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Even with generous PTO policies, accommodating every employee's vacation request can be challenging due to operational needs. Businesses must often restrict the number of vacation days taken simultaneously to ensure continuity. Additionally, vacation awards may be influenced by the number of employees on leave for reasons like sickness or personal issues. A clear written vacation policy should outline any limitations and establish a fair method for managing competing time-off requests. However, there will inevitably be times when vacation requests must be denied. Communicating this disappointing news can be difficult, but it is an essential part of effective leadership.