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PTO Payout Upon Termination

As you are all aware, we entered a new era of PTO policy right after the Labor Day holiday. Effective 9/5/2021, we changed our policy that an employee must officially resign from the company in order to get any accrued and earned PTO paid out upon termination. (Unless otherwise directed by state law).

Coming up on one month since this policy was implemented… we just wanted to update you on a few things.

  • First, it is really important that if an employee has notified you that they quit, regardless of how they notified you, you should use the Termination Reason: RESIGNATION when you go to terminate the employee in UKG.

  • Keep in mind, under at-will employment law, an employee doesn’t need to give any length of notice - as long as they inform you in some manner that they intend to never come back. So, for example, the employee that says “I quit”, or texts you and says “I won’t be back - can no longer work the schedule”, or leaves you a post it note that says “I resign”… are all examples of someone “giving notice”. While it’s disappointing and not very professional to just up and quit, these could all be used in the unemployment world as “giving notice” and therefore a resignation.

  • The employee who stops showing up with no communication, especially after you’ve attempted to call or text them, is definitely NOT a resignation and should be handled as a true no call no show/job abandonment situation and would make them ineligible, if applicable, to not have their PTO paid out. A good practice is to use the Notes field to capture your attempts to contact the employee either via phone or text, (ie. “Called the employee on 9/26, texted on 9/27, have not heard back as of 9/28. TR 9.28.21”). Just be sure to only include facts, not opinions as this information is discoverable.

Remember, this new policy is a cost savings to your location when applied to those who truly abandon their job. If you ever have questions about how a termination should be coded in the system, by all means, just ask your HR team! We are here to help!

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