Ogletree: three critical issues when rolling out unlimited PTO globally
Key points
- Unlimited PTO outside the US does not remove the duty to track statutory leave
- Replacing more generous contractual PTO is generally a detrimental change needing consent
- Consultation in some countries can take two to four weeks
An Ogletree article says that offering unlimited PTO outside the US does not remove the need to track statutory minimum leave, carryover and payout on termination. The article flags three issues: generous statutory leave regimes, changes to contractual PTO entitlements, and consultation. It says replacing more generous contractual PTO with unlimited leave is generally treated as a detrimental change requiring employee consent, and that consultation in some countries can take two to four weeks.
What employers should do
- Before rolling out unlimited PTO abroad, check each country's statutory minimum leave, carryover and payout rules
- Assess whether changing existing contractual PTO is a detrimental change requiring employee consent
- Allow two to four weeks for local consultation where required
Original report: Ogletree ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.