The “unhappy leave” aims to better care for employees’ mental health and promote work-life balance, in stark contrast to China’s usual stringent work culture.

A company in China encourages its employees to take a break from work whenever they have the blues. Emphasizing mental health, supermarket chain Pang Dong Lai has introduced the “unhappy leave,” which allows their employees to avail of up to 10 days of additional leave whenever they feel unhappy— no questions asked.

The South China Morning Post (SCMP) reported that the unusual benefit was announced by the company’s founder and Chairman Yu Donglai at an event earlier this year. “I want every staff member to have freedom. Everyone has times when they’re not happy, so if you’re not happy, do not come to work,” said Yu. Management had likewise been warned that disapproving the leave would be considered a violation.

Yu’s policy is a response to China’s very strict and strenuous work culture known as the “966 system”. According to British publication The Independent, the system requires many employees in China to work from 9 a.m. to 9 p.m. daily, six days a week, with paid time off of only five to 15 days.

On the other hand, Pa Dong Lai employees only work seven hours a day, enjoy their weekends, and are entitled to 30 days of annual leave with an additional five-day Spring Festival break.

Quoting a 2021 workplace anxiety survey, SCMP said over 65% of employees in China feel tired and unhappy at work, citing “low wages, complex interpersonal relationships and overtime culture” as the main culprits for their discontent.

In a speech in 2023, Yu expressed his opposition to the practice of making employees work long hours, saying it prevents their overall growth. “Making staff work overtime is unethical and an expropriation of other people’s opportunities for growth,” he said. Yu has limited his company’s own expansion, opting to presently remain in the Hennan province where the company has established 13 outlets since 1995, instead of aggressively branching out to other provinces. “We do not want to be big. We want our employees to have a healthy and relaxed life, so that the company will too,” explained Yu.

Considerations in Implementation

Yu’s unhappy leave has been met with generally positive feedback around the world, though its implementation has brought up some questions and concerns.

In a post on LinkedIn, Oyindamola Oni, who describes herself as an HR Professional and Talent Acquisition Strategist from Nigeria, mentioned several pros to Yu’s policy, such as better mental health awareness, an empathetic work culture, and a more energized workforce with lower turnover and absenteeism. But she also noted possible cons such as potential abuse of the policy, difficulty in measuring unhappiness, effect on productivity, and a culture of dependence on leaves.

Other HR Professionals who weighed in on her post expressed the need for parameters and measures to ensure that the benefit is not abused and does not affect operations.

“What matrix would be used to really determine [if] an employee is unhappy? This might just lead to increased absenteeism or a lack of accountability,” offered Sonia Felix, an HR Supervisor. Felix added that if the source of the employee’s unhappiness is work related, then addressing the root cause of the problem would be a better approach than granting leaves.

“If the unhappy state of the employee is caused by conflict or dissatisfaction in the workplace, underlying issues that contributed to the dissatisfaction will not be addressed. It’s more like encouraging avoidance rather than addressing the root cause head on. Encouraging open communication, offering support and ensuring constructive feedback is a much more balanced approach,” she added.

For Human Resources Officer Hope Daniel, the policy may work in countries with a strong work ethic such as China and Japan but may be easily abused in other settings.

“I think it’s context-based. It could suffice in places where productivity is taken seriously. Especially countries like China, Japan and some Asian countries and the likes where they have this very sound moral behavior and sincere approach to what they do.”

 “If this becomes operational in our country more than half of the organization strength would be staying home guaranteed,” chimed Administrative Manager Kumail Haider.

It remains to be seen how effective the new policy, which was introduced just last March, would be in boosting the morale of Yu’s 7,000 employees, as well as Pa Dong Lai’s overall performance. However, the company’s overarching principle of putting employees’ welfare first has so far produced admirable results.

Other Potential Impacts of Good Employee Mental Health

In another interview by the SCMP in June, Yu claimed that less than 5% of their employees leave their company annually. Profit-wise, the company made 140 million yuan ($19 million), seven times more than its projected earnings.

Aside from the unhappy leave, Yu also pays his employees double the average wage and gives a “Grievance Award,” where employees receive additional compensation when customers mistreat them or slap them with unreasonable complaints.

The exemplary practice extends to its customers. SCMP said that Pa Dong Lai has a reputation for being a customer’s paradise due to its meticulous service.

In June this year, it also made a surprising move of voluntarily paying its customers a total of $1.2 million dollars when a customer exposed that the facility where they made their noodles was unsanitary. A company investigation revealed that the problem stemmed from violations by their joint venture partner, compelling Pa Dong Lai to voluntarily compensate the whistleblower and every customer who purchased the noodles.

Despite the negative incident, the company’s response was commended by consumers and only increased the public’s trust in them.

According to SCMP, the 58-year-old CEO came from humble beginnings. He grew up in a farming family and did not even finish secondary school.

He set up a small grocery store in 1995 and stuck to selling only authentic goods, despite the proliferation of stores that profited from selling fake goods at the time.

As his business grew, Yu upgraded to a tobacco and liquor store in 1997. Unfortunately, a group of gangsters set his shop on fire after he defended a female worker from being harassed by the gang. Yu had to rebuild from scratch, but was eventually able to recover and establish his business as the Pa Dong Lai that is known today. Dubbed the “silliest boss” in China for his utmost concern for his employees’ happiness and welfare, his company has also been branded a legend—a term he humbly declines. “We are only a little more honest and kinder. It is sad if this makes you a legend,” he told SCMP.