Question

why are vacations and severance pay considered as a paid time off

Answer 1

Paid Time Off or PTO is considered to be an effective plan made by many organisations in the USA which follows a policy of providing several hours off to the employees either in the terms of vacation off, severance off or anything time off in which the employee wants to do whatever he/she wishes to desire. PTO is considered one of the most attractive benefit provided to the healthy employees because vacations and severance paid leaves are offered in it. Under a PTO plan, a vacation plan is offered to them where the employee could a particular no. of days off and he would be getting a salary or pay of it because of the company's policy as every employee enjoys several hours paid off which depends upon different strategies of different companies. Severance pay on the other hand, is considered as the compensation or the benefits which the employee gets after his/her employment. It includes many beneficials like outplacement assistance, health benefits etc. This features are considered to be a part of Paid Time Off because companies consider the human resource as a strategic resource. By offering such attravtive schemes and incentives, many more employees would tend to join the organisation because of the attractive offers and thus the company would enjoy the advantages of competitive benefits.