Paid Time Off - Disadvantages

Disadvantages

• At first glance, PTO may not be attractive for employers due to little direct advantage. This is because the employer pays the employee for time spent not working; thus, receiving nothing in return for the expense.
• Employees may tend to miss work more frequently, which can be seen as a drawback for the employers and lead to absenteeism.
• If an employee has used all of his or her allotted PTO days yet becomes ill, he or she will most likely have to work while sick, which may result in lower productivity. In order to compensate for the lack of remaining PTO, he or she may also have to cancel a planned vacation, and take a financial loss.
• If PTO hours go unused, employees may sometimes call in sick near the end of the year so they can obtain the benefit of paid leave before it disappears. Employers may counter this tendency by paying employees for some or all of their unused days at year-end or upon retirement or resignation.
• Employers in the United States need to be aware of their state labor law regarding paid time off. If not, the policy might not be legally enforceable.