Paid Time Off – The Policies and Understanding How it Works


Paid Time Off Policy

Paid time off policies can be very different from company to company. Depending on the employer and the job type is ultimately going to decide how paid time off is going to work. Paid time off can be sick days, personal days, time for vacations and even holiday pay. It is important for an employee to understand how their paid time off works. Sometimes work can be overwhelming and have the chance to recharge by taking a paid vacation will keep employees working at their best.

How is Paid Time Off Used?

Being sick and going into work is never a good day for anyone. An employee who has paid time off available to them can be beneficial in this scenario. Being sick is almost never planned and employers know this. They want their employees to perform at their best and if an employee is sick, this will not happen. Sick days are designed to give the employee the time off to recover.

Taking a family vacation should not be a difficult thing to establish. Everyone needs a break from time to time and having paid vacation time can do just that for an employee. Vacation time is pre-planned and the employee must discuss the times they plan to take off with their employer well in advance.


family vacation

Personal time is essentially any time an employee needs to take off whether planned or not. Personal time can be used for various types of appointments such as medical and dental appointments, family emergencies, or any personal issues that may take an employee away from their work.

Most companies offer holiday paid time off to their employees. This usually includes holidays such as Christmas or Memorial day. Employees typically know whether they have the holiday off and some companies even offer the employee extra incentives to work the holiday.

Whether it be vacation time, sick days, or personal time off, it is important to for the employer to give their employees time away from work and it is important as the employee to understand how their paid time off works.

Prevalent Paid Time Off Policies in the Workplace

Paid time off can be set up in numerous ways by the company that a person works for. Some companies segregate paid time off into specific banks to be used throughout one year. For example, an employee can have ten vacation days, seven personal days, two emergency days and five sick days available to use per year. Once all of the paid time off available is used, an employee no longer has the advantage of taking time off while still being paid for it.

Another way companies give their employees paid time off is by banking an allotment of time allowed per year. For instance, an employee will be given 15 days of paid time off per year to be used as needed. This option gets rid of any discrepancies between the employer and the employee as to why an employee might request time off.


family vacation too

Some companies use this same concept but in a different direction. Employees can gain hours per paycheck and those hours can then be used as needed for vacation, sick days, and personal days. When an employee is hired, the company where they are hired with will give them a set number of paid time off hours to start with, such as 20 hours. Then, for every paycheck, the employee will then start to accrue extra hours. This gives the employee the chance to use their paid time off for what they need while also gaining more each month.

A New Way of Giving Employees Paid Time Off

Companies everywhere are adopting a new trend in paid time off that involves giving an employee unlimited paid time off. This policy allows the employee to work as much as needed while also being able to take as much time off as needed. An employee is allowed to take paid time off as much as they want as long as their work gets completed.

This has shown to increase productivity with employees as more and more people want to get their work done in order to go home early. Some employees will use this policy as working only a few hours one week and then the next working long hours to get everything completed. Employers who have used this policy have seen productivity levels rise and employees are more satisfied with their jobs.


peak performance

Vacation Before Starting a New Job

Performing at the best of a person’s ability can be applied in every aspect of life, but can especially be applied to the workplace. When starting a new job, It can be scary and be draining when transitioning from one job to another. Pre-cation is another paid time off policy that some employers incorporate into their companies. This policy gives employees a pre-cation before starting their new job. This pre-cation is often a two-week vacation before starting a new job to help with the transition from the previous job and to ensure that the new employee is recharged and ready to go for their new job.

Every company is different regarding their paid time off policies. Understanding and knowing the policies will ensure employee satisfaction and increase productivity by allowing employees to take time to recharge and mentally prepare themselves for work.



Credit for this small business article goes to NECHES FCU, Port Neches, TX.
Neches FCU is a Texas credit union and has an awesome team of professionals ready to manage it’s wide base of members. When the doors open at any of the several service centers, our core objective of “Ultimate Member Satisfaction” becomes the driving force for every representative. They are well-known for a personal, dynamic and enthusiastic work atmosphere, delivering a memorable service experience, and where members are known by name.
Neches FCU has approximately $438 Million in assets with over 45,000 members. Neches is recognized by members and the business community as one of the best credit unions in Texas and an actively involved partner, helping our Family, Friends and Community!