Employment · HR glossary

Unpaid Leave

Unpaid leave is an authorised absence for which the employee does not receive normal pay. It may arise under law, contract or an agreement with the employer.

Example

An employee requests additional personal leave after using the relevant paid entitlement, and the employer confirms the approved dates and payroll treatment.

What to keep in mind

Unpaid leave can affect benefits, accrual or contributions depending on the rules. Explain the consequences and distinguish approved unpaid leave from unauthorised absence or an employer-imposed suspension.

Further reading

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