Time Off from Work

Monica Ruiz 01.21.15
25 Chill Graffiti

The holidays have passed, but spring break and summer vacation will soon be upon us. Now is a good time for companies to review their paid time off (PTO) policies.

The employees PTO balance should be readily accessible and the company’s policies clearly communicated. Companies may sometimes have difficulty with calculating and administering those balances, or worse, may not even have a defined plan.

When developing a PTO policy, companies have several options available to them. They could opt to offer separate banks for time off depending on the situation, such as sick, personal, and vacation time. Another easier to administer option is to combine the categories into one bank for time off. Companies can choose whether to accrue PTO based on time worked, or award it all in one lump sum at a designated date.

A time off plan should resemble your company’s philosophy. In developing a plan that fits your company, consider the following items that need to be addressed in order to create a clear and concise policy:

  • Who is eligible for paid time off?
  • Will you allow part-time or temporary employees to accrue time off?
  • Will you have an all-inclusive time off plan or will you separate it into different categories?
  • Can employees have negative balances?
  • How much advance notice should an employee provide? 
  • Can employees carry over any remaining hours from year to year?
  • Will time off be paid upon termination?
  • What is the approval process for requesting time off? 
  • How much time can be requested off at a time?

A clearly defined PTO policy can be beneficial for management when collaborating with employees regarding their requests for time off. It can also be a useful tool in recruiting top talent to the company.

Certain states regulate a minimum amount of time off a company must provide their employees. For assistance in developing your company’s PTO policy or questions about your state requirements, please contact Nextep’s HR Department.

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