HR Chat: Unused PTO

Your company provides employees with 15 days of paid time off (PTO) per year once they have completed 90 days of employment. Recently, one employee was terminated due to not meeting performance standards. Upon termination, the employee requested payment for the 9 days of unused PTO they had accrued. Since your current PTO policy does not include provisions for paying out unused PTO upon termination, are you required to compensate the employee for those unused days?

Terminations can be challenging for employers, particularly when ensuring compliance with employment laws. With myHRcounsel, you can streamline the termination process and ensure every step aligns with legal requirements. We’ll also help you develop an updated workplace policy that clearly outlines how unused PTO is handled, helping you prevent potential issues in the future.