Company refusing to payout PTO after resigning?

Hey all, so I’m leaving my company this month and I have the legal minimum of 10 days PTO per year. However my company found some legal loophole where they can allocate 5 of those PTO days themselves for “company holidays” so that I’m only left with 5 days personal leave per year. So now that I’m resigning, they are allowing me only to claim those 5 days PTO and refusing to allow me the extra 5 days off that have not been used yet in the year. They say because those days are allocated by the company and I’m not allowed to personally claim them myself. Everything I’ve read online is the absolute minimum is 10 days per year and employees have the right to claim unused PTO in cash or personal leave when retiring. I have used 0 days. Is this legal? What steps can I take to get those 5 days pay?

7 comments
  1. >However my company found some legal loophole where they can allocate 5 of those PTO days themselves for “company holidays” so that I’m only left with 5 days personal leave per year.

    Common and legal.

    >So now that I’m resigning, they are allowing me only to claim those 5 days PTO and refusing to allow me the extra 5 days off that have not been used yet in the year.

    Yep. Although honestly I’m not sure how that works if you’re not there for the “company” holidays…

  2. >employees have the right to claim unused PTO in cash or personal leave when retiring.

    citation needed.

    cashing out is absolutely not a legally protected thing here.

    You may have a better leg to stand on about them forcing when vacation days will be taken … when you will not be able to take them on those days because you won’t be working there. That would seem to override their ability to pick for you.

  3. Cashing out leave upon resigning in Japan is very rare.

    I learned the hard way when I quit my first job here and had leave allowance left over.

    Most people factor in the remaining annual leave their notice period.

  4. IANAL, but are these designated holidays during the month you are quitting?

    Are they trying to make it so your last paycheck does not get messed with? Could just be a simple attempt to avoid some payroll math.

  5. From what I’m reading:

    会社は、時季変更権を行使して有給休暇の取得日を退職日以降に指定することはできません。

    The company can’t set dates post-termination for use of PTO.

    https://www.vbest.jp/roudoumondai/columns/2967/

    In other words you have the right to use all 10 days. If there is an HR or compliance department, I’d contact them.

  6. I’d be thrilled to get 5 days of free pay. Sounds like getting the other 5 will be more trouble than it’s worth, but you may enjoy the havoc, good luck!

  7. All common and legal. Companies rarely pay out PTO in Japan (and actually my last company in the UK didn’t, and my current US company doesn’t – they strongly encourage people to actually take time off).

    In Japan people basically use up PTO when they resign (ie, I’m leaving at the end of the month and my last day in the office is xxx).

Leave a Reply
You May Also Like