If your organization wants to track time off (or time worked remotely) but not limit people to a specific amount of PTO, this article will help you set up an unlimited PTO policy (sometimes called DTO).
With an unlimited PTO policy, employees will still submit and approve PTO requests, but won't be limited to a set number of days/hours. Instead, the system will simply record PTO usage throughout the year without limiting it in any way.
Unlimited PTO policies will display hours used in an incrementing fashion (counting up) rather than in a decrementing fashion (counting down).
Note that once any PTO transactions exist, you cannot change an unlimited policy to become limited, or vice versa.
Follow these steps to create an unlimited policy.
- Go to Settings > Paid Time Off.
- Click the "Add PTO Policy" button to add a new policy.
- Choose “Unlimited” when selecting the type of policy you would like to create and click “Next”.
- Customize the policy by configuring each setting and saving your changes.
Here is a brief description of each setting:
- PTO Policy Name: This is the name by which the system will refer to each PTO policy. Examples names could be “Vacation”, “Sick”, “PTO”, etc.
- Calendar Label: You may not want the calendar to show which type of time off an employee is taking. This field allows you to give this policy a different name (or alias) for purposes of the calendar.
- Employee Instructions: This field allows you to add a brief note or instruction that will be displayed to each person who has this policy. This is helpful if you need to remind employees about a certain restriction or rule regarding the usage of this particular type of time off.
- Do requests require approval?: Built for Teams can auto-approve time off requests if you change this setting to "No".
- Who receives time off requests?: Choose whether a person’s manager (the person they report to) or an HR Admin will approve their PTO requests. Note that even if you choose the person's manager, all Company Admins, HR Admins, and HR Managers have access to approve or deny all PTO requests should the manager be unable to.
- Is there a waiting period?: If you require that a person is employed for a minimum number of days before taking time off, enter that value here. A common example is a 90-day waiting period. Accruals can still occur during this waiting period if you'd like, but the employee will only be able to request time for dates after the end of the waiting period.
- When do account balances reset?: Most companies handle paid time off on a yearly basis so at some point all accounts are reset. This is typically on January 1 or on the employee’s hire date. Alternatively, you can choose an arbitrary date during the year if necessary. On the chosen reset date, each employee’s PTO account will be reset according to the policy’s settings which include any carryover rules.
Now that you have this policy configured, some next steps might include the following: