• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
LeadershipFuture of Work

The one big problem with Netflix’s unlimited maternity policy

Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
August 5, 2015, 5:16 PM ET
Video Poster
Add Fortune on Google for similar content.

Netflix received grand praise on Tuesday for what appears to be an unprecedented move: the video streaming site announced that it will offer employees unlimited maternity and paternity leave in the year following the birth or adoption of a child.

Netflix certainly deserves credit for introducing a family leave policy that eclipses the nation’s rather pathetic norms. Just 12% of all workers receive paid family leave nationally, and the United States is one of just three nations surveyed by the United Nations that doesn’t guarantee women pay during their maternity leave.

But in recent years, as companies compete for top talent by dangling plush benefits packages, the word “unlimited” has cropped up more and more, most often in relation to vacation days and with decidedly mixed results.

Netflix has been recognized as one of the first major companies to implement unlimited vacation days; other companies like Best Buy, Evernote, and Virgin Group have followed suit, reasoning that so long as employees get their work done, the number of days they take off doesn’t matter.

The only problem is that when workers are presented such an open-ended option, they are often left confused. For starters, it’s hard to determine how much time off is appropriate to take. Then of course there’s the fear that taking time off will mean missing out on important meetings and projects—absences that could scuttle opportunities for advancement or promotions.

Netflix stopped keeping track of employees’ vacations in 2004 to “focus on what people get done, not on how many hours or days” they work. A Netflix spokesperson told Fortune on Wednesday that the company doesn’t count vacation days. In 2011, a Netflix spokesperson estimated that Netflix employees were taking three to five weeks off annually—more than they had in the past, according to The Wall Street Journal. He also said that workers keep in touch via email or phone when they’re out. “People are on all the time,” he said.

That doesn’t sound like much of a vacation.

In announcing Virgin Group’s unlimited vacation policy in September, founder Richard Branson said in a blog post that he wants his employees to take as much time off as necessary, but he said he assumes “they are only going to do it when they feel a hundred percent comfortable that they and their team are up to date on every project and that their absence will not in any way damage the business—or, for that matter, their careers!”

No pressure! Bon Voyage!

Employees at Tribune Publishing were so outraged by the company’s decision in November to offer unlimited PTO that it rescinded the new policy just eight days after introducing it. It had caused “confusion and concern within the company,” CEO Jack Griffin said.

Taking time off for vacation and going on a maternity or paternity leave are no doubt different; workers are more likely to set aside quality time to recover from childbirth or bond with a new child than they are to lay on a beach or tour a European city. But an unlimited offering puts a great deal of uncertainty on employees. For workers, taking time off becomes more like taking someone up on a favor rather than accepting a benefit you are entitled to.

“Having a set amount of time crates a more tangible expectation or norm. Unlimited policies can seem amorphous,” says Vicki Shabo, vice president at the National Partnership for Women & Families.

In an ideal world, new parents would decide how many days to take off in the vacuum of their own personal lives, but it’s silly to assume that such a safe space exists; it’s tainted by concerns about missing too many meetings, returning to too many unanswered emails, and it prompts comparisons to other new parents who missed fewer days following their child’s birth. As if new moms and dads didn’t have on their minds, they’re now under pressure to calculate the exact number of days they’ll need to adapt to parenthood and then justify that decision to their employer.

Netflix should be commended for its ample policy. New parents should receive more paid time off than they’re currently getting. But if a company is going to be so generous, it should offer precise guidance to employees.

“Where the rubber meets the road is whether people feel comfortable using the time they’re given,” Shabo says. There needs to be “a cultural expectation that they can use the time without their career track being penalized.”

A Netflix spokesperson said the company communicated the new policy with employees before it posted it publicly. The company is providing managers with tools to help discuss the policy with employees, and its leaders will “take an active role” to help managers and employees adapt, she said.

At the very least, Netflix has articulated “a cultural aspiration that acknowledges that people have personal lives and professional lives,” Shabo says. “To the extent that they can ameliorate the clash between the two, then the new the policy purports to stand out as a new standard.”

About the Author
Claire Zillman
By Claire ZillmanEditor, Leadership
LinkedIn iconTwitter icon

Claire Zillman is a senior editor at Fortune, overseeing leadership stories. 

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Leadership

George Soros never signed the Giving Pledge. He’s given away more of his fortune than the billionaires who did
Successphilanthropy
George Soros never signed the Giving Pledge. He’s given away more of his fortune than the billionaires who did
By Sydney LakeJuly 22, 2026
25 minutes ago
Sam Altman and Jony Ive formed a dream team to reinvent hardware. Now it’s at the center of a battle for OpenAI’s future
Big TechOpenAI
Sam Altman and Jony Ive formed a dream team to reinvent hardware. Now it’s at the center of a battle for OpenAI’s future
By Emily Forlini and Sebastian HerreraJuly 22, 2026
26 minutes ago
Panera founder and Cava chairman Ron Shaich bets $100 million on Level99, bringing his restaurant industry playbook to entertainment
C-SuiteFood and drink
Panera founder and Cava chairman Ron Shaich bets $100 million on Level99, bringing his restaurant industry playbook to entertainment
By Catherina GioinoJuly 22, 2026
27 minutes ago
The American Heart Association has a new number for daily coffee—and a warning if you go over it
Successlifestyle
The American Heart Association has a new number for daily coffee—and a warning if you go over it
By Orianna Rosa RoyleJuly 22, 2026
28 minutes ago
Cleveland’s WNBA team doesn’t play until 2028 but Progressive just scored jersey sponsorship
SuccessSports
Cleveland’s WNBA team doesn’t play until 2028 but Progressive just scored jersey sponsorship
By Joe Reedy and The Associated PressJuly 21, 2026
10 hours ago
Moldova’s parliament elects 44-year-old businessman investor Vasile Tofan as prime minister
PoliticsEuropean Union
Moldova’s parliament elects 44-year-old businessman investor Vasile Tofan as prime minister
By The Associated PressJuly 21, 2026
10 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
2 days ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
2 days ago
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
Cybersecurity
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
By Jeremy Kahn and Emily ForliniJuly 21, 2026
12 hours ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
15 hours ago
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
Success
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
16 hours ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.