​​​​​When I tell someone I work for a business that offers unlimited paid time off (UPTO) I usually get one of two responses; the first one being ‘wow that’s amazing, I wish my business did that’, and the second, more cynical reply, ‘Sounds too good to be true, I’ve heard this never really works in practice.’  

Unlimited paid time off, is what you’d imagine - ​​employees don't have a set number of days for their annual leave, but can take however much they want, as long as it doesn't disrupt business operations. In businesses offering UPTO, an employee's performance is measured by the quality of their output, rather than the number of hours spent at their desk. 

In this article, we’ll talk about people who are engaged as employees, as freelancers are considered self-employed and don’t typically receive paid time off - they are responsible for managing their own leave and finances to cover periods of non-earning. 

Sounds great right? However, a US survey showed workers with UPTO actually took fewer holidays than those with a fixed allocation, and the survey also stated that workers with UPTO are more likely to work when they are on leave. When individuals don’t take regular time off, and don’t have space to switch off, it can have a negative impact on their mental and physical health. It also causes more harm than good at work, leading to decreased productivity and creativity and strained relationships.  

UPTO has become quite popular over recent years. Netflix was one of the early adopters and still offers it now (even though it’s taken some time to get it right). Advocates of the policy love the freedom and flexibility it brings, but opponents claim it undermines employee freedom, as people end up working more out of fear of looking like they have a poor work ethic.  

Goldman Sachs also introduced an UPTO policy, but it was only offered to partners and managing directors, which implies that while Goldman's senior staff can be trusted to do what they like, more junior people still need careful monitoring. 

In this article we’ll delve into the pros, the cons and how to successfully implement an UPTO policy that works for all. 

• If done in the right way, employees can have greater control of their work-life balance 

• It can be really beneficial for the employee - parents can take more time off during the school holidays, or it can be used to visit family who live abroad, without the worry of rationing days through the year  

• It’s a great way to retain and attract talent. According to a recent survey, annual leave was ranked top of the list for most important non-salary benefits for UK office workers  

• It builds a culture of trust and autonomy  

• It encourages results-driven performance  

• It’s helpful for the business as the stats show lower levels of sickness, burnout and disengagement  

• If there isn’t clear guidance ambiguity will lead to less time off - with employees asking ‘how much is too much? I don’t want to look like I’m not committed to my job’  

• If managers or leaders aren’t making use of the policy, junior staff are also less likely to 

• Inconsistency across teams. Some managers might freely encourage the time off, while others might actively discourage it  

• Added stress - some employees might feel obligated to justify their time off, or feel guilty for taking leave, which creates the opposite effect to rest and recovery  

• It can be seen as unfair to employees who leave half way through the year as it could mean no payout for unused holiday in the final pay cheque   

• Some have the perception that it is hard to plan and causes operational disruption  

At Netspeak Games, we have been offering UPTO since the end of 2020. We offer this to everyone, regardless of seniority or length of service. We also have a minimum of 25 days to take per year, plus bank holidays, which helps with the ambiguity (and this can also be used in calculations for leavers). We run monthly reports to see how much leave employees are taking, and we follow-up with anyone who might be behind in reaching the 25 minimum a year. We have a clear policy and consistent process which outlines how much notice is needed to request leave and how it should be approved (it is usually approved by the line manager but with Producers and HR in the loop).   

Some ask if UPTO is more time heavy for HR, but we haven’t found this to be the case - running monthly reports takes minutes, and following-up with employees can be done in a regular manager 1:1. We have had to decline annual leave on the rare occasion due to team members being off at the same time (as we are a small business), but we haven’t had to refuse requests for taking too much annual leave. If this did ever happen we would have a conversation with the person to explain the rationale.  

We are intentional with continuously working on our transparent and autonomous culture. We trust our employees to use their own judgement and so far they have been doing an excellent job at it. We’d encourage any business to offer an UPTO as the benefits far outweigh the challenges.  

• Define a clear policy which has a set number of minimum days to take  

• Train managers on the process so there is standard practice across the business  

• HR to run regular leave reports and have follow-up meetings  

• Offer the policy to employees of all levels  

• Seek feedback from employees on how the policy is working/not working 

• Create and foster a supportive culture that encourages people to use the policy, reinforce that taking leave is a right, not a reward  

• If you are applying at a company that offers UPTO, ask how it works in practice. Ask if they’ve had any issues with it and if they work on a minimum amount of days to take