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In the case of situations like those, do contracts with unlimited PTO have a clause with "you cannot fire X employee for being too much on vacation"? Speaking from a place of complete and utter ignorance.

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Do US-based Microsoft employees even have employment contracts? Washington is an 'at will' employment state.

The concept of at will employment baffles me as a European, especially since healthcare is also tied up into it. Good point, I forgot that was a thing at all.

All states except sort of Montana are "at Will".

Wish this term would die since it's basically meaningless when nearly all of the country has it

Most of these contracts will have a clause requiring approval of holiday request by your manager.

Ok, that makes sense. So it's not Unlimited PTO "at will", it's "discretionary PTO according to your negotiation skills with your manager".

Generally the manager's hands are tied to by monthly HR reports. Any employee taking an excessive amount of holidays will be flagged up and the manager will have to justify such decisions.

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