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In some places if you have vacation days in your contract then the company is required to pay you out remaining days that you left unused. It winds up being ch

In some places if you have vacation days in your contract then the company is required to pay you out remaining days that you left unused. It winds up being cheaper for them to offer Unlimited Days* because then they don't pay out un-taken days. * Subject to manager approval of course. I strongly suspect there is still a target number of days allowed for each employee based on their place in the org, and requests for days past that number will usually be denied unless there are extenuating circumstances.

prepend 4y ago
Exactly, that's why companies offer unlimited rather than a generous amount. I worked for a firm that gave 30 days of PTO a year (in addition to holidays and whatnot). They budgeted it as an expense and planned accordingly. It would be interesting to see what "unlimited" vacation giving firms budget and plan for as a liability. If the goal is high employee morale, then they should budget and plan a very high amount. If the goal is to "benefit signal" to pretend they have good benefits, then they will only budget a low amount.
- cyanydeez 4y ago
  They plan zero. Unlimited PTo relies on the rest of the business processes to regulate behavior. For consultants, %. Billable will dictate your unlimited PTO. for widget making, quotas will work. For project assignments, expect tighter deadlines. Company culture will dictate usage and accounting gets to remove the liability.
- dragonwriter 4y ago
  > It would be interesting to see what "unlimited" vacation giving firms budget and plan for as a liability. “Unlimited” (=non-accruable) PTO isn’t a liability, that’s (from the firm’s perspective) the whole point of using it.
markus92 4y ago
Yup. Changing jobs and I’m expecting to get 400 accrued hours paid out from my previous job.
- thfuran 4y ago
  Have you never taken a vacation?
  - markus92 4y ago
    Of course I have, but not a whole lot. 6 weeks a year builds up over five years.
coldtea 4y ago
>In some places if you have vacation days in your contract then the company is required to pay you out remaining days that you left unused. So? They should factor that in as a business expense, like your regular pay. If you take no vacation days and end up getting paid 100% of them, it should be accounted, and if you do take some days, then the company can have that money.
- cyanydeez 4y ago
  Unlimited pro is basically an accounting trick as it reduces your liabilities. The employment terms dictate the outcome.

prepend 4y ago

Exactly, that's why companies offer unlimited rather than a generous amount. I worked for a firm that gave 30 days of PTO a year (in addition to holidays and whatnot). They budgeted it as an expense and planned accordingly. It would be interesting to see what "unlimited" vacation giving firms budget and plan for as a liability. If the goal is high employee morale, then they should budget and plan a very high amount. If the goal is to "benefit signal" to pretend they have good benefits, then they will only budget a low amount.

cyanydeez 4y ago
They plan zero. Unlimited PTo relies on the rest of the business processes to regulate behavior. For consultants, %. Billable will dictate your unlimited PTO. for widget making, quotas will work. For project assignments, expect tighter deadlines. Company culture will dictate usage and accounting gets to remove the liability.
dragonwriter 4y ago
> It would be interesting to see what "unlimited" vacation giving firms budget and plan for as a liability. “Unlimited” (=non-accruable) PTO isn’t a liability, that’s (from the firm’s perspective) the whole point of using it.

markus92 4y ago

Yup. Changing jobs and I’m expecting to get 400 accrued hours paid out from my previous job.

thfuran 4y ago
Have you never taken a vacation?
- markus92 4y ago
  Of course I have, but not a whole lot. 6 weeks a year builds up over five years.

coldtea 4y ago

>In some places if you have vacation days in your contract then the company is required to pay you out remaining days that you left unused. So? They should factor that in as a business expense, like your regular pay. If you take no vacation days and end up getting paid 100% of them, it should be accounted, and if you do take some days, then the company can have that money.

cyanydeez 4y ago
Unlimited pro is basically an accounting trick as it reduces your liabilities. The employment terms dictate the outcome.