What is the PTO Policy?

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It is seen that more than half of the adult population is spending about one-third of their time in office. It is essential to offer them fixed time-off to be used in times of stress or relaxation to maintain their work-life balance, which is not calculated in loss of pay. This time-off is excluded from the privilege, casual and sick leave. More time at work can cause hindrance to attentiveness to work and personal life also.

Employees can take such time off any time they need. Eventually, it can help them to equalize personal and private life, along with bringing energy to the job after long hours of hard work. It is special time-off that employees can also use for their personal needs like family events, vacations, etc. It also acts as a positive influence for the employers in their talent hiring process to attract more talents. Moreover, the PTO Policy also helps the company in developing a positive culture change in the working environment that will improve the productivity of employees in achieving the organizational targets.

Know the following criteria in the sample policy.

  • The importance of paid time-off for employees to keep them relaxed and motivated at work.
  • The amount of time off to be provided to different employees according to their categories.
  • To which employees this policy will apply.
  • The purpose and brief of what is paid time and why it is required.
  • Sample policy to assist you in designing for your company.
  • The guidelines on how to use the offered time-off and necessary regulations on it for the employees.

PTO Policy Template Sample

Under the PTO policy, ‘Name of the Company’ offers its employees monthly/yearly fixed hours of time-off, which they can use whenever they want. The company believes that employees also want specific time away from the busy schedule of work. This policy offers time-off according to what the government has stated.


The purpose of the PTO policy is to offer employees some time from their schedules so that they can relax or spend some time with their families.


This policy applies to every full-time, part-time, and contractual employee regardless of their position and department in the company.


Though ‘Name of the company’ understands the importance of personal time-off required, certain specifications need to be followed not to violate the policy.

  • An employee should never take more than (day/hours) of time-off.
  • An employee should not take time off during any important undergoing project regardless of a genuine reason.
  • No employees are allowed to use PTO before (number of months) after their joining.
  • The PTO offered to the employees is different from the privilege, sick, and casual leaves so as to comply with government rules.
  • Employees must state the reason for applying for PTO if the time-off exceeds (time/days).
  • Exceeding the quota of paid time-off, no employees can apply for it. If used, it will be considered unpaid time-off.
  • The pending PTO (may/may not) be carried forwarded to the next year as per the board of directors’ decision.
  • The pending PTO will not be encashed in the next (month/year).

Time-off Specification

Based on the employee category, the time-off offered is different is stated as under:

  • Full-time employees receive (time-off per month) multiplied by months of the contract.
  • Part-time employees receive (time-off per month) multiplied by months of the contract.
  • No employees are allowed to use PTO before (number of months) after their joining.

Download PTO Policy Template

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