what pto means

PTO stands for "paid time off". It is a human resource management policy that provides employees with a pool of bankable hours that can be used for any purpose, such as vacation, sick time, holidays, or personal days off. PTO plans are used primarily in the United States, where there are no laws for minimum vacation time. In a large corporation, a PTO policy typically bundles employees’ personal days off, sick days, and vacation time in a single block of hours rather than specifying separate numbers of days allowable for each reason. A PTO policy might include what yearly rollover (if any) is allowed and whether or not time can be taken off in lieu of overtime. The policy should also specify whether or not an employee can cash out unused PTO when leaving the company.