Canadian workers are paying a ‘time off tax’ and losing out on real rest
ADP finds many Canadians add about 17 hours of extra work around vacations, turning time off into a logistical burden rather than rest. Employers and workers can take practical steps to fix it.
Copy link
By Torontoer Staff
Many Canadian workers are paying a “time off tax”: extra hours spent preparing for and recovering from vacation that turn days away from work into more work. ADP Canada’s Workplace Trends for 2026 report found only 32 per cent of Canadians took all their vacation in 2025, and those who did reported nearly 17 hours of additional work to make time off possible and manageable.
That pattern, ADP vice-president of marketing Heather Haslam says, shifts vacation from restorative to transactional. The result is rising fatigue, unpaid overtime and poorer engagement at work.
What the data shows
ADP’s findings link unused vacation and extra work with real costs for organisations and employees. The report shows a gap between employer intent and action: 87 per cent of employers say they are responsible for employee mental well-being, but only 46 per cent offer mental-health benefits. Unmanaged workload and fear of falling behind are common reasons people skimp on time off.
January is a pressure test for workplace culture. Employees are coming back into the new year already carrying stress and fatigue, which makes any existing gaps in support much more visible.
Heather Haslam, ADP Canada
Why vacations feel like more work
Workers often ‘frontload’ tasks before a leave and ‘backload’ catch-up work afterward. That organisational workaround can create extended periods of high intensity for the person taking time off and the team covering their responsibilities. It also discourages full disconnection, because the person on leave may still be checking messages to avoid a mounting backlog.
Other drivers include concern over job security, inadequate coverage plans and cultures that implicitly reward constant availability. Over time, these pressures contribute to burnout and higher staff turnover.
What employers can do now
Companies do not need large new budgets to reduce the time off tax. Haslam recommends normalising time off and having leaders model true disconnection. Clear coverage plans and realistic workload expectations help prevent the need to cram work around leaves.
- Have leaders take and publicly disconnect during vacation so it becomes accepted practice
- Create simple coverage rotations or buddy systems so work does not pile up on return
- Assess capacity across teams and redistribute tasks before leave is approved
- Encourage managers to schedule one-on-one check-ins to surface workload concerns early
- Solicit employee feedback on what support would make time off genuinely restorative
If people are paying a high ‘time-off tax’ to take vacation, that may be a red flag that coverage and capacity among employees needs to be reassessed.
Heather Haslam, ADP Canada
Practical steps for employees
Employees can also take actions that reduce the burden of time off and preserve its restorative effect. Plan handovers with priorities and owners, block follow-up time on return, and communicate boundaries about availability while away. Small adjustments to how leave is managed can make it easier to step away without creating a fire drill on return.
- Prepare a concise handover note that lists critical tasks, deadlines and contacts
- Set an out-of-office message with an alternate contact and expected reply timeframe
- Book a short buffer day on return, if possible, to triage messages and reset priorities
- Discuss coverage with your manager before taking leave to confirm expectations
- Use earned time off throughout the year to avoid a single concentrated absence
Alternative approaches to scheduling
Some organisations are experimenting with models that give workers more granular control over their time. Clinical psychologist and physician well-being coach Clary Tepper suggests microshifts for roles that can accommodate them. Microshifts break the day into focused blocks so people can manage caregiving or other responsibilities while meeting clear productivity standards.
Companies can have clear expectations for what needs to be accomplished. If the employees using microshifts do not meet those standards, they will know that microshifts are not the right style for that employee.
Clary Tepper, clinical psychologist
Microshifts will not suit every job, but they illustrate how flexibility combined with clear goals can improve satisfaction without sacrificing output.
Fast facts
- Only 32 per cent of Canadians used all their vacation in 2025, ADP Canada
- Workers who took vacation reported an average of nearly 17 extra hours to prepare and catch up
- 87 per cent of employers say they are responsible for employee mental well-being, while 46 per cent offer dedicated benefits
- 74 per cent of workers reported dread or indifference about returning to work after the holidays, according to a Headway survey
Reducing the time off tax calls for small, practical changes from both employers and employees. Clear expectations, planned coverage and leaders who model disconnection will help restore the point of vacation: genuine rest and recovery. Organisations that act on those basics can expect better engagement and lower turnover over time.
work-life balancevacationmental healthHRADP Canada
