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I wrote the sentence. I have a feeling that I can use 'practice' to refer to the italic text. However, after checking the dictionary, I still don't know exactly what 'practice' means in this context. Does it mean 'activity'?

I disagree that employers should provide their employees with at least four weeks of vacation every year, because this practice can lead to burnout for those who remain at work.

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Right, in that context it means the practice (or policy) of employers providing at least four weeks of vacation to their employees.

COLLINS COBUILD Dictionary sense 1 looks like a good fit:

You can refer to something that people do regularly as a practice.

  • Some firms have cut workers' pay below the level set in their contract, a practice that is illegal in Germany.
  • The Prime Minister demanded a public inquiry into bank practices.

Synonyms: custom, use, way, system

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