Definition of Unpaid Leave and Examples
Unpaid leave is permission for an employee to be absent from work for a specific period. It can be voluntary or mandatory, paid or unpaid.
Learn about the situations in which a person can apply for unpaid leave and what may happen if the request is approved.
When is Unpaid Leave Used?
Unpaid leave is used when an employee’s absence from work is not covered by benefits available from the employer, such as sick leave, paid leave, holidays, or paid time off.
Unpaid leave does not provide wage compensation for the employee during their absence, but it ensures job continuity, which is especially important regarding certain benefits that the employer bears the costs for, such as accrued vacation time or health insurance coverage.
The employee may need to pay for other costs, such as dental insurance or life insurance, during the unpaid leave period.
Examples of Unpaid Leave
For example, imagine you have a sick relative. You find out that their illness has progressed and they don’t have much time left to live, and you’ve been appointed as the estate manager. Upon the death of this relative, you may be provided with bereavement time and attendance at the funeral, but if you need more time to deal with the estate, you will need to request unpaid leave.
In another example, suppose you have just welcomed a new baby into your family. Under the Family and Medical Leave Act (FMLA), your job is protected for 12 weeks after the birth or adoption of the child, provided that the employer has more than 50 employees and you have worked there for more than 1,250 hours. (Your manager is not required to pay your salary during those 12 weeks.) You are absolutely certain that you want to stay home with your newborn for a while after exhausting your family medical leave benefits, so you will request unpaid leave to extend your time at home with the new baby.
When Can Unpaid Leave Be Legally Protected?
There are some situations where it is legally required for the employer to provide unpaid leave.
Customer Service: Employers are required to grant time for employees to perform community service, but they are not legally required to pay the employee during their absence from work. If the employer chooses to pay the employee during their absence for community service, they may set policies regarding the duration of time they wish to pay the employee for an extended trial period.
Military Service: Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), employers are required to provide unpaid leave for military service for employees. It also ensures that the employee can maintain health insurance coverage during their absence from work.
Voting: Some states require employers to allow workers to take time off to vote, but the amount of leave and whether it is paid or unpaid varies from state to state.
Be aware of the state and federal laws that apply to your situation, as the employer may not have the right to deny your request for leave.
Note: In any case, the employer needs to have an application process and a policy for granting unpaid leave. The employer must apply the policy in a non-discriminatory manner. By having a specific policy in place, employers ensure that all employee requests for leave are treated fairly and without discrimination.
Requesting unpaid leave is different from negotiating employee benefits such as a flexible schedule, where you need the employer to see some benefit for themselves in granting your request. With unpaid leave, you may find yourself in a position where you need to request it even when taking leave is not your choice.
How
Does Leave Without Pay Work?
When you request leave without pay, provide your employer with as much notice as you can, as they will need to ensure that core work duties are covered by other employees during your absence. Inform your employer as soon as possible once you discover that you may need or want to take leave.
Politely request leave without pay and provide an explanation for why the leave is needed and when you plan to return to work. Consult your employer face-to-face to request the leave, but follow up in writing to confirm the details.
Note: You may suggest to your manager or employer to consider with you how your job will be covered during your time away from work. This shows your willingness to provide solutions.
You may also want to inform your coworkers when you take leave without pay. You don’t have to tell them the reason, but since they will be taking over your responsibilities during your absence, it is kind to let them know when you expect to return. You may also want to inform your clients about who they can contact when you are away.
Key Points
Leave without pay is authorized time away from work, often for special circumstances in an employee’s life.
Leave without pay can be either paid or unpaid.
Some laws cover certain types of leave such as for customer service and military service.
It is best to give your employer as much notice as possible if you intend to take leave without pay.
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Sources:
U.S. Department of Labor. “VETS USERRA Fact Sheet 3.” Accessed July 1, 2020.
SHRM. “State Laws: Time Off to Vote (primary dates vary).” Accessed July 1, 2020.
Source: https://www.thebalancemoney.com/leave-of-absence-what-a-leave-is-and-how-to-apply-1918176
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