Toni Dimaano Tech 01.12.2023 05:Jan AM EST

Microsoft's New Vacation Policy Give Employees Unlimited Time Off

Microsoft is offering all US employees unlimited vacation time, according to a memo emailed by Kathleen Hogan, the tech giant's chief people officer.

According to The Verge, all salaried US employees will be eligible for Microsoft's unlimited vacation time, which the company is referring to as "Discretionary Time Off."

Microsoft's Drops Its 4-Weeks-A-Year Vacation Policy

The largest software business in the world, Microsoft, is abolishing its four-week vacation rule and giving US employees an unlimited amount of paid time off.

The tech giant's paid time off program will be replaced by a discretionary time off system that lets employees take time off as needed.

Paid time off given to a professional staff member for a remarkable effort or achievement that advances the mission, goals, or objectives of the organization is known as discretionary time off.

"How, when, and where we do our jobs has dramatically changed, and as we've transformed, modernizing our vacation policy to a more flexible model was a natural next step," Hogan details.

Even new Microsoft employees will not have to wait to accrue vacation time anymore thanks to the changes, which take effect on January 16th.

Along with this new limitless time off policy, Microsoft will continue to give 10 corporate holidays, leaves of absence, sick and mental health days, and time off for jury duty or mourning.

Additionally, there will be a one-time compensation in April for workers who have unused vacation time remaining.

This Policy Is Not Applicable For Those Outside The US

The major software company claimed that it implemented the approach in response to more flexible work hours since it reduces administrative costs as well.

While some people applaud policies that allow for unlimited vacation time, critics claim that they frequently have the opposite impact.

This is because employees tend to use their time off less than they would if they had a set number of vacation days, NDTV reports.

However, it is important to note that employees outside the US and hourly workers at Microsoft will not be provided with unlimited vacation time.

According to Microsoft, it is challenging to provide hourly workers with limitless vacation time due to federal and state wage and hour requirements.

Additionally, due to various rules and regulations in other countries, those who reside outside of the US will continue to get their present vacation benefits.

Following Microsoft's decision to permit more employees to work permanently from home and the $1,500 pandemic incentive offered to staff members, the new policy was implemented.

Salesforce, Oracle, Netflix, and LinkedIn, which is owned by Microsoft, all give employees an unlimited number of vacation days, therefore the software giant Microsoft is not the first to implement the policy.

Meanwhile, other U.S. employers are now restricting employees' liberties and requiring that they report to company offices at least four days per week, CBS News notes.