With unlimited PTO policies becoming more popular, employees are often left wondering how much time off is appropriate to take. Unlimited vacation sounds great in theory, but can also lead to guilt, confusion, and even burnout if not managed properly. In this article, we’ll explore how unlimited PTO works, the pros and cons, and provide some best practices on how to make the most of your unlimited vacation time.
What is unlimited PTO?
Unlimited PTO removes set vacation day allotments and allows employees to take time off when needed, with approval. There is no set limit on how many vacation days can be taken in a year. The idea behind unlimited vacation time is to provide more flexibility and empower employees to manage their own time off based on their workload and personal needs.
According to a survey by Namely, approximately 5% of companies now offer unlimited vacation policies. Tech companies and startups were some of the first to adopt unlimited PTO, including Netflix, LinkedIn, and Virgin Management. But even large, established companies like General Electric, Kronos Incorporated, and Evernote now offer unlimited vacation time.
Unlimited vacation policies are often paired with unlimited sick time as well. Companies reason that if you trust employees to manage their own vacation schedule wisely, you should also trust them to take sick time appropriately without abusing the policy.
The pros of unlimited PTO
There are several potential benefits to unlimited vacation policies for both employees and employers:
- Increased flexibility and freedom – Employees can take time off when needed or desired instead of trying to cram vacation into a fixed window.
- Improved work-life balance – Unlimited PTO emphasizes taking time to recharge, preventing burnout.
- Happier, more engaged employees – The perception of unlimited vacation is attractive when recruiting talent.
- Reduced PTO tracking and liabilities – HR doesn’t have to keep track of set vacation days.
- Productivity focus – The focus is on work produced versus time spent at your desk.
The feeling of having “unlimited” vacation is appealing to many employees, even if they don’t end up taking any additional days off. In some cases, unlimited PTO leads to taking the same or less time off. But the flexibility provides a sense of empowerment and autonomy that many appreciate.
The cons of unlimited PTO
However, unlimited vacation also comes with some potential disadvantages:
- Overwork and burnout – Despite having unlimited time off, some employees end up taking less vacation.
- Guilt and social pressure – Colleagues or managers may frown upon frequent vacations.
- Lack of guidance – With no clear limits, some don’t know how much time off is acceptable.
- Less money paid out – Unused PTO is typically not paid out when an employee leaves the company.
- Higher performers take more time – Those who complete work faster take more vacation days.
The lack of structure with unlimited vacation means some employees struggle to disconnect from work and actually use their PTO. Busy periods may make taking vacation seem undesirable. An employee may also feel guilty “abusing the system” if colleagues take less time off.
And when there are no clear guidelines, some employees take very little time off. They may fear looking less dedicated than team members who take less vacation. With unlimited PTO, high performers can take more time off as a “reward” for increased productivity. But this can exacerbate inequalities if managers allow their top employees more PTO.
How much PTO should you take?
So with all the confusion around norms for unlimited vacation, how do you determine the “right” amount of PTO to use? Here are some best practices:
- Take at least 15 days off – Even with unlimited vacation, you should aim for a minimum of 2-3 weeks off per year to avoid burnout.
- Discuss expectations – Have an open conversation with your manager on PTO expectations.
- Take time early in the year – Don’t save all your vacation for the end of the year.
- Plan ahead – Give notice for planned vacations as far ahead as possible.
- Use time off regularly – Avoid taking one mega vacation per year.
- Disconnect fully – When on vacation, make an effort to fully recharge and disconnect.
Aim to take at least 2-3 weeks off per year, spread throughout the year. Taking a long vacation all at once can make it harder to disconnect when you return. Regularly taking 3-5 days off to recharge can prevent burnout while still allowing you to complete key projects and meetings.
Discuss expectations openly with your manager. See if they have suggestions on PTO based on your role and workload. Transparency upfront ensures you take an appropriate amount of vacation time.
How unlimited PTO works
Unlimited vacation still requires some administration around time off requests and approvals. Here are some common practices companies implement:
- Employees request PTO through an online system for manager approval.
- Most PTO should be requested and approved at least 2 weeks in advance.
- PTO requests should indicate if the employee will have email and other communication access while out.
- Managers can deny PTO requests if they coincide with critical deadlines or projects.
- Some companies block out certain “blackout dates” such as quarterly closings where PTO is restricted.
There is still an approval process, but managers are generally encouraged to approve PTO liberally as long as it doesn’t interfere with critical initiatives. Some companies allow “half days” off as well if employees need to schedule appointments or errands.
Remote access expectations should also be clarified in PTO requests. For full digital detox, employees can indicate they will have no access to email and online tools while out. For staycations or quick getaways, they may maintain partial access for critical issues.
Unlimited PTO request guidelines
To take full advantage of unlimited PTO, follow these best practices when submitting PTO requests:
- Check for team coverage – Avoid taking PTO on critical deadlines others will depend on you for.
- Request further in advance for longer vacations – At least 4 weeks notice for a full week or more off.
- Provide background on priorities and upcoming deadlines before leaving.
- Offer a backup contact on your team who can cover key items if needed.
- Automatically send delegate calendar access to your manager once your request is approved.
With advance planning, you can take time off fully confident nothing will fall through the cracks. Delegate important tasks and provide access to critical files before you go. Offer someone who can answer quick questions about your projects while you’re away.
The more notice provided for PTO requests, the better. Check with your manager on typical advance notice expectations. For a 5 day vacation, 2-3 weeks notice is often sufficient. But for 10 days off or longer, 30 days notice or more should be provided whenever possible.
Unlimited vacation policies around the world
Policies for unlimited PTO or vacation time vary widely across different countries and regions:
Country | Minimum Annual Leave | Additional Info |
---|---|---|
Brazil | 30 calendar days | Employees typically get 30 days of paid vacation every year. |
France | 30 work days | French employees get at least 5 weeks of legally guaranteed paid vacation. |
Germany | 24 work days | German employees get a minimum of 20 paid vacation days per year. |
Japan | 10 work days | Japan has no laws on minimum annual leave. 10 days is typical at larger companies. |
Spain | 30 calendar days | In Spain, the statutory minimum PTO is 30 calendar days. |
United Kingdom | 28 work days | British employees are entitled to at least 28 days or 5.6 weeks of PTO. |
United States | No federal minimum | US has no federal laws requiring employer-provided vacation time. |
Most European countries have laws guaranteeing 4-6 weeks of paid vacation per year for all employees. Some provide even more, like Brazil’s 30 day statutory minimum PTO. Meanwhile, the US has no federal regulations around employer-provided vacation time.
Unlimited PTO began as a US concept to compete for talent. But in regions with generous vacation minimums, unlimited PTO is far less common. When employees already get 4+ weeks off, unlimited vacation policies hold less appeal.
Unlimited vacation in Europe
Many European employers do provide more than the statutory minimum PTO. But unlimited vacation policies remain rare. Some key factors make unlimited PTO less suited for Europe:
- Robust employee protections – Generous minimum PTO is enshrined in law across Europe.
- Work-life balance focus – Europeans value vacation and leisure time as a cultural norm.
- Client expectations – Client contracts often include employee vacation, making unlimited PTO complicated.
- Pre-existing PTO allowances – With 4-6 weeks off guaranteed, unlimited PTO is less enticing.
Offering unlimited PTO could actually seem like a downgrade if it led to employees taking less time off than the legal minimum. Europe’s working culture emphasizes rest, leisure time, and work-life balance. Unlimited vacation better suits US work cultures that prioritize long hours and constant productivity.
Unlimited PTO around the world
While not as common globally as in the US, some other countries are starting to adopt unlimited PTO policies as well:
- Canada – A growing number of startups and tech companies now offer unlimited vacation.
- Australia – Virgin Australia offers unlimited paid leave to all employees.
- New Zealand – Unlimited leave is uncommon but increasing, especially in tech and finance sectors.
- Singapore – A few multinational and tech companies have begun unlimited PTO trials.
- Dubai – Some multinationals provide unlimited vacation for certain roles like tech and marketing.
Globalization means cultures and worker expectations are blending worldwide. Offering unlimited PTO can help multinational companies attract talent across different regions. But locally owned companies still tend to provide set amounts of statutory or customary vacation time.
Should unlimited PTO be mandated?
With unlimited PTO on the rise at some companies, is this a policy that should become more widespread or even mandated by law? Some experts argue there are benefits to requiring unlimited PTO:
- Ensures adequate time off for all workers
- Reduces burnout and improves mental health
- Increases employee autonomy and satisfaction
- Could increase productivity from well-rested employees
- Standardizes PTO across industries
However, critics argue that mandating unlimited PTO has some significant downsides as well:
- Hard to regulate evenly across different industries
- Less PTO may be taken without minimum requirements
- Staffing and coverage challenges for small businesses
- Reduces predictability for planning purposes
- Could allow discrimination for certain demographics like working parents
Unlimited vacation works best when companies have a culture of transparency and trust. Employees feel empowered taking time off and bosses see the benefits of preventing burnout. Mandating such a policy by law could backfire if the culture isn’t there to support it.
Some experts argue a better compromise would be increasing the federally mandated minimum vacation days from zero to a modest amount like 10 work days per year. This provides a minimum baseline while still allowing companies to offer unlimited or more generous PTO policies as well.
Country-by-country requirements
Looking globally, national laws for minimum vacation time vary widely. Here are some examples of mandated minimum annual leave requirements:
- Brazil – 30 calendar days
- France – 30 work days
- United Kingdom – 28 work days
- Germany – 24 work days
- Sweden – 25 work days
- Australia – 20 work days
- Mexico – 6 work days
- India – None
- China – 5 work days (only after 1+ years of service)
- United States – None
The European Union as a whole sets a minimum baseline of at least 20 paid vacation days per year. Meanwhile, Asian countries like India, Singapore, and Thailand have no legally mandated annual leave. Mandating PTO varies significantly worldwide based on national culture and employment laws.
PTO mandates in the US
While federal US law does not require any PTO, some individual states have started mandating minimum paid vacation or sick leave:
- Arizona – No minimum PTO mandated
- California – 3 days paid sick leave
- Maine – 3 days unpaid sick leave only
- Oregon – 5 days sick leave, no vacation minimum
- Vermont – 5 days sick leave, 3 days general paid leave
Paid vacation mandates have been proposed in various US cities and states but not yet enacted. The closest current laws are mandating paid sick leave of 3-5 days per year. But no US states yet require a set number of paid annual vacation days for all workers.
Key takeaways
Here are some key tips on maximizing your unlimited PTO:
- Take at least 2 weeks off to avoid burnout
- Discuss norms and expectations with your manager
- Spread PTO throughout the year for better rest
- Submit requests well in advance for planning
- Disconnect fully on vacation when possible
- Unlimited PTO works best with a culture of trust
While unlimited vacation has some risks, following best practices can help ensure you avoid pitfalls. Take time off regularly, disconnect from work, and discuss open expectations with managers. When handled well, unlimited PTO provides the ultimate flexibility to take time off fully guilt-free.