Employees at Branson's Virgin Group can take unlimited vacation whenever they want, provided they work at one of the main offices in New York, London, Geneva or Sydney.
For now, the new policy will apply to roughly 160 employees. Branson said Virgin subsidiaries would be encouraged to follow suit if the experiment is successful.
"Take a holiday whenever you want. Take as much holiday as you want. We're not going to keep a check on how much holiday you take," he said in a interview with CNN's Erin Burnett.