Thinking of taking a sabbatical? Here’s what you need to know

What is a sabbatical?

A sabbatical gives you paid (or a combination of paid and unpaid) time off from work. A sabbatical leave can last anywhere from a few weeks, to several months, to up to a year. Sound too good to be true? It’s not. Many forward-looking companies are offering loyalty-boosting, burnout-thwarting breaks to their employees.

1. Find out if your company offers sabbaticals and what’s required to get one

Firstly, see if sabbaticals are already a part of your employee benefits package. If that’s the case, then it’s time to look at the small print. Start by getting answers to these questions:

• Are sabbaticals only available after a certain number of years of employment?
• Is taking a sabbatical merely a matter of putting in a request for the time off? Or is the process more complicated?
• Does your company need to know why you’re requesting a sabbatical?

2. Know why you’re taking the sabbatical (because your employer may ask)

A sabbatical may feel like an extended vacation. But it’s also an opportunity to take the time to think deeply about the next steps in your life and career.

Ask yourself, “Am I where I want to be?” If so, what are the next goals you’d like to reach? If not, how can you revamp your situation to align with your needs, wants and values?

Plus, taking an extended period of time to really focus on your mental health can have multiple benefits. Here’s a few to keep in mind.

• You get paid time off to relax and switch off 100% from everyday work concerns. That reduction of stress can immediately help your physical health.
• Your cortisol or stress levels can drop. This can help you reduce fatigue and sleep better.
• You may see an increase in creativity.
• Your mental, physical, and emotional revitalization can help make you a better employee when you return.

3. How to financially prepare for your sabbatical

Financially preparing for a sabbatical is crucial to ensure a smooth and stress-free experience during your time off. Planning ahead can help minimize the financial strain and allow you to fully embrace the opportunity without worrying about money.

Here are some options for financing your time away:

• Savings. Use existing savings but also put away an extra amount each month leading up to your time off.
• Tax-free savings account (TFSAs). This money isn’t taxed when you make a withdrawal and whatever you do withdraw will be added to your contribution room next year.
• Registered retirement savings plans (RRSPs). Remember that any money taken out of your RRSP will be taxed. And, unlike TFSAs, RRSP withdrawals don’t generate new contribution room.
• Borrow against a line of credit. Keep in mind that you’ll have to pay interest on the money you borrow and you’ll have to make regular payments.
• Establish a deferred salary leave arrangement or plan (DSLP) with your employer, if possible. This is a written plan that lets you spread your salary over a period of time. It allows you to evenly distribute the funds between your paid working time and your sabbatical. With a DSLP, you collect a smaller percentage of your pay while working and save up the difference in a DSLP to draw on during your time off. This provides a consistent salary during your time off. Depending on how much salary you want to put aside (the law says you can defer no more than 33 ½ %), how long you’re willing to manage on a lower paycheque, and what your employer will permit, you may need to set up a DSLP two or three years before you plan to take your sabbatical.

Another thing to consider is health insurance. Find out whether your workplace health benefits will cover you and your family while you’re on leave. If not, you’ll need to arrange personal health insurance, critical illness insurance, disability insurance and other coverage – plus travel insurance if you plan to travel out of the province or the country.

When planning a sabbatical, it’s also important to speak to an advisor to ensure that you have a comprehensive and realistic plan in place. A financial advisor can help you:

• Create a budget for your sabbatical
• Identify potential financing options
• Review and adjust your financial portfolio
• Provide recommendations on how to maintain long-term financial goals during your leave
• Understand the tax and insurance implications of an extended leave
• Provide guidance on how to manage your finances during and after your sabbatical

4. Have some structure (but not too much!)

Your sabbatical is the perfect time to try new things that will support your self-care. Make a list of things you would like to experience. Your list might have long-held dreams or spur-of-the-moment ideas like:

• Traveling,
• trying new hobbies,
• investing in therapy,
• penciling in time to meditate or
• working on a book.

By creating some structure around your sabbatical, you can use the time in a way that helps you avoid frittering away this valuable break.

It’s also the time to examine what you want out of your professional life. Do you want to switch careers? Go part-time? Quit? You may eventually choose to maintain the status quo. A sabbatical can be a period of self-discovery about what works for you in all areas of your life.

Read more : Quitting your job? Here’s what happens to your health insurance

5. Find out how to manage your sabbatical

Once your sabbatical is approved, it’s time to plan the hand-off and on-boarding. Create a plan with your manager and team for before and after your sabbatical. This way, everyone can transition as easily as possible.

6. Remember what a sabbatical is all about

Don’t disconnect entirely, but don’t slip into the trap of being too connected. Discuss with your manager and team the best way to contact you. Be sure to include days and times, so they’ll be confident that they can contact you if needed. But there can also be very real boundaries.

On your end, you may have a tough time letting go as well. It’s important to remind yourself that you’re taking this time off to work towards becoming a better, healthier you. And that’s something both you and your company can celebrate.

Read more : Looking for a relaxing vacation? Try disconnecting

What if you can’t take a sabbatical from work?

Let's say your company or employer doesn't offer sabbaticals. What can you do? Start by politely asking HR about potential ways to use current offerings to achieve the same goal.

There’s also plenty of material that proves the physical, mental and productivity benefits of sabbaticals. Who knows? By bringing up the topic, you may plant a seed that revolutionizes your own company’s approach to work and time off.

What are the alternatives to a sabbatical?

Taking a sabbatical is a big decision and sabbaticals don’t necessarily work for everyone or all situations.

There are other types of leaves that are worth looking at:

• Vacation: All employees in Canada get a minimum of 2 weeks paid vacation each year. If you want to take a short break off work, this is where you start.
• Sick day: You don’t need to take a sabbatical if you’re unwell, sick or attending hospital appointments. That’s what sick days are for.
• Compassionate care leave: Employees in Canada have a right to take a job-protected leave when caring for gravely ill family members. Each province and territory have their own employment standards legislation that protects employees from termination when on this form as leave.
• Parental leave: Welcoming a new child into your family is a wonderful and special experience. It’s important to take some time off to enjoy it. This is where parental leave, and extended maternity and paternity leave come into play.