NEW YORK - Microsoft is reportedly doing away with the number of vacation days employees can take under the company's new "Discretionary Time Off", or DTO policy.
"It's another name for unlimited paid time off," says HR specialist and NY Post career advice columnist Greg Giangrande. "And the reason why companies do that is to shift the burden and shift the responsibility to employees to manage their own time, where the employer doesn't have to keep track administratively."
According to the Verge, Microsoft's U.S. workforce, which is around 122,000 employees, can now take as much time off as they want.
They'll also get 10 corporate holidays, along with the standard allotted sick time and bereavement, and in addition to COVID-19 sick pay. Some employers in the state are required to provide at least five or 14 days of job protection and pay for those who contract the virus.
"So for many employers, they're looking at having to pay out millions of dollars to people who leave the company when they leave, and if you have unlimited time, there's no accrued time. So you essentially take that liability down to zero," Giangrande adds.
While employees no longer have to 'use it or lose it', the DTO has to be approved by a manager. Giangrande adds while the policy gives workers more control, it’s not without its downsides.
New Yorkers that spoke with FOX 5 New York ultimately thought the idea sounded like a good move for both companies if it's not abused.
"Ultimately, I think it would be a good thing since most Americans are really overworked," explained one New Yorker.
It should be noted -- this is also in addition to COVID-19 sick pay. Some employers in New York are required to provide at least 5 or 14 days of job protection and pay for those who contract the virus.