Ford Motor Co. on Thursday notified salaried employees of changes to its paid-time off policy starting in 2027, including the elimination of a program to purchase vacation time and changes to vacation milestones that the automaker said would increase paid days off for some employees.

The changes are a part of human resources-related updates the company has been rolling out over the past few years. Ford characterized the efforts as modernizing, resulting from benchmarking against other major corporations and ensuring it has a satisfactory benefits program for talent it seeks to attract.

"Ford regularly reviews our benefits to make sure they remain competitive and support our employees' health and wellness," Ford spokesperson Dave Tovar said in a statement. "We're updating our U.S. salaried time-away policies to simplify them and make them more competitive."

Ford CEO Jim Farley last week said the company is at a time of expansion as it launches a stationary energy storage business, sees increases in parts and accessories, offers fleet management and boosts software sales. Revenues, he added, are strong, even as U.S. sales dropped in the third quarter.

Senior and executive leadership roles (denoted as LL4 to LL2) will receive 25 days of paid vacation time alongside workers in lower-tiered management and general salaried roles who have 15 or more years at Ford. Those with two to 14 years receive 20 days, and employees with a year or less time at the company receive 15 days.

The changes won't reduce any employee's allotment, a memo from HR to employees noted. However, after this year, employees no longer will be able to purchase additional vacation time, with the memo noting that it was an uncommon market practice.

According to the Bureau of Labor Statistics, average vacation days for U.S. workers, depending on length of service, ranges from 11 to 20 days. Increasingly, states are adopting legal requirements for paid-time off, with Minnesota being the latest, offering state-paid benefits for up to 12 weeks.

Ford also clarified and renamed the 10 days of paid-off time traditionally called "Flexible Family Care" to "Sick & Personal time." The company additionally is rolling out for U.S. employees one platform where they can see, request and manage their paid-time off, including floating holidays, which also will help managers to support time away, according to the memo.

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