ADULT GAP YEAR SERIES: Quit Work for a Year Without Quitting (The Deferred Salary Plan)

Michelle spoke with John Cuddie, a retired HR professional with deep experience in school boards, about deferred salary leave plans — a structured way to save for a year off work. John shared how he used the program twice, what he did during his leaves, and why intentional pauses can be personally and professionally valuable.

About John

• Spent 30+ years in HR with three school boards

• Later worked as an employment advisor helping new immigrants and youth

• Approves deferred salary leave plans as part of his HR background

• Took two deferred salary leaves himself

What Is a Deferred Salary Leave?

• A leave of absence funded by saving part of your salary in advance

• Common structure: “four over five”

  • Work 4 years at 80% pay

  • 20% goes into a trust account

  • Take the 5th year off using those savings

• Often includes pension/benefit considerations and a contractual return-to-work agreement

What John Did on His Leaves

First Leave

• Home projects: painting, purging, tidying

• Family travel to India and Dubai

• Trips with kids to Broadway/New York and a ski holiday

Second Leave

• More household and personal tasks

• Significant time supporting a close friend going through cancer treatment

• Some travel as well

Main Takeaways

• A year off can be invigorating

• It can also be humbling — work continues without you

• Time away helps people see they are not their job

• It creates balance and makes room for other forms of contribution

What Holds People Back

• Financial concerns about living on reduced salary

• Uncertainty about what the future may hold over a 4–5 year planning period

• Family changes, life changes, and possible cancellation of plans

Planning Considerations

• Budget carefully

• Think through staffing and who will cover your role

• Consider family and partner dynamics

• Balance practical tasks with rest, fun, travel, and connection

• Use the time to invest in what matters most

Practical Advice/Next Steps for you

• Start by talking to your employer or boss

• Ask your payroll department about the details

• Review CRA guidance on tax implications

• Be ready to discuss staffing and return-to-work planning

• Connect With The Canadian Gap Year Association

• Join “Gapper Connect” on Discord to connect with students thinking about a gap year, current Gappers, and alum all in one place! https://www.cangap.ca/gapperconnect

• Find more resources at the Can Gap website https://www.cangap.ca/

• Follow on Instagram http://www.instagram.com/cangapassociation/

• Follow on Facebook https://www.facebook.com/ucangap

• Follow on Twitter https://twitter.com/ucangap

• Follow on YouTube https://www.youtube.com/channel/UCuBit8gLXEOxaBggoGmykjQ