Paying out PTO upon resignation

Hi, for those that do not have unlimited time off policies but still accrue paid leave (PTO, vacation, etc), what are the current payout trends? 

We pay out a set # of hours but not the whole balance.  I've worked at other places that pay out the whole balance.  Looking to see if we need to increase as I'm getting requests to ignore the policy (which sets precedent) and pay out more than that set amount lately. 

Thanks everyone! - Debbie

7replies Oldest first
  • Oldest first
  • Newest first
  • Active threads
  • Popular
  • Hi Debbie - We are a software company and we pay out on a 1:1 basis on termination for the entire balance when an employee leaves. We calculate the accrual for the final payroll, deduct any leave used that payroll, and whatever is left we pay out.  If a manager or CEO wants to pay more than that, we incorporate it into a severance agreement instead. We also cap our accruals at 200 hours.

  • Hi Debbie,

    We are a government contractor in the IT world.  We pay out the balance of PTO upon termination if we received two weeks notice.  We also only allow a 40hour carryover at the end of the year.

    Mary Homer

  • Hi Debbie,

    We do pay out the whole balance as long as the employee gives and works their full notice periods.  I've attached our policy below.  

    • Julie Peterson
    • Director, Human Resources
    • Julie_Peterson
    • 2 yrs ago
    • Reported - view

    We are in the process of changing our current policy to carry over a max of 300 hours from year to year (currently it is a max of 224-464 max hours based on the accrual tier).  We pay out full balance at term provided they give and work a 2 week notice.  

    We are looking for a way to offer a transition period to the 300 hour max for those who are over and need to use up some time.  Anyone have ideas?!

  • We allow a 15 day carryover each year and will pay out any earned but unused PTO time regardless of how the employee exits the organization.  We do not payout any floating holidays or alternate holidays. 

  • We pay out all accrued but unused vacation at time of termination even if no notice is provided.  We cap accrued maximum at twice what you can earn in a year.  Balances carry over into the next year.  FYI - We also operate in CA  which restricts how we can administer the program.


    Phil Brunner

  • We have a generous PTO plan and we allow unlimited PTO accruals. We periodically remind employees the bank is not just for vacations but is also for sick days, long term leaves and for the unexpected. We pay out up to 750 hours. 

Like Follow
  • 2 yrs agoLast active
  • 7Replies
  • 74Views
  • 8 Following