Part of the problem is that in some companies, taking leave is something many workers don't do often enough – a phenomenon particularly pronounced in the US. "People don't take vacations now, even when they're accrued," says Peter Cappelli, professor of management at the University of Pennsylvania's Wharton School of Business, US, and director of its Center for Human Resources. “The reason is there's pressure on them not to do it."
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Granting unlimited paid holiday doesn’t make these problems go away – in fact, it can make them worse. With UPTO, workers are not technically owed any vacation days, since there's no fixed number, and everything must be cleared by the boss on a case-by-case basis. For workers, establishing what the ‘right’ amount of paid time off to ask for often depends on observing the behaviour of colleagues and bosses. If colleagues are only taking 10 days per year, asking for more could feel inappropriate.
Companies that adopt UPTO, says Cappelli, have “moved from a model where you accrue it – so you're actually owed the vacation – to one where you kind of [have to] ask. And there's nothing stopping your boss from yelling at you if you want to take additional time off – or punishing you if you do".
Plus, UPTO removes the safeguards that protect workers’ interests if they can’t take time off – there are no leftover days workers are legally required to take by year's end, or carry over to the next year. There's also nothing for workers to cash out if they quit and have days left over, which Cappelli says saves companies money.