Paid time off (PTO)
Paid time off is time away from work for which an employee continues to receive pay under applicable rules or policies.
Employers may use PTO as an umbrella term or as the name of a combined allowance for holidays, sickness and personal matters. Other employers keep those categories separate. Compare what the allowance covers before comparing the number of days. Ask how time is earned, how requests are approved and whether public holidays come from the same balance.
Legal minimums differ. EU working-time rules provide for at least four weeks of paid annual leave, with national rules or agreements potentially offering more. In the United States, the federal Fair Labor Standards Act does not itself require paid vacation; other laws and employer commitments may apply. A company's PTO label does not explain which legal entitlements are included. Check the rules for your workplace and the written leave policy, especially when moving between countries.
Example
One offer combines holiday and sick days in a single allowance, while another lists them separately. The candidate asks for both policies before comparing.
What to check
- Identify which absences the allowance covers.
- Check accrual, approval and carry-over rules.
- Ask how public holidays are counted.