HR Glossary / PTO

PTO (paid time off), or personal time off, refers to compensated time off of work. It includes absences for various reasons such as vacations, sick days, and personal time away from work.


What Is the Difference Between PTO and Vacation?

Although the terms PTO and vacation are often used interchangeably, there is a slight distinction to be made: PTO includes vacation days, while vacation does not necessarily include PTO.

Vacation, or paid vacation days, refers to any time off that has to be given to an employee in accordance with local laws.

PTO instead includes days off that are required by the law as well as any other additional time off offered by the employer, including sick days, personal time off, additional days of vacation.

Is PTO Mandatory?

In Canada, employees are entitled to 2 weeks of vacation per year of employment as a baseline. Therefore, an employer must provide 2 weeks of paid vacation to every employee who has worked for 12 consecutive months in the organization. The vacation pay is calculated as a percentage of the gross wages earned during the year.

Regulations regarding PTO vary depending on the location of the employer.

Who Is Eligible for PTO?

In Canada, all employees are eligible for PTO, regardless of their employment status, as long as they have worked for the required amount of time.

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