Guides

Vacation policy template for a team of 10

A one-page policy answers most time-off questions before they are asked. Copy the template below, fill in the bracketed parts, and have someone who knows your state’s rules read it before you share it. Notes in italics explain each choice; delete them in your version.

Template

Who this covers

This policy covers all [full-time / full-time and part-time] employees of [Business Name].

Note: if part-time staff get PTO, say whether it is prorated by hours worked.

How much time off you get

You earn [80] hours of paid time off each year, added in equal amounts each pay period ([3.08] hours every two weeks). You start earning on [your first day / after 90 days].

Note: use our PTO accrual calculator to get the per-paycheck number for your payroll schedule.

Sick time

You also get [40] hours of paid sick time each year, available on [January 1 / your first day]. Sick time is for your own illness or caring for a family member.

Note: many states and cities set minimum sick leave rules. Check yours first.

Asking for time off

Ask at least [two weeks] ahead for vacation of three days or more, and [two days] ahead for a single day. Requests are approved in the order they arrive. If too many people ask for the same days, [the earlier request wins / we take turns over the year].

Holidays

We close on [New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas Day]. These are paid and do not come out of your PTO.

Unused time

You can carry up to [40] hours into the next year. Hours above that are [forfeited / paid out] on January 1.

Note: see carryover policy examples for other options.

Leaving the company

When you leave, unused vacation hours [are paid out / are not paid out] [unless state law requires it].

Questions

Ask [name or role]. You can see your balance anytime in [your time-off tracker].

Rolling it out

• Set up balances for everyone on the day the policy starts, including any time they already have.
• Send the policy by email and ask each person to reply that they read it.
• Review it once a year, ideally in the fall before people plan holiday travel.