What is Discretionary Time Off?

Discretionary time off (DTO) is a leave policy that allows employees unlimited paid time off each year. This system provides staff with the flexibility to take leave as needed – whether for vacation, appointments, or other personal matters. While DTO does not impose strict limits, it often includes recommended guidelines, such as not taking more than three consecutive weeks off.

Depending on the company, an employee may need to get prior approval to take discretionary paid time off. Approval may depend on the number of days requested and the needs of the company. Unlike traditional vacation day policies, employers don’t pay back employees for any unused DTO when they leave the company.