[finance-geek]

Some of the nefarious reasons in the article and comments may well be true -- but there is a simple accounting reason for "unlimited" vacation policies -- companies do not need to pay workers for accrued vacation days un-taken.

In some states and countries, use-it-or-lose-it policies are not legal, so employees always accrue the days, often carrying them from year to year. It is a bit unfair since the employee leaving hits the company with a big payout (though the payout is just payout that should have happened long ago.) On the other hand it is very fair, as i've been stuck in some companies where my boss would not let me take vacation, so the payout was the least they could do.

[greenyoda]

"It is a bit unfair since the employee leaving hits the company with a big payout"

Paying out for unused vacation days is the only fair thing to do. After all, the company got all those unused vacation days as extra work days.

[finance-geek]

I noted it was unfair because when the employees leave, the cash-out happens at the employee's final salary (which may be larger (even 2x!) the salary at the time of accrual)