What does paid time off typically include?

Paid time off usually encompasses various forms of leave that employees can use at their discretion. This includes vacation days and personal reasons for absence, allowing individuals flexibility in how they manage their time away from work. Businesses often combine different types of leave—such as vacation, personal days, and sometimes even sick leave—into a single pooled category known as paid time off (PTO).

While leave for illness is an essential part of an employee's benefits package, it is often categorized separately under sick leave rather than lumped into the broader category of paid time off. Unscheduled leave generally refers to last-minute absences that may not fall under a planned or scheduled time off, making it different from the more organized approach to vacation days and personal reasons. Termination procedures are entirely unrelated to paid time off, as they deal with the ending of employment rather than the allowances for time away from work during employment.