Unlimited PTO policy with minimum days

Replace each [bracketed prompt] with your company’s details and delete any section that doesn’t apply. This template is a starting point, not legal advice. Leave, holiday and payout rules depend on the state or country where each person works, so check the law there before you adopt it.

1. Purpose

[Company] offers unlimited paid time off so people can rest when they need to, without tracking a balance. Unlimited does not mean optional. Everyone covered by this policy takes at least the minimum number of days off each year, and managers make sure the work is covered while they do.

2. Who this policy covers

This policy covers [all full-time employees / employees in these locations or roles: list them]. It starts on your first day of work.

- Part-time employees: [covered, with the minimum reduced in proportion to scheduled hours / covered by a separate policy].
- Contractors and temporary workers: not covered unless their agreement says otherwise.
- Where local law or an employment contract gives someone more paid leave than this policy, that rule applies.

3. The minimum and how it’s counted

There is no maximum. Everyone takes at least [15] working days of paid time off each [calendar year / policy year from Month 1].

- Counts toward the minimum: vacation and personal days you plan and take, counted in your scheduled working days.
- Partial days count as part of a day: [a half day counts as 0.5].
- Doesn’t count: company holidays, sick days, parental, family or medical leave, bereavement leave, jury duty and any other leave the law protects separately.
- At least [5] of the minimum days are taken together as one break of consecutive working days.
- If you join partway through the year, your minimum is [the yearly minimum multiplied by the full months left in the year, divided by 12, rounded down to the nearest half day].
- Where the law sets a higher minimum amount of paid annual leave, the legal minimum applies instead.
- Unused minimum days don’t carry over to the next year. The point is to take them.

4. Requesting and approval

Request time off in [tool or channel] before you book anything you can’t change. You don’t need to give a reason.

- One day or less: [2 business days’] notice.
- Two to four days: [2 weeks’] notice.
- Five or more days: [4 weeks’] notice.
- Your manager replies within [2 business days]. Approval depends on coverage and deadlines, not on how many days you’ve already taken.
- If dates don’t work, your manager suggests other dates in the same reply.
- Sudden absences, such as illness or a family emergency, don’t need notice. Tell your manager as soon as you can.

5. Coverage and handoff

Before any absence of [3 or more] working days, the person going on leave and their manager agree how the work is covered.

- Each responsibility that needs attention has one covering owner who has agreed to take it on, and a backup.
- A written handoff lists the next action, deadline, where the documents are and who decides urgent questions.
- Covering owners confirm they can open the files and systems they need before the absence starts. Passwords never go in a handoff.
- The team keeps at least [minimum number of people] available on each working day. When requests overlap, [first approved / the manager agrees a fair rotation].
- Set an out-of-office reply that names your return date and who can help.
- People on leave are not expected to read or answer work messages.

6. Blackout periods

A blackout period is a short window when the team needs everyone available. [Company] keeps them rare.

- Current blackout periods: [dates and reason, or "none"].
- New blackout periods are announced at least [60] days in advance.
- Time off approved before a blackout is announced still stands.
- Exceptions for important personal events go to [manager or leader].

7. Holidays

Company holidays are listed in [link or location] and published each year by [date].

- Holidays don’t count toward the minimum.
- For people in different countries or states: [each person observes the public holidays where they work / each person picks [10] holidays from a published list].
- If you work on a holiday because the business needs you to, take another day off within [30] days.

8. Leaving the company

Under this policy, time off is not accrued, so there is no balance to pay out when you leave, except where the law where you work requires payment or where a balance carried over from an earlier accrued policy is owed.

Rules on accrual and on paying out unused vacation at the end of employment differ by state and country. Check the law where each person works, or ask an employment lawyer, before you rely on this section.

- Previously accrued balance: [describe any balance from an earlier policy and how it is handled, or delete].
- Time off during the notice period: [approved as normal / by agreement with your manager].

9. How managers check rest

Managers are responsible for their team actually taking time off, not only for approving it.

- Every [quarter], each manager reviews the days each team member has taken against the minimum.
- Anyone below [a quarter of the minimum per quarter elapsed] gets a short check-in to plan dates. The conversation is about workload and cover, not performance.
- By [Month], anyone who hasn’t booked the rest of their minimum agrees dates with their manager.
- Managers take the minimum themselves and say so when they do.
- Leaders review team-level totals every [half year] to spot teams that aren’t resting. Individual totals are shared only with the person and their manager.

10. Questions and changes

Questions about this policy go to [name or role]. [Company] reviews this policy every [year] and gives at least [30] days’ notice of changes. Approved time off stays approved if the policy changes.

Policy owner: [name or role]. Effective date: [date]. Last reviewed: [date].

Free template from Ample · ampletime.ai/unlimited-pto-policy-template/