Payback time or private holiday time ( PTO ) is a policy in some employee handbooks that provide an hour bank where employers channel sick days, days holidays, and personal days that allow employees to use as needed or desire. This policy is primarily concerned with the United States, where there is no federal legal requirement for the minimum amount of paid holiday (see also mandatory statutory leave list by country). Instead, the US company determines the amount of paid paid off to be given to employees, while recalling the rewards in recruiting and retaining employees.
Generally, PTO working hours cover everything from planned holidays to sick days, and become more common in the field of human resource management. Unlike other traditional leave plans, the PTO plan does not differentiate employee absences from personal days, holidays, or sick days. After work, the company determines how many hours PTO will allocate per year and the "rollover" policy. Some companies let PTO accumulate for one year, and unused hours disappear by the end of the year. Some PTO plans can also accommodate unforeseen or unforeseen circumstances such as jury duties, military duties, and mourning leave. PTO bank plans usually do not include short or long-term disability leave, worker compensation, family leave and medical leave, sabbatical, or community service leave.
It is not clear when the PTO type bank plans were first used in the workplace. In a 2010 study conducted by WorldatWork, 44% of the 387 companies surveyed said they started using PTO bank type plans before 2000.
Video Paid time off
Histori
The earliest example of the time paid off, at the end of the 19th century in Australia, was by Alfred Edments giving each employee a two-week holiday with full pay, and when ill, Edments continued to pay their salaries.
Maps Paid time off
Benefits
- PTO can be an attractive benefit for healthy employees because they offer more vacation time under the PTO plan than they will be under a plan that distinguishes sick leave and vacation.
- Theoretically, employees will be honest â € <â €
- PTO usually appeals to young workers, who tend to judge work life balance as an important source of job satisfaction.
- The flexibility of PTO plans parallel to current trends in the United States has more frequent but shorter vacations.
- PTO tracking is lighter for management and employees than keeping track of personal, sick and holiday days.
- Employees who give notice two weeks before retirement or resignation can be paid for all unused and accumulated PTOs....
Loss
- At first glance, PTO may not appeal to entrepreneurs because of little direct profit. This is because employers pay employees for the time spent not working; thus, receives nothing in return for a fee.
- Employees may tend to lose work more often, which can be seen as a loss to the company and result in employee absenteeism. This can be offset by companies that set acceptable and unacceptable (acceptable) PTO standards.
- If an employee has used all of his or her allocated days to the PTO, he or she will get sick while working, which can lead to lower productivity. To compensate for the shortcomings of the remaining PTOs, he may also have to cancel the planned vacation, and take financial losses.
- If PTO hours are not used, employees can sometimes get sick near the end of the year so they can benefit from paid leave before disappearing. Employers may resist this trend by paying employees for some or all of the unused days at the end of the year or after retirement or resignation.
- Employers in the United States need to be aware of their country's employment laws related to paid leave. Otherwise, the policy may not be legally enforceable.
Labor trends
A longitudinal study conducted by WorldatWork from more than 1,000 different size organizations concluded that over the past few years, the PTO plan has become more actively used by the general workforce. In 2002, about 71% of organizations used traditional paid leave systems, and about 28% used PTO bank type systems. In 2010, the use of traditional paid payment system decreased to 54%, while the use of the PTO bank system increased to about 40% of all organizations.
The latest information can show that PTO bank type plans are difficult to implement in large organizations. In 2010, only 32% of organizations with 20,000 employees had PTO bank type systems. However, 51% of organizations with 10,000-19,999 employees have PTO bank type plans. In organizations with fewer than 100 employees, 48% have PTO bank type plans.
In a 2010 study conducted by WorldatWork, industry differences were also found. 97% of organizations in the Education industry use traditional time-laid plans with only 3% using PTO bank type systems. On the other hand, 80% of organizations in the Health Care and Social Aid industry use PTO bank type systems.
In 2012, almost one in five employees in the United States receive leave in the form of a PTO bank plan, but the contours of the policy are often poorly understood - especially outside the human resource community.
Among employees on paid leave, low-paid employees tend to have access to PTO banks rather than traditional paid vacation systems. 51% of employees in the lowest average quartile have access to vacation time, and only 9 percent of employees with the lowest wage have access to a PTO bank. 89% of employees in the highest wage quartile have access to vacation time and 28% have access to PTO banks.
There is also a difference in PTO between employment status. 9% of part-time employees have access to PTO banks, while about 23% of full-time employees do so.
14% of union organizations have access to PTO bank type plans.
Service duration
Paying time usually increases with the length of work in an organization. This provides greater benefits for employees who have been with the organization for longer.
Source: Community for Human Resource Management, 2004 Survey of SHRM Benefits.
Difference between jurisdiction
Because there is no federal requirement in the United States, states must each determine their respective rules for the time paid in the state labor law. Therefore, employers not only need to be aware, but also need to establish and follow formal written policies for paid leave. Failing to formally establish a paid leave policy may result in violation of country code and the policy can not be enforced legally.
California
Holidays are legally given per formal language at California Labor Code. Vacation can not be canceled upon receipt, and unused balance must be paid upon termination.
Pennsylvania
There is no Pennsylvania labor law that requires employers to pay employees not to work. Benefits such as sick leave, holiday payments, and severance pay are payments to employees for not working. Therefore, the employer should only pay these benefits if the employer has a policy to pay a benefit or contract with you to pay for this benefit. An employer must follow his own rules for this type of payment.
Most states, in fact, do not require unused vacation balances to be paid on termination, and very few states have formal rules that protect employees from changes in vacation policies; however, all countries must comply with federal labor laws such as Family Medical Leave Act.
New York City
In January 2014, 17 days after taking office, Mayor Bill de Blasio filed a sick leave law to extend this right for more New Yorkers, including 200,000 of whom currently have no paid sick days. The law comes into force on 1 April and applies to all workers in business with five or more employees, including those who are exempted under the previous law that applies to businesses with 15 or more workers.
References
Source of the article : Wikipedia
0 Comments