Create a bespoke document in minutes, or upload and review your own.
Get your first 2 documents free
Your data doesn't train Genie's AI
You keep IP ownership of your information
Paid Time Off Policy
"I need a paid time off policy that includes 25 days of annual leave, 8 bank holidays, and 5 days of sick leave, with the option to carry over up to 5 unused days to the next year. All payments should be in GBP."
What is a Paid Time Off Policy?
A Paid Time Off Policy sets out how employees can take paid leave from work, combining holiday entitlement, sick days, and other approved absences. It builds on the UK's statutory minimum of 28 days annual leave (including bank holidays) while explaining your company's specific rules and procedures.
The policy details important practical elements like how to request time off, notice periods, holiday pay calculations, and rules around carrying over unused days. It also covers your company's approach to other paid absences such as compassionate leave, jury service, and parental leave entitlements under UK employment law.
When should you use a Paid Time Off Policy?
Use a Paid Time Off Policy when establishing or growing your business in the UK to set clear expectations around leave entitlements. It becomes essential once you hire your first employee, helping prevent disputes and ensuring compliance with UK employment law requirements for annual leave, sick pay, and other statutory entitlements.
The policy proves particularly valuable during busy periods like summer holidays or December, when multiple leave requests need fair handling. It also protects your business during staff absences by establishing clear procedures for booking time off, managing workload coverage, and maintaining accurate leave records for payroll and HR purposes.
What are the different types of Paid Time Off Policy?
- Standard Accrual Policy: Employees earn leave gradually throughout the year, typically building up days each month worked
- Annual Allowance Policy: Full leave entitlement granted upfront at the start of each leave year
- Flexible PTO Policy: Combines different types of leave (holiday, sick, personal) into one comprehensive bank of days
- Industry-Specific Policies: Adapted for sectors like retail or hospitality with seasonal peaks and shift patterns
- Enhanced Benefits Policy: Offers more than statutory minimums, often including additional leave for length of service
Who should typically use a Paid Time Off Policy?
- HR Directors and Managers: Draft and maintain the Paid Time Off Policy, ensuring it aligns with employment law and company culture
- Line Managers: Implement the policy daily, approving leave requests and managing team coverage
- Employees: Follow the policy's procedures when requesting and taking leave, tracking their entitlements
- Payroll Teams: Process holiday pay and maintain accurate leave records
- Legal Advisers: Review policies to ensure compliance with UK employment legislation and help resolve disputes
How do you write a Paid Time Off Policy?
- Current Practices: Review existing leave arrangements and identify any historical issues or pain points
- Legal Minimums: Confirm statutory requirements for annual leave, bank holidays, and other paid absences
- Business Needs: Consider peak periods, minimum staffing levels, and notice periods for leave requests
- Employee Input: Gather feedback on preferred booking systems and current leave management challenges
- Policy Details: Define accrual rates, carry-over rules, and booking procedures using our platform's guided template
- Communication Plan: Prepare clear guidance for staff on how to use the new policy effectively
What should be included in a Paid Time Off Policy?
- Statutory Entitlements: Clear statement of minimum annual leave (28 days including bank holidays) and calculation method
- Leave Year Definition: Specified dates for the holiday year and rules for new starters/leavers
- Request Procedures: Detailed process for booking leave, including notice periods and approval system
- Carry-Over Rules: Conditions for transferring unused leave to next year, including statutory limitations
- Pay Calculations: Formula for holiday pay, including treatment of overtime and commission
- Special Leave Types: Provisions for sick leave, compassionate leave, and other paid absences
What's the difference between a Paid Time Off Policy and an Acceptable Use Policy?
A Paid Time Off Policy is often confused with a Corporate Policy, but they serve distinct purposes. While both are internal company documents, they operate at different levels of organizational governance.
- Scope and Focus: A Paid Time Off Policy specifically details leave entitlements and procedures, while a Corporate Policy sets broader company-wide standards and practices
- Legal Requirements: PTO policies must align with specific UK employment laws about minimum leave entitlements, while Corporate Policies cover wider regulatory compliance areas
- Implementation Level: PTO policies require day-to-day management by line managers and HR, whereas Corporate Policies typically need board-level oversight
- Update Frequency: PTO policies often need regular updates to reflect changing leave legislation, while Corporate Policies typically remain more stable over time
Download our whitepaper on the future of AI in Legal
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it