Ask HN: Companies that don't track holidays

I see it is more and more popular in job ads to say things like "we don't track vacation".

I'd like to know how this is working for both the employees that work at such places taking vacations and the employers giving the perk? Is it all paid, or not paid?

I work/management a small company and we have quite flexible working schedules. We have had a few people (including myself) take months off for holidays to come back, but we do track holidays and many times the longer vacations is unpaid time off.

Just wondering how it is working out for all these new startups.

Cheers