Unlimited PTO is a Scam. Why We Returned to 'Fixed Vacation' and Force-Fire Employees Who Don't Take It.

The "Guilt Culture" Burnout

My best Senior Engineer—let's call him Marcus—quit last year. I was shocked. He was the hardest worker I had.

In the exit interview, he broke down. "I haven't taken a real week off in 2 years," he said.

I checked the HR system. He had taken exactly 0 days.

"Why?" I asked. "We have Unlimited PTO. You could have taken a month off."

"I noticed the founders never took time off," he said. "And with Unlimited PTO, I didn't want to look like the slacker. I didn't know what was 'allowed', so I just took nothing."

Unlimited meant Undefined. And in a high-performance culture, Undefined rounds down to Zero.

We scrapped the policy the next day. Here is why Unlimited PTO is a scam.

Section 1: The Balance Sheet Trick

Companies love Unlimited PTO for one dark financial reason: It wipes "Accrued Vacation Liability" off the books.

In a Fixed PTO system (e.g., 20 days/year), if you quit with 10 unused days, the company must pay you for those days. It's a debt they owe you.

With Unlimited PTO, you accrue nothing. If you quit, you get $0. It is a financial accounting hack masquerading as an "Employee Perk."

The Data: Study after study shows that employees with Unlimited PTO take fewer days off (avg 13 days) than those with Fixed PTO plans (avg 15-20 days).

Section 2: The Psychology of "Undefined" Rights

Human beings crave clear boundaries. "Unlimited" creates a social signaling game.

The Hero Complex: Without a quota, taking time off feels like a withdrawal of social capital. "Is taking 3 weeks too much? Will I look uncommitted?"

Humans naturally mimic the leader. If the CDO is a workaholic who never sleeps, the team mimics that behavior out of fear. The result is a culture of martyrdom and silent burnout.

Section 3: The "Minimum Vacation Mandate"

We switched to a radical new policy: "Minimum PTO."

You must take 15 days a year. If you don't:

• You forfeit your eligibility for a bonus.
• We literally lock you out of Slack and Email validation.

The ROI: "Rest" is not a lack of work; it is part of the performance cycle. High-end athletes rest. High-end engineers need to rest too. A well-rested Senior writes better code and shorter emails.

Section 4: Treating Rest Like a Sprint

We now plan vacations like we plan Product Launches.

We have coverage plans. We have handoffs. We have strict "Out of Office" protocols.

The Professionalism: Taking time off without the house burning down is the ultimate proof of a Senior Leader's competence. It proves you have delegated well and built a resilient system.

Conclusion

Give your team a number. Be explicit.

"Unlimited" is just a cowardly way for management to avoid setting expectations and to save money on exit packages. Don't fall for it.