being used by staff members currently.
Be certain that the policy you have in place is the top one for your company that fits your company’s goals and financial budget. Also, it is critical that your company provide clear written documentation of its PTO policy and that employees acknowledge they have read the policy completely.