An employee plans to leave a job but has 2 months of PTO that cannot be cashed out. Would it be common for a person in this situation to give notice that his/her last day will be, for example, May 1st, but schedule that 2 months of PTO during March and April–making the last actual day of work (besides May 1) at the end of Feb.? Is there any reason not to do this, or would an employee be stupid not to take all his/her paid vacation time? Do employers frown on this, or is this just what is usually done in this situation?
I’m not in HR, but left a job in 2014 after 15 years of employment due to an out-of-state move. I think it depends on the policies of the employer. I had 6 weeks PTO which I could cash out. However, my employer had a policy that on your last day you had to be physically present in the office.
In 24 states, it is required to cash out vacation time upon termination.
Do you have an employee handbook? There should be something in there.
Our state does not require cash out. Company is in another state, however. Company policy is use it or lose it–and only 18mo. worth of PTO can be accrued. Handbook doesn’t go into details on how to maximize PTO for the benefit of the employee when leaving job. I read that some employers would not allow someone to take vacation after giving notice. But what if you must give 90 days notice (not usual two weeks), and already have vacation scheduled during that time before giving notice?
My company doesn’t allow PTO to be used after you give notice. A two week notice is required.
The policy should be in the employee handbook. The job I left in 2011 allowed a full cash-out. My current job allows only 75% cash-out. I had a job for a short time in between these two jobs; that job had no cash out allowed.
There definitely is no cashout. But would it be “normal” for someone to try to use up the PTO before leaving because there is no cashout?
I used it twice, but I had to show up for a week of work after each “vacation.” It was still worth it - I started the new jobs recharged.
We could not do it this way. We had to work two final weeks. I cashed out. I tried like crazy to use it up but I accumulated it so fast that it was impossible. I should have started sooner. Check your own company rules on how you can do this.
and only 18mo. worth of PTO can be accrued>>>>>
18 MONTHS worth of PTO? Holy cow. We maxed out at something way, way less than that, can’t rememer exactly, maybe 8 weeks or so.
I’m sorry–I meant the PTO which was earned in the previous 18 mo (not 18 mo of vacation)–it would be like 8 weeks of vacation time.
You might run into a situation where you can’t work for 2 employers, so can’t give notice, take 3 months of leave, and start working for a new employer. Many employers have stopped allowing unlimited vacation time to accrue. One I worked for didn’t allow ANY to carry to the next year - use it or lose it. Same for sick time - 10 days per year, use it or lose it. Federal employees can carry over 240 hours. Some states limit employees to a certain amount of pay outs because people were retiring with months and months of accrued time and the cost was hard on the budgets (paying for time earned 10 or 20 years earlier).
If it is allowed and you want to take the leave, do it. You may only be allowed to take 2 weeks at a time, you may have to work a busy period (accountants in March, for example), but see if you can schedule it.
I’ve never been in a job where it wasn’t “use it or lose it” (within the current year). I never took all my vacation time, which is partially my own fault.
This was linked to an article in the WaPo today – http://www.nolo.com/legal-encyclopedia/paid-vacation-what-are-rights-33485.html
talk to HR direct! you may not be able to just take a couple months off just because you have accurred it.
maybe you will need to take a $$$$ payment for unused time. I would frown on this. you are locking the position while not being at the job and you are not coming back(like you had a baby and will be back after a couple months). so HR needs you off the “books” so they can replace you. this situation would be a problem for many companies and in my opinion disrespectful. so if you came to me I would say you can have 2 months pay and best of luck to you. but if the company will not do that…I doubt you can just disappear for 2 months and they say ok you are leaving us just take 2 months off and than quit.
I think you may lose the pto.
I also have the use it or lose it policy. I want my people taking vacations, and only one employee doesn’t use every minute and then some. Plus that would be a big hit to have someone taking off for a long period. Especially if you have days from years ago when you made less money, those vacation days end up being more expensive.
Do you work for a reasonable place where you could ask? I think if I were you I’d make plans assuming you’ll lose the pto and it will be a nice bonus if you get it.
In the future don’t accumulate so much time without a very clear policy on how it’s handled at the end of employment.
I want my people taking vacations
My boss says that, too. It might help if we were adequately staffed so we don’t have to work until 8 or so at night the whole week before & week after … we’d be more apt to actually take time off.
Yes, they SAY they want employees to take vacation, “so everyone can refresh and come back energized” (or some such BS), but the reality is that, in some jobs, there is a huge disincentive to take time off because the worker is “punished” (have to do the same volume of work before leaving/after coming back and take work along on days off) for doing so. Not “refreshing” at all to leave for vacation extra exhausted from getting ahead on work, then come back even more stressed about the work you have to catch up on, and PO’d that you were on your computer/phone the whole time you were supposed to be on vacation.