Working Through COVID-19

Vacation Policies Survey

Summer is typically prime vacation time. Will it be this year? The Conference Board of Canada asked organizations across the country how they’re managing employees’ vacation usage, and what changes they’re making to vacation policies.

Here’s what we found.

Note: Survey responses were collected on Monday, May 25, 2020. These findings are part of a Conference Board series on work and pay during the COVID-19 pandemic. Stay tuned for updates as this situation evolves.

Woman in office analyzing results

With nowhere to go and travel restrictions still in effect, employees may be less motivated to use their vacation in the coming months.

This is a top concern among employers that could lead to paying out large amounts of unused vacation, or more employees taking time off at year-end.

Organizations are encouraging—or even requiring—their employees to draw down their accrued vacation. Only a small number of organizations are directing when employees must take this time off.

More encouragement than requirement

Q: As a result of COVID-19, how is your organization directing employees to use vacation before year-end (or other deadline)?

(n = 296; percentage of organizations)

Note: Total does not add to 100 as more than one response could be selected.
Source: The Conference Board of Canada.

For organizations requiring employees to take vacation, few are exempting employees in high-demand roles from this requirement.

Even high-demand workers must use up vacation

Q: Do any of the following circumstances exempt employees from being required to use vacation before year-end (or other deadline)?

(n = 82; percentage of organizations)

Note: Totals may not add to 100 due to rounding.
Source: The Conference Board of Canada.

Everyone needs a break.

Now that workers are balancing new demands and stressors from COVID-19, the risks to their mental health are greater than before. Employers are also encouraging the use of vacation days to mitigate these risks, and help employees balance family responsibilities.

Addressing balance and burnout with vacation

Q: Is your organization encouraging/requiring vacation usage to address any of the following current challenges?

(n = 283; percentage of organizations)

Note: Total does not add to 100 as more than one response could be selected.
Source: The Conference Board of Canada.

How are employers’ vacation policies changing?

Vacation policies are getting a second look

Q: Has your organization changed its approach to vacation policies as a result of the COVID-19 pandemic?

(n = 311; percentage of organizations)

Note: Total does not add to 100 due to rounding.
Source: The Conference Board of Canada.

Among organizations that have made or are considering making changes to vacation policies, 92 per cent are not touching vacation entitlements.

Of the organizations that are modifying entitlements, most are looking to increase them.

One in five organizations changing carryover policies

Q: Has the amount of vacation time employees are allowed to carry over changed as a result of COVID-19?

(n = 309; percentage of organizations)

Note: Sample size indicates the number of organizations providing a response for at least one of the above options.
Source: The Conference Board of Canada.

Businessman stretching in office chair

Vacation carryover: Use it or lose it?

Having too much accrued vacation on the books can be a financial liability for an organization. Half of organizations are reviewing their approach to unused vacation that cannot be carried over—whether that involves paying it out, having employees forfeit it, or a hybrid of the two.

Nearly half unsure how to tackle unused vacation

Q: During COVID-19, for unused vacation that employees cannot carry over, which of the following applies?

(n = 287; percentage of organizations)

Source: The Conference Board of Canada.

Get an inside look at our respondent profile.

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