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In the video, Cody Engel, a staff software engineer, discusses navigating unlimited vacation policies. He highlights that employees often feel uncertain about how much time they can actually take off. He notes that with unlimited vacation, unlike traditional PTO, there is no accrued time that can be cashed out; rather, employees are encouraged to take time off as needed without fearing loss of benefits. Engel explains that employers also benefit from offering such policies, as it promotes flexibility and encourages employees to recharge when necessary. There’s generally no defined limit to the time off under unlimited vacation, which can create confusion about appropriate use.