Is unlimited PTO really "unlimited"?
- Claire Baker
- Jun 28
- 2 min read
Updated: 55 minutes ago
Unlimited PTO is a lie. It doesn't exist.
Somewhere between two weeks and thirty years, it has to become something else.
Even an "unlimited" PTO policy has to define limits to be effective.
Here are some situations I've seen where even generous companies with unlimited PTO regretted not setting limits:
1️⃣ When someone needs to go on disability, you need to know when they stopped working.
Unlimited (and untracked) PTO can make it difficult to pinpoint when a disability began, especially if it didn't start suddenly. Sometimes it's only clear in retrospect.
💡 Answer: Define a limit where unplanned absences automatically trigger a conversation about disability.
2️⃣ They no-call no-show.
You need to take them off the books at some point, but when? Without something in writing about when ghosting becomes job abandonment, the decision is difficult.
You can always restore them to their position if they show up with a good excuse. Like a doctor's note that they were stricken by temporary amnesia or a police report showing they were kidnapped by pirates. Too bad you may not be legally allowed to ask too many questions....
💡 Answer: Set written expectations about how to notify others of leave and when no-call no-shows are considered voluntary resignation.
3️⃣ They don't want to come back to work.
Some people take advantage of unlimited PTO to extend their leave with pay, circumventing the limits on your other leave policies.
If someone refuses to return from paw-rental leave because their kitten is too darned cute to leave home alone, you may indulge them for a couple of days, but eventually it becomes unfair to all the other cat ladies who leave their litters at home.
💡 Answer: Make extensions subject to approval and set an upper limit.
4️⃣ Attendance is starting to be a problem. Really.
Attendance is rarely a problem on its own, but when someone's absences are leading to missed deadlines and affecting the rest of the team, you need to address it. If they can use "I was on PTO" as an excuse for everything, you can't have a constructive conversation about responsibilities.
💡 Answer: Define what can't slip as a result of PTO so you have a basis to open a discussion.
5️⃣ It looks more like a sabbatical.
If someone wants to take a big chunk of time off for personal reasons, should they be paid as if they're working? What happens to their benefits? Who will cover their duties? Will there still be a job for them when they return? What if someone else wants to do the same?
You want to have an opening to discuss each of these separately.
💡 Answer: Define an upper limit for consecutive leave, and leave the door open for unpaid leave or a sabbatical after they've been with the company for a certain period of time.
Need help building an unlimited PTO policy that actually works? We can help!
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