Unlimited Paid Time Off (PTO)

A Unlimited Paid Time Off (PTO) policy gives employees flexibility to take paid time off as needed without accruing a set balance, while setting clear expectations for requesting and approving time off, coordinating coverage, and handling jurisdiction-specific rules that can affect payout, wage-and-hour compliance, and required leave coordination.

How to Write an Unlimited Paid Time Off (PTO) Policy

• Start with "why" and introduce the concept.
• Define what unlimited PTO is and what it replaces (no accrual or tracking of a set bank).
• Explain what employees can use PTO for in broad terms.
• Describe the request and approval approach for taking time off.
• Set expectations for communication and coordination to keep work on track.
• Clarify how PTO can be taken (for example, full days or partial days).
• Encourage regular time off and reinforce that the benefit is meant to be used.
• Separate unlimited PTO from legally protected or required leaves and note coordination between them where allowed.
• Address how illness-related absences are handled and how you decide between PTO and other leave options.
• State that unused PTO is not paid out at separation because there is no accrued balance.
• Close with where employees can go with questions.

For advice on writing an Unlimited Paid Time Off (PTO) policy in a specific jurisdiction, see below.