2025 PTO Policy Templates for Small Teams (Free Download)

Creating a PTO policy from scratch is tedious. You know you need one, but staring at a blank document wondering "what should I include?" wastes hours you don't have.

We've done the work for you. Below are three ready-to-use PTO policy templates designed specifically for small teams, plus guidance on customizing them for your situation.

Template 1: Simple PTO Policy (Teams Under 10)

This no-frills template works for very small teams that want clear rules without complexity.

[Company Name] Paid Time Off Policy

Effective Date: [Date]

1. Eligibility

All full-time employees are eligible for paid time off. Part-time employees working 20+ hours per week receive prorated PTO.

2. PTO Allowance

PTO is available on January 1st each year. New employees hired after January 1st receive a prorated amount based on their start date.

3. PTO Types

All PTO is combined into a single bank. Use it for vacation, sick days, personal appointments, or any other reason. You don't need to specify why you're taking time off.

4. Requesting Time Off

• Submit requests to your manager via [email/Slack/PTO system]
• Provide at least 1 week notice for planned absences
• Same-day requests are allowed for illness or emergencies
• Managers will respond within 2 business days

5. Approval

Requests are approved based on:

• Business needs and coverage requirements
• First-come, first-served for conflicting requests
• No more than [X] team members may be off simultaneously

6. Carryover

Up to 5 unused PTO days may carry over to the following year. Carryover days must be used by March 31st. Any remaining carryover days will be forfeited.

7. Holidays

[Company Name] observes the following paid holidays:

• New Year's Day
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving Day
• Day after Thanksgiving
• Christmas Eve
• Christmas Day

8. Termination

Unused PTO will be paid out at your current rate upon termination. [Adjust based on state law]

Best for: Startups, agencies, and small teams that want simplicity over complexity.

Template 2: Standard PTO Policy (Teams 10-30)

This template adds structure for growing teams while staying manageable.

[Company Name] Time Off Policy

Effective Date: [Date]

Section 1: Paid Time Off (PTO)

1.1 Eligibility All regular full-time and part-time employees (20+ hours/week) are eligible for PTO benefits.

1.2 PTO Accrual

PTO accrues on the first of each month. New employees begin accruing on their start date.

1.3 Maximum Accrual PTO balances are capped at 1.5x annual allowance. Once you reach the cap, accrual pauses until you use PTO.

Section 2: Sick Leave

2.1 Allowance All employees receive 5 days of paid sick leave per year, available immediately on January 1st.

2.2 Usage Sick leave may be used for:

• Personal illness or injury
• Medical appointments
• Caring for an immediate family member
• Mental health days

2.3 Notification Notify your manager as early as possible on the day of absence. A doctor's note may be required for absences exceeding 3 consecutive days.

Section 3: Requesting Time Off

3.1 Advance Notice

3.2 How to Request Submit all PTO requests through [system/email]. Include:

• Dates requested
• Type of leave (PTO or sick)
• Coverage plan for your responsibilities

3.3 Approval Process

• Direct managers approve/deny requests
• Decisions are communicated within 3 business days
• Conflicting requests are resolved by submission date (first-come, first-served)

Section 4: Holidays

[Company Name] observes these paid holidays:

• New Year's Day
• Martin Luther King Jr. Day
• Presidents' Day
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving Day
• Day after Thanksgiving
• Christmas Eve
• Christmas Day

When a holiday falls on a weekend, it will be observed on the nearest weekday.

Section 5: Carryover and Payout

5.1 Carryover

• PTO: Up to 5 days may carry over, must be used by March 31st
• Sick leave: Does not carry over

5.2 Termination Payout Accrued, unused PTO is paid out upon termination at your current rate. Unused sick leave is not paid out.

Best for: Growing teams that need more structure but aren't ready for enterprise-level complexity.

Template 3: Remote-First PTO Policy

Designed for distributed teams with employees across time zones.

[Company Name] Remote Team Time Off Policy

Effective Date: [Date]

Philosophy

We trust our team to manage their time responsibly. This policy provides structure while respecting the flexibility that remote work enables.

Section 1: Time Off Allowance

1.1 PTO All full-time employees receive 20 days of PTO per year, available on January 1st (prorated for mid-year hires).

1.2 Sick Leave Unlimited paid sick leave for genuine illness. We trust you to use this responsibly.

1.3 Local Holidays Employees observe public holidays in their country/region of residence. Coordinate with your manager to ensure coverage.

Section 2: Requesting Time Off

2.1 Notice Requirements

2.2 How to Request

1. Check the team calendar for conflicts
2. Submit request via [system]
3. Update your calendar and Slack status once approved
4. Set up out-of-office replies

2.3 Time Zone Considerations

• Requests are processed in the requester's local time zone
• For global meetings during your PTO, provide advance notice or arrange coverage
• No expectation to check messages while on PTO

Section 3: Coverage and Handoffs

3.1 Before You Leave

• Document ongoing projects and status
• Identify a coverage buddy for urgent issues
• Set expectations with stakeholders
• Update your Slack status and calendar

3.2 Coverage Buddy System Each team member has a designated backup who can handle urgent matters. Swap coverage responsibilities fairly throughout the year.

3.3 True Disconnection PTO means disconnecting. Don't check Slack. Don't peek at email. Your coverage buddy has it handled.

Section 4: Async Communication

4.1 PTO Visibility All approved PTO appears on the shared team calendar. Check before scheduling meetings.

4.2 Slack Status Update your Slack status to show you're on PTO. Include your return date and coverage buddy.

4.3 Out-of-Office Set email auto-replies with:

• Return date
• Who to contact for urgent matters
• Clear statement that you won't be checking email

Section 5: Carryover

• Up to 5 days carry over to the following year
• Carryover must be used by Q1
• We encourage using your full PTO each year

Section 6: Company-Wide Breaks

[Company Name] closes for the following periods:

• [Winter break: Dec 24 - Jan 1]
• [Summer Friday afternoons: June-August]

These don't count against your PTO balance.

Best for: Distributed teams, remote-first companies, teams spanning multiple time zones.

How to Customize These Templates

Step 1: Choose Your Base

• Under 10 employees: Start with Template 1
• 10-30 employees: Use Template 2
• Remote/distributed: Use Template 3

Step 2: Adjust PTO Amounts

Industry benchmarks for small businesses:

Consider your competition when setting amounts. Generous PTO attracts talent.

Step 3: Check Local Laws

Before finalizing, verify compliance with:

• State/country requirements for sick leave
• Payout requirements on termination
• Carryover restrictions (some states prohibit "use it or lose it")

Step 4: Define Your Holidays

List specific holidays rather than "all federal holidays." This prevents confusion and ensures everyone knows exactly which days are off.

Step 5: Specify Your Request System

Replace "[system/email]" with your actual process:

• Small teams: "Email your manager"
• Growing teams: "Submit via Symple Team"
• Slack-heavy teams: "Post in #time-off channel"

Common Customizations

Adding Tenure-Based Increases

Years 1-2: 15 days
Years 3-5: 18 days
Years 6+: 22 days

Separate Sick Leave Bank

Some companies prefer separate sick leave:

PTO: 12 days
Sick Leave: 5 days

Floating Holidays

Instead of fixed holidays:

10 fixed holidays + 2 floating holidays
(Use floating holidays for religious observances,
birthdays, or personal significance)

Half-Day Options

PTO may be taken in half-day increments.
Morning: Start - 12:00 PM
Afternoon: 12:00 PM - End of day

Implementing Your Policy

1. Get Sign-Off

If you have a leadership team or board, get approval before announcing.

2. Communicate Clearly

Don't just email a PDF. Hold a brief team meeting to:

• Explain the policy
• Walk through how to request time off
• Answer questions

3. Make It Accessible

Store the policy somewhere everyone can find it:

• Company wiki/Notion
• Employee handbook
• Pinned in Slack

4. Set Up Tracking

A policy without tracking is just suggestions. Use:

• Shared calendar for visibility
• PTO software for balances and approvals
• Clear process everyone understands

Key Takeaways

• Start with a template - Don't reinvent the wheel
• Keep it simple - Complexity creates confusion
• Check local laws - Especially for termination payout and sick leave
• Communicate clearly - A policy only works if people understand it
• Track everything - Manual tracking leads to errors

Ready to Implement Your Policy?

Once you have your policy, you need a way to manage it. Symple Team makes PTO tracking simple for small teams - request time off, approve requests, and see who's out, all in one place.

Try Symple Team free - set up your PTO types in minutes, no credit card required.