Czech companies are offering unlimited vacation: Is this the future of work?

Large firms have begun trialing the idea, citing improved employee retention, but some experts question fairness and impacts on productivity.

Thomas Smith

Written by Thomas Smith Published on 24.03.2025 10:26:00 (updated on 25.03.2025) Reading time: 2 minutes

A growing number of companies in the Czechia are experimenting with unlimited vacation policies, challenging traditional work structures and offering employees greater flexibility. While the model remains relatively new, early adopters suggest it could enhance work-life balance, boost productivity, and even improve employee retention.

Top companies trying it out

Direct Pojišťovna, a large insurance company in the country, has been offering unlimited leave for seven years. Employees are granted the statutory 20 days of vacation, but they can take additional paid time off as long as their absence does not disrupt their team. “This advantage supports one of our values, namely personal responsibility, which is very important to us,” Michal Řezníček, CEO of Direct pojišťovna, told Czech media outlet iDnes.cz.

According to company data, employees took an average of seven extra days of leave in 2024, with 68 percent of the workforce utilizing the benefit. The highest recorded vacation time taken under this policy was 24 additional days, amounting to nine weeks in total.

Other big companies are following suit. Rohlík.cz, a major Czech online grocery retailer, implemented unlimited vacation in 2021. Employees have varied approaches to the policy, with some actively using it while others need encouragement to take even their standard four-week allotment. The company fully covers all vacation days. “The longest vacation taken in our company reached 41 days,” said spokesperson Denisa Morgensteinová.

Technology firm Seyfor also adopted the policy in 2022, opting for unlimited vacation over other work flexibility models, such as a four-day workweek. Initially, employees were skeptical about whether they could truly take unlimited leave, using only 3.25 additional days on average in the first year. However, usage has since stabilized at around five extra days annually.

Benefits and drawbacks

Seyfor executives report positive effects from the policy, citing improved employee satisfaction and efficiency. “After two years, we have no negative experience, and no concerns that someone could abuse this benefit have been confirmed,” said CEO Martin Cígler. In one case, a key employee struggling with burnout took three months of leave and returned to work with renewed motivation.

Despite its benefits, unlimited leave remains a work in progress. Some employees take full advantage of it, while others, particularly managers, refrain due to a strong sense of responsibility toward their teams. “The proper adoption of this benefit is a long-term process,” noted Seyfor’s Chief People Officer, Martina Chloupková.

There's also the risk of uneven usage—while some employees take full advantage, others hardly use it, potentially leading to burnout.

While the model is gaining traction in the Czech Republic, its long-term impact remains to be seen. If companies continue to report higher productivity and employee satisfaction, unlimited leave may become a broader workplace trend in the years to come. 

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