There's no universally correct time-off model — there's only the one your team actually understands and trusts. Clarity beats generosity every time.
Make the rules boringly obvious
Ambiguous policies quietly punish the people least likely to ask. Spell out accrual, carry-over, notice periods, and public holidays in one place everyone can reach.
State the minimum you expect people to take, not just the maximum allowed
Automate approvals so managers aren't a bottleneck
Show balances and team calendars openly to avoid clashes
When the policy runs itself, managers stop adjudicating edge cases and people stop rationing rest. That's the real win.