Unlimited Paid Time Off: Amazing Benefit or Massive Scam?

As companies battle to attract and retain top-tier talent, they develop new benefits to entice workers to join their teams. 

Unlimited paid time off, or “unlimited PTO,” is one of the newer benefits arising in the past decade. 

What’s Unlimited Paid Time Off

Unlimited PTO policies allow employees to take as much time off as they want whenever they need it. There is no cap on their vacation time or sick time. Workers can take time off to manage their personal affairs, take a much-needed week-long holiday, or stay home when sick, all without worrying about their leave balances. 

There’s no waiting until you earn enough time because there is no earned time. 

Companies typically offer this perk in highly competitive industries to pretend they care about work-life balance. 

Do Unlimited PTO Policies Work?

A woman sits at her laptop surrounded by books. She's tired and overwhelmed with her hand on her head.
Photo Credit: fizkes via Shutterstock.com.

Unfortunately, some of the perks only work in theory. In practice, unlimited PTO feels like a scam. Though they appear attractive on the surface, they often don’t work as intended (or maybe they do, and “unlimited PTO” serves as 1984 double-speak, meaning you can never take time off!)

A user in the popular antiwork community on Reddit asked the crowd if these policies actually work or if it’s just a tactic designed to attract applicants. 

The users shared a wide range of experiences working for companies with so-called “unlimited time off.”

You Can Never Use The Time Off

The most common complaint concerning these unlimited time off policies is that managers don’t actually let you take time off. 

You may have unlimited time off on the books, but you can’t take time off unless your manager approves, and your manager will always find a reason to say no. 

“It’s unlimited, but you have to ask Steve and then find someone to cover your projects, and Sara is on family leave, so now isn’t really a good time, and we have some new folks starting next week, so that’s not a good time either and then, of course, the week after that is the harvest moon and then….” shared one user, highlighting how manager’s use any excuse possible to prevent employees from using the leave. 

In theory, you have unlimited time off, but if you can never use it, it’s not really a perk. 

Social Pressure

Coworkers surround a man working at his laptop, giving him more and more to do. He has his hands on his head, overwhelmed.
Photo Credit: Krakenimages.com via Shutterstock.com.

Even if a manager lets you go, they’ll tell you they don’t like it. The only work cultures where unlimited paid time off remains advantageous to companies are those where everyone agrees that taking time off is terrible. 

If you dare use the work perk, your boss, colleagues, and underlings will all side-eye you. 

“You have this odd peer pressure to not take PTO. Especially extended periods of PTO,” said one user, of how the culture, rather than leave posted on the books, limits your time off. 

“The limit is guilt and implied idea that taking too much will make you take very little,” added another, saying that as a result, “You take less than you [would] actually get a set amount.”

Workers may be allowed to take time off, but if it hurts their social standing at work and limits their opportunities for advancement, they may not take it. 

It Protects Companies’ Profits

One user pointed out a more insidious reason companies offer unlimited paid time off: They don’t have to pay cash-outs for unused leave. 

Most companies offering paid time off as a benefit consider those days part of your compensation package. If you don’t take them, you’re still entitled to compensation. Some companies offer leave payouts annually, while others only provide payouts if an employee leaves the company. Either way, they’re paying for the leave. 

However, a business doesn’t need to worry about these payouts if it offers unlimited paid time off. No leave on the books means nothing to pay out. 

Unlimited PTO is a Scam

Although it sounds nice in theory, most users agree that, in practice, unlimited paid time off is a scam. Perhaps one day, we can shift our toxic work culture to make unlimited time off policies work for employees rather than for companies. 

Until then, working a job with a defined time off benefit is better, even if it’s less time off than you would like.

Source: Reddit

Author: Melanie Allen

Title: Journalist

Expertise: Pursuing Your Passions, Travel, Wellness, Hobbies, Finance, Gaming, Happiness

Melanie Allen is an American journalist and happiness expert. She has bylines on MSN, the AP News Wire, Wealth of Geeks, Media Decision, and numerous media outlets across the nation and is a certified happiness life coach. She covers a wide range of topics centered around self-actualization and the quest for a fulfilling life.