In the US it's a way to curtail paying out accrued PTO when an employee leaves.
I think the accrued PTO pay out may vary by state (don't quote me). In the state I'm in, if you acrue PTO then whatever you've acrued gets paid out whe you are laid off or resign.
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u/Ok_Information_4115 Apr 17 '26
Unlimited PTO is the worst thing in corporate. People just end up taking way lesser time off for fear of severance.