The biggest software company in the world, Microsoft, is doing away with its four-week vacation policy and is coming up with a plan allowing its US-based workforce unlimited paid time off.
A "discretionary time off" approach that allows employees to take time off as needed will replace the tech giant's paid time off model. Based on the memo that is available with the media, Kathleen Hogan, Microsoft's chief people officer, informed her staff of the news in an email.
"Discretionary time off" is paid time off granted to professional organizations for a noteworthy achievement or effort that contributes to the organization’s mission, goals, or objectives.
"How, when, and where we do our jobs has changed dramatically,” the memo added further "And as we've transformed, modernising our vacation policy to a more flexible model was a natural next step," explains Hogan in the internal memo.
Based on the reports, the change will come into force on January 16th meaning even new Microsoft employees don't need to wait to accrue vacation time anymore.
"Microsoft will offer 10 corporate holidays, leaves of absence, sick and mental health time off, and time away from jury duty or bereavement alongside this new unlimited time off policy. Employees that have an unused vacation balance will get a one-time payout in April."
As per the news on LinkedIn, the software giant said it adopted the system, which will save the cost involved in the administration, well that also ensures more flexible work schedules. While some celebrate unlimited vacation policies, critics say they can often have the reverse effect, in that workers will take less time than they would with a limited amount of vacation days.
It is pertinent to mention here that Microsoft is not the first tech giant to offer unlimited vacation days. Salesforce, Oracle, Netflix, and LinkedIn, which are owned by Microsoft, all have provided their employees with unlimited time off.