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IMO that's the only reason for employers to offer "unlimited PTO" schemes.

A lot of companies also have continual headaches about requests for unused time to roll over into the next fiscal year. So not only is the accrual a problem in regards to terminated employees but it's a debt on the books that has to be tracked and serviced.

My fun story about that is the large company I worked for a couple of decades ago - they still had a policy that allowed you to bank up to a year's worth of vacation time. After a few employees decided to retire a year early by taking a 52-week vacation and then retiring, the whole policy was trashed.

Imagine having a coworker retire and you can't fill the headcount for an entire year because they're still an active employee.




They could fill the headcount. It’s another dumb policy that prevent them from filling it.

Works needs to be done and there’s no one to do it, the fact you can’t hire is a problem.


> you can't fill the headcount for an entire year

Why couldn't you?


Because, as mentioned above, this was an old-school company. Departments had budgets, and your labor budget was fixed and pretty much determined how many people you could have.

That retiree on 'vacation' was drawing a paycheck and was still part of your yearly budget. Asking for a replacement meant increasing the budget by that extra person's salary, and that was a bureaucratic problem.

Oh, and here's the fun conclusion to the story I forgot to mention. When the policy was cancelled and rollover was taken away, every employee got paid a one-time lump sum for their accrued rollover time. Some people got 30-40 weeks of pay in a single check. And that launched many employees into a higher tax bracket for that year. Lots of fun all around.




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