There are a few main types of paid time off policies – Accrued, Unlimited and Lump-sum.
Accrued policies – leaves are accrued for every day, week or month of service, usually with proration. The total number of days/hours an employee accrues is directly proportional to the number of days/hours worked.
Unlimited policies – no maximum amount on the number of paid time off employees can use.
Lump-sum policies – employees are given a fixed number of time off policies given all at once, without proration.