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It’s often potentially a slight financial trick as well. At least it can be. Depending on structuring it can a tinnnnnny one time pickup on profitability due to not having a vacation accrual balance sheet liability any more. Aka 1)when you leave no payout, and 2) the one time reversal of that acrual can(*) impact profit. Do the math with payroll at 40% of revenue that can be a ~2.5% one time pickup in profit margins. Slightly less tax adjusted and fully rolled back.

Just saying it could be even more nefarious than you intended to convey :)



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