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Paid Time off (PTO) Policy template

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​[Sender.FirstName][Sender.LastName] ​[Sender.Company]​

A paid time off policy is a benefit offered by employers that allows employees to take time off from work while receiving compensation. Although federal and state laws do not mandate paid time off, many employers use PTO as a competitive benefit to attract and retain employees. Check out our comprehensive paid time off policy template below to draft a PTO policy for your business.

Purpose of PTO policy

This PTO policy is intended to inform both the [Sender.Company] and its employees about how paid leave time will be earned and requested. This paid time off policy shall act as a reference for all PTO and shall be active until a new paid time off policy has been drafted by the [Sender.Company]'s human resources department.

The employee agrees to abide by this PTO policy per the terms of their employment, as well as any and all signed employee contracts. Any employee abuse of this PTO policy shall be considered time theft. An employee's deviation from this policy may result in written disciplinary actions or termination.

This PTO policy does not address other topics such as parental leave, Family Medical Leave Act (FMLA), disability, or any other type of legal absence. Please contact human resources for information about these types of leave.

How to earn and use paid time off

​[Sender.Company] employees shall accrue PTO based on the number of hours worked on a rolling basis.

Full-time employees shall accrue (0.00) PTO hours per pay period for a maximum of (0) PTO days or (0) PTO hours per year for the first year of employment. The employee may be offered additional accrued PTO opportunities based on performance and years of service, as determined by their supervisor and/or the human resources department.

Part-time employees shall accrue (0.00) PTO hours per pay period for a maximum of (0) PTO days or (0) PTO hours per calendar year for the first year of employment. Additional accrued PTO opportunities may be available per the supervisor's request and subject to human resources approval.

An employee's PTO may be used at their discretion for vacation time, personal days, or sick days. Only (0) hours of PTO will roll over after each calendar year for all employees. Any accrued, unused PTO greater than the (0)-hour limit will not roll over and shall be forfeited.

In addition to paid time off, all [Sender.Company] employees shall receive time for sick leave.

Both full-time and part-time employees shall receive (0) hours of sick leave at the beginning of each calendar year. Employees do not need a supervisor's approval to use their sick time. However, approval may be required if [Sender.Company] or a supervisor determines an employee may be abusing sick leave for extended absences.

Sick time is "use it or lose it" and shall not roll over if unused at the end of each calendar year.

Requesting paid days

To request PTO, all employees must fill out a PTO request form. This form shall be made available on [Sender.Company] 's benefits website.

Employees may take (0) hours or less of PTO without supervisory approval. A supervisor must approve any PTO requests that exceed (0) hours.

Paid leave requests must be submitted (0) weeks in advance of the requested time off to allow supervisors to approve the PTO request and fill the schedule accordingly. In the event several employees request the same days off, PTO requests shall be assessed on an individual basis. Priority shall be given to employees who submitted paid time off request forms early.

The requested PTO is not guaranteed until a supervisor signs off on the PTO request form. Available PTO for some employees may be subject to change based on [Sender.Company]'s staffing needs. Some departments may have "blackout dates," during which employees may not request PTO. All blackout dates for an employee's respective department shall be posted on [Sender.Company]'s benefits website.

PTO request forms are valuable documents that help you and your business keep track of paid days for each employee. Don’t be intimidated about creating another document – PandaDoc has worked with hundreds of companies to create customized paid time off request forms. Check out our free time off request form here.

Paid holidays

In addition to PTO and sick leave, [Sender.Company] offers several paid holidays throughout the year, including New Year's Day, Memorial Day, the Fourth of July, Labor Day, Thanksgiving Day, and Christmas Day.

If a holiday falls on a weekend, the next business day will be the observed holiday. For a specific list of each year's paid holidays, please refer to [Sender.Company]'s benefits website.

Depending on your business, you may want to customize which holidays you select as paid holidays in your PTO policy. You could also foster goodwill among employees by offering special days, such as the day after Thanksgiving, as a paid holiday if there already will be a lull in business during that time.

Referencing PTO

Employees' PTO bank, sick leave allowance, and paid holidays shall be available for reference on the company benefits website as well as on the individual's pay stubs.

Changes to the PTO policy

​[Sender.Company] may adjust any of the information in this PTO policy at their sole discretion, including but not limited to changes to PTO accrual, unused PTO, sick days, unused sick days, requesting paid time off, and paid holidays.

​[Sender.Company] agrees to do its best to inform all employees of PTO changes in a timely manner. [Sender.Company] will notify employees of any changes that will affect earning or retaining unused time within (0) business days. Any changes to this PTO policy will be posted on the company benefits website and communicated to all employees via email.

For additional questions regarding this PTO policy, please contact the human resources department at [Sender.Email] or [Sender.Phone].

​

Signature
MM / DD / YYYY

​[Sender.FirstName][Sender.LastName]​

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FAQ

  • A paid time off (PTO) policy is a company regulation that describes the conditions under which an employee can temporarily leave work and still get paid for that time. There can be many possible uses for PTO, including vacation, sick leave, personal matters, marriage, loss of a loved one, etc.

  • The typical formula is 80 PTO hours for every year of full-time work. It can be specified as 0.038 hours of PTO for each hour of work. Alternatively, you can use the old-school approach of 2 weeks of vacation, 8 paid holidays, one personal day, and five sick days.

  • To create a paid time off policy, specify the formula for accruing time-off hours, define whether they all go into the same “bank” or are separated into different groups (vacation, sick leave, etc.), note the maximum possible PTO time during the first year and possible additional PTO opportunities. See our template for an example.

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Paid Time off (PTO) Policy template

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Paid Time off (PTO) Policy template can be used as a benefit proposed by employers that allows employees to take time off from work while receiving payment. Check out our extensive paid time off procedure template below to draft a policy for your company.

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