HR Glossary
Paid Time Off (PTO)
A pooled leave policy that combines vacation, sick, and personal leave into a single bank of days.
Definition
PTO is a leave policy model that consolidates different leave types — vacation, sick leave, personal days — into one flexible bank of days employees can use for any reason, rather than tracking each leave type separately.
Why It Matters
PTO policies simplify leave administration but require careful configuration to still meet statutory sick-leave minimums.