VTO, or Voluntary Time Off, lets employees take time off without dipping into their paid time off (PTO) or vacation days. It’s an extra perk on top of standard leave benefits.

Unlike PTO, VTO doesn’t reduce an employee’s accrued vacation or sick leave. It’s a great option for those who want to take a break, handle personal matters, or pursue other interests without using their paid time.

Companies handle VTO differently. Some offer it on a first-come, first-served basis, while others rotate opportunities to keep things fair. It’s a win-win—employees get more flexibility, and businesses can manage staffing levels efficiently.

Why do companies offer VTO?

Employers offer VTO for a few reasons. First, it gives employees more control over their schedules, promoting a better work-life balance.

For businesses, VTO helps cut labor costs during slow periods without resorting to layoffs or reducing regular hours. Employees can voluntarily take unpaid leave, allowing companies to adjust payroll expenses while keeping operations flexible.

VTO also boosts morale. It shows employees that the company values their well-being, which can increase job satisfaction, loyalty, and trust. Plus, it helps businesses avoid the negative effects of forced time off or layoffs.

How does VTO work?

VTO is optional—employees decide whether to take it. The process varies by company, but here’s the general idea:

  • Employers announce when VTO is available.
  • Employees request time off, usually on a first-come, first-served basis or through a rotation system.
  • Approval depends on business needs and staffing levels.
  • Employees don’t get paid during VTO but keep their job security and benefits.

Some companies set rules on who qualifies, like requiring employees to work a certain number of hours before being eligible. Others make VTO available to everyone.

Benefits of VTO

VTO benefits both employees and employers:

  • Cost Management: Helps businesses reduce labor costs during slow periods.
  • Operational Flexibility: Lets companies adjust workforce levels as needed.
  • Employee Morale: Shows employees the company cares about their well-being.
  • Work-Life Balance: Gives employees extra time to handle personal matters or just recharge.
  • Job Security: Keeps employees in their roles without the risk of layoffs.
  • Retention & Loyalty: A flexible time-off policy can improve job satisfaction and reduce turnover.
  • Layoff Prevention: Allows companies to manage workforce levels without letting people go.

Types of VTO

VTO comes in different forms depending on business needs and employee preferences:

  • Seasonal VTO: Offered during predictable slow periods, like after the holidays.
  • Intermittent VTO: Available on a day-to-day basis when short-term workload dips occur.
  • Extended VTO: Allows for longer unpaid leave, useful for personal matters or extended travel.
  • Rotational VTO: Ensures fairness by rotating VTO opportunities among employees.
  • Emergency VTO: Used during unexpected downturns or crises to quickly adjust staffing.

Some companies let employees use VTO in small increments throughout the year. Others offer it for specific reasons, such as:

  • Volunteering or pro bono work
  • Personal development
  • Civic responsibilities
  • Disaster response efforts
  • Team-based volunteer initiatives

VTO is a flexible policy that benefits both employees and employers. When managed well, it keeps workplaces efficient, employees happy, and businesses running smoothly.

Keep reading