Taxing time off

It’s been a particularly long, dark, and isolated winter for most people, so the arrival of summer is a welcome one. Many people are looking forward to taking some time off to get away, relax, and… check their work email?

That seems to be the case in an increasingly connected world. A recent survey found that most Americans work while on vacation. And many employers seem happy to let them, despite the potential negative effects of burnout and overwork.

Why is this happening? As mentioned above, it’s a very connected world. Technology allows employees to easily stay connected to their employer and co-workers. The rise of remote work during the pandemic and the likelihood that it will stay at increased levels afterwards means employees are more connected at home, but this leads to the increased risk and temptation of not signing off when the day is done. It appears that this tendency to stay connected is carrying into vacation time as well.

It’s also a fact that many workers have to take on more tasks and responsibility when their employers reduce staff — such cuts are often aimed to reduce costs, but they often don’t reduce the work that needs to be done. This means that not only are workers pressed for time, it’s hard to step away to take a break if there’s no coverage for absences.

‘Time-off tax’

Taking time off can lead to extra work before vacation and having it pile up for when a worker returns — this has been termed the “time-off tax.” In fact, another survey found that almost one-half of working professionals in the U.S. said taking time off causes more work-related stress than not taking it.

And a Canadian survey from 2019 found that one-half of Canadian workers were subjected to vacation-shaming — negative pressure or guilt from managers or colleagues that discourages them from taking their full vacation entitlement.

The CEO of an Ottawa-based company faced backlash after telling employees to give up their vacation days and lie about it.

What this all means is that many workers are not taking their vacation allotment, which can lead to multiple problems for employers and employees. It’s been recognized that vacations allow workers to rejuvenate and take a break, which contributes to more productivity and engagement — engaged employees are more likely to stay, while more burnout will increase turnover.

Time off also helps physical and mental health, which means workers may be less likely to get sick — sick employees are more absent and less productive, which can hurt the employer’s bottom line.

Legal considerations around vacation

There’s also legal liability to consider. All jurisdictions in Canada have a minimum vacation entitlement for employees —at least two weeks for employees with at least one year of service, with it increasing to three weeks after a specified time, usually five years. Saskatchewan requires employers to provide three weeks of vacation to employees with one year of service.

But if someone is checking and sending emails or doing other work-related tasks, is that really vacation time? Depending on how much work is done, a legal challenge could lead to a determination that vacation wasn’t provided and the employee was just working remotely. At the least, there could be enough for an entitlement to overtime pay.

Remote work has always had its potential overtime pitfalls. Employees who tend to ignore the boundaries between work hours and off-duty time while working at home may also tend to do the same when they take time off. Employers should be careful that this isn’t happening too much, particularly if workloads and schedules are set up in a way that can make it more difficult or stressful for employees to take vacation leave.

It may seem inconvenient for an employer when an employee is off work taking a breather, but it ultimately will allow the employee to breathe more when they’re back at work. And the employer will be able to breathe more easily if a question of compliance with employment standards is raised.

More U.S. employers are encouraging employees to take time off while some are implementing unlimited vacation entitlements.