I really like the policy of "minimum mandatory time off" some companies have. That makes a big statement about where their priorities are in terms of care for their employees' well-being.
The company I'm at effectively has that as part of their unlimited PTO policy, though the timing is company-mandated, being the first week of August and the week between Christmas and New Years, which is a week so many people are likely to take off anyways, it just makes things easier to make everyone take it off.
Going into the week off in August, I wasn't sure how seriously they took it, but sure enough, I didn't get a single e-mail that week other than weekly reports from automated tools. I even checked Slack that Friday, and there wasn't a single message except for the channel where people post pictures of fun stuff they do over the weekend.
I pretty much hate policies that require you to take PTO at specific times. They're almost never the times I would choose to take on my own and are often at times it's difficult to combine into a longer trip.
Having everybody take the time off can be good, but it doesn't achieve the goal of making sure all processes can go as usual while any individual isn't there, as mentioned in your peer comment about banks.
Banks tend to have this policy because there are a lot of ways to steel in ways that you can cover your tracks. But most of those ways require regular effort to cover your tracks, so if you are locked out of the office for at least two weeks someone is likely to notice. Note that this is two continuous business weeks. Nothing happens over Christmas so that doesn't count.
I had a manager who couldn't let anything happen without her input. She went on vacation and participated in everything via Slack for two weeks. Making her disconnect might have helped more people realize how much she was ... "translating" requirements and work status between her reports and other teams.
In many jurisdictions, there's a statutory minimum amount of annual leave; you can take less but then the difference must be paid in lieu. (Versus if you give 30d, 18d is minimum, and employee takes 20d, then you don't have to do anything. Obviously could have a company policy of paying it if you want.)
So, a more cynical take on mandatory time off, and something that absolutely does happen, is that they'd just rather not have the work than have to pay extra for it.
Also common is not rolling over into the next year, so use it or lose it.
In Norway you're required by law to take four weeks and a day vacation every year. Almost everyone has five weeks vacation time in total. Both you and your employer can demand that three of those are continuous during summer, and most of the country shuts down three weeks in July.
