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Paid Time Off Policy
I need a Paid Time Off Policy that outlines the accrual and usage of leave for employees, including annual leave, sick leave, and public holidays, in compliance with Singapore's employment laws. The policy should also address the process for requesting leave and any restrictions on carrying over unused leave to the next year.
What is a Paid Time Off Policy?
A Paid Time Off Policy outlines how employees can take paid leave from work, combining vacation days, sick leave, and personal time into one flexible system. Under Singapore's Employment Act, companies must provide at least 7-14 days of paid annual leave, depending on years of service, plus paid sick leave and public holidays.
The policy sets clear rules about requesting time off, approval processes, and how PTO hours accumulate. Many Singapore employers now prefer this unified approach over separate leave types, as it simplifies tracking and gives staff more freedom to manage their time while ensuring business operations run smoothly.
When should you use a Paid Time Off Policy?
Implement a Paid Time Off Policy when establishing a new company in Singapore or updating outdated leave management systems. This structured approach becomes essential as your workforce grows beyond 10 employees, making it harder to track different types of leave informally.
The policy proves particularly valuable during company expansion, when merging teams, or adapting to hybrid work arrangements. It helps prevent leave disputes, ensures compliance with Singapore's Employment Act requirements, and creates transparent guidelines for both managers and staff. Many organizations introduce it during their annual policy review or when switching to new HR management systems.
What are the different types of Paid Time Off Policy?
- Traditional Separate Tracking: Maintains distinct balances for annual leave, sick leave, and personal days - common in government agencies and large corporations
- Unified Bank System: Combines all leave types into one pool of days - popular among tech startups and multinational companies
- Hybrid Structure: Keeps sick leave separate but combines vacation and personal days - preferred by healthcare and education sectors
- Accrual-Based Model: Leave hours accumulate monthly based on service length - suits businesses with variable staffing
- Unlimited PTO: Offers flexible time off with approval requirements - emerging trend in creative industries and consulting firms
Who should typically use a Paid Time Off Policy?
- HR Directors and Managers: Draft and maintain the Paid Time Off Policy, ensuring compliance with Employment Act requirements
- Company Leadership: Reviews and approves policy terms, balancing employee benefits with business needs
- Line Managers: Handle leave requests, track team availability, and enforce policy guidelines daily
- Full-time Employees: Primary beneficiaries who accumulate and use PTO according to policy terms
- Part-time Workers: Receive pro-rated benefits based on working hours, as mandated by Singapore law
- Payroll Teams: Process leave-related payments and maintain accurate leave balance records
How do you write a Paid Time Off Policy?
- Legal Requirements: Review Singapore's Employment Act guidelines on minimum leave entitlements and public holidays
- Company Data: Compile current workforce size, employee categories, and existing leave practices
- Industry Benchmarks: Research competitive PTO offerings in your sector and region
- Operational Needs: Map peak business periods and minimum staffing requirements
- Leave Categories: Define types of leave to include (annual, sick, parental, compassionate)
- Approval Process: Establish clear request procedures and authority levels
- Documentation: Set up tracking systems for leave balances and attendance records
What should be included in a Paid Time Off Policy?
- Eligibility Statement: Define which employees qualify for PTO benefits under Singapore's Employment Act
- Leave Entitlements: Specify minimum annual leave days, sick leave, and public holiday provisions
- Accrual Method: Detail how and when leave hours accumulate, including pro-rated calculations
- Request Procedures: Outline the formal process for submitting and approving leave requests
- Carry-Forward Rules: State policies on unused leave and maximum accumulation periods
- Notice Requirements: Specify minimum notice periods for different leave types
- Medical Certificates: Include rules about medical proof for sick leave claims
- Payment Terms: Explain how leave pay is calculated and when it's disbursed
What's the difference between a Paid Time Off Policy and a Corporate Policy?
A Paid Time Off Policy differs significantly from a Corporate Policy, though they're often confused. While a PTO Policy specifically addresses leave management and time-off benefits, a Corporate Policy serves as a broader framework governing overall company operations and standards.
- Scope and Focus: PTO Policies deal exclusively with leave entitlements, accrual rules, and time-off procedures. Corporate Policies cover multiple aspects of business operations, including conduct, ethics, and general workplace guidelines.
- Legal Requirements: PTO Policies must strictly align with Singapore's Employment Act leave provisions. Corporate Policies have more flexibility in content but need to address broader regulatory compliance.
- Implementation: PTO Policies require specific tracking systems and immediate HR oversight. Corporate Policies typically need broader departmental coordination and organizational-wide implementation strategies.
- Updates and Changes: PTO Policies change with employment law amendments. Corporate Policies evolve with company growth and strategic shifts.
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