Do I need a PTO policy if I have five employees?

A short written policy saves you from answering the same request in chat every week, and it makes sure everyone gets the same answer. Rules on leave vary by state, so check yours.

Should PTO be unlimited?

That is a business choice. Whichever you choose, write down who approves requests and how much notice you expect, because those are the questions people ask.

Who should own the policy?

One named person, usually the founder or the person who runs operations, with a date for the next check.

PTO policy template for a small team

A PTO policy only works if people can find the answer to 'can I take this day?' without asking you. Fill in the blanks below, give each answer an owner and a date, and keep the questions at the end as your approved answers.

A template with blanks, not legal advice. Rules on pay, leave and data vary by state, so check yours.

The template

Who this covers

This policy covers [full-time / part-time / contractors: choose] employees of [company name].
Time off starts to build up on [start date / first day / after 90 days: choose].

How much time off

Each full-time employee gets [number] days of paid time off per year, plus [number] company holidays listed at [link].
Time off builds up [per pay period / on January 1 / monthly: choose].
Unused days [roll over up to [number] days / do not roll over / are paid out: choose; rules on accrued vacation vary by state, so check yours].

How to ask

Ask at least [number] days ahead in [tool or channel] and name who covers your work.
Your manager answers within [number] business days. A request is approved when it is marked approved in [tool], not when someone says yes in chat.

Sick time and other leave

Sick time is [separate from / part of] PTO. Tell [person] as early as you can on the day.
Leave for [family, medical, jury duty, bereavement] follows [link to the rules] and is decided by [person].

Who owns this policy

Owner: [name]. Last confirmed: [date]. Check again by: [date].

The ten questions your team will ask

Write each answer once, with an owner and the date you last confirmed it. These ten answers are what a bot or a shared FAQ should answer from.

1.How many PTO days do I get?
Answer: [The number per year, and whether it differs by role or years of service.]
Owner: [name]. Last confirmed: [date].
2.When can I start taking time off?
Answer: [Your waiting period, if any, and when days become available.]
Owner: [name]. Last confirmed: [date].
3.How far ahead do I need to ask?
Answer: [The notice you expect, and what counts as short notice.]
Owner: [name]. Last confirmed: [date].
4.Who approves my request, and how long does it take?
Answer: [The approver, the tool, and the answer time.]
Owner: [name]. Last confirmed: [date].
5.Can I take a long break, like two weeks in a row?
Answer: [Your limit, and who needs to agree.]
Owner: [name]. Last confirmed: [date].
6.Do unused days roll over or get paid out?
Answer: [Your rule, with the cap if there is one. Check your state's rules on accrued vacation.]
Owner: [name]. Last confirmed: [date].
7.Are company holidays included?
Answer: [The list, and whether a holiday during PTO uses a day.]
Owner: [name]. Last confirmed: [date].
8.What if I am sick?
Answer: [How to report it, and whether sick time is separate.]
Owner: [name]. Last confirmed: [date].
9.Can I take a day off during a busy week or launch?
Answer: [Blackout dates, if any, and how you decide.]
Owner: [name]. Last confirmed: [date].
10.What happens to my PTO if I leave?
Answer: [Your payout rule, written once and checked against your state's rules.]
Owner: [name]. Last confirmed: [date].

Before you publish it

Check your state's rules on accrued vacation and sick leave before you publish.
Put the policy and the ten answers in one place people already use.
Test your bot or FAQ with the ten questions before you rely on it.

Want to check a bot against these questions? Use the free honesty test, or turn the answers into a shareable FAQ with the team FAQ builder.

Want early access and new checklists by email?

Leave your email and we write to you when your spot is ready. Or sign in now and the first 100 founders start right away.

Common questions

A short written policy saves you from answering the same request in chat every week, and it makes sure everyone gets the same answer. Rules on leave vary by state, so check yours.
That is a business choice. Whichever you choose, write down who approves requests and how much notice you expect, because those are the questions people ask.
One named person, usually the founder or the person who runs operations, with a date for the next check.