According to Microsoft, it is changing its vacation policy to provide US employees unlimited time off. The US’s full-time employees will be the only group involved in the new system. The new policy was disclosed in an email sent to staff members by Kathleen Hogan, Microsoft’s chief people officer.
It will be available to all paid US employees and is referred to as “Discretionary Time Off” by the company. The changes, which will take effect on January 16th, will eliminate the waiting period for vacation accrual for even new Microsoft staff.
All you need to know about Microsoft’s New Policy!
In addition to limitless vacation days, employees will also be granted 10 corporate holidays, mental health and sick days, absence leaves, and time off for jury duty or mourning. There will be a one-time compensation in April for all accrued vacation days will be paid out in full to the employees who still have unused vacation balances.
The US only offers unlimited vacation time to salaried workers, though. The change will not apply to anyone who works on an hourly basis or who lives outside of the US. According to the corporation, this is because it is more difficult to offer hourly workers unlimited vacation time due to state and federal wage and hour requirements.
Due to the fact that every country has a separate set of regulations, employees who reside abroad are not covered by the policy. The unrestricted vacation time will not be available to Microsoft hourly workers or those working outside of the US.
Microsoft is by no means the first significant IT business to implement unlimited vacation days. Oracle, Salesforce, LinkedIn, and Netflix, which are owned by the company, all provide employees with unlimited vacation time. The new rule follows Microsoft’s decision to permit more staff to work permanently from home and the $1,500 pandemic incentive for staff members.