Big tech companies in the US such as Netflix, Dropbox and GitHub have helped popularise one of the most talked-about workplace benefits in recent years: unlimited paid time off.
On the surface, it sounds ideal. No fixed holiday allowance. No counting days. No restrictions. Just trust employees to take the time they need, when they need it.
As American-backed companies continue to grow their presence in the UK, we are seeing this approach introduced into British workplaces too.
But while unlimited holiday sounds simple in theory, in practice it raises a far more complex question: does it actually encourage people to take more time off, or less?
The idea behind unlimited holiday
The logic behind unlimited paid time off (PTO) is rooted in autonomy and performance culture. Companies like Netflix helped redefine traditional HR models by shifting focus from hours worked to outcomes delivered.
If an employee is meeting expectations, the theory goes, they should have full control over how and when they take time away from work.
This removes administrative processes, eliminates unused holiday carry-over, and reinforces a culture of trust and flexibility.
In fast-moving, high-performance environments, this can be a powerful proposition.
Why the reality is more complicated
Despite its appeal, unlimited holiday does not always lead to more time off.
In fact, research and workplace behaviour in the US suggest the opposite can happen. Employees often take fewer days than they would under a traditional allowance.
The reason is psychological rather than practical.
Without a defined entitlement, people lose a reference point. This can create uncertainty:
- How much is “acceptable” to take?
- What do colleagues take?
- Will taking too much reflect poorly on performance?
Instead of encouraging rest, the absence of boundaries can unintentionally create hesitation.
Cultural differences: US vs UK
In the United States, where statutory holiday entitlement is not guaranteed and annual leave is typically lower, unlimited PTO is positioned as a significant benefit.
In the UK, however, employees are already entitled to a minimum of 28 days (including bank holidays). Taking annual leave is also more culturally embedded and generally encouraged.
This means the same policy can have very different outcomes depending on where it is applied.
In the UK context, unlimited holiday may feel more like an enhancement than a replacement. However, its success still depends heavily on organisational culture.
Why culture matters more than policy
Unlimited holiday only works when employees feel genuinely able to use it.
That means leadership must actively encourage time off, model healthy behaviours, and avoid creating an unspoken expectation of constant availability.
Without that, even the most generous policy can quietly become underused.
This is where many organisations miss the mark. Benefits are often designed to look attractive on paper, but their real impact depends on how they are lived day to day.
What this means for employers
From a talent perspective, benefits like unlimited holiday are increasingly part of the conversation. Candidates are not just looking at salary, but at flexibility, wellbeing, and workplace culture.
However, clarity is becoming just as important as generosity.
Employees want to understand:
- What is expected of them?
- What is genuinely encouraged?
- Do people actually feel comfortable switching off?
For employers, this is less about copying trends and more about designing benefits that are meaningful, transparent, and genuinely used.
Unlimited holiday sounds like the ultimate workplace perk, but in reality it is a test of culture, not generosity.
In the right environment, it can empower people to rest more effectively and work more sustainably. In the wrong one, it can create ambiguity that leads to less time off, not more.
Which brings us to a simple question:
If your holiday was unlimited, would you actually take more time off… or just end up taking less?
