Unpaid leave is authorised time away from work with the agreement of the employer, or under statute, during which time the employee or worker does not receive pay.
What is unpaid leave?
Unpaid leave covers a range of circumstances but generally means an employee being away from work and not being paid. It’s either offered by the employer or is covered by legal entitlements (such as parental leave and time off for dependants), protected absences for public duties (like jury service) and contractual arrangements (for example, unpaid sabbaticals).
Things to know
- There is no single right to general, open‑ended unpaid leave. Rather it depends on the reason for the request, length of service and the employment contract or workplace policy.
- Taking unpaid leave can affect pay, pension contributions, holiday accrual and other benefits, plus continuity of service. So employees and employers should record arrangements in writing.
- The key statutory unpaid leave is parental leave — for eligible employees with one year’s service. This lasts up to 18 weeks per child and usually for a maximum of four weeks per year unless agreed and reasonable time off for dependants in emergencies
- Employers can refuse non‑statutory unpaid requests but must follow contractual and discrimination and detriment protections
FAQs
Is unpaid leave the same as a worker’s holiday?
No, statutory time off work for holidays, sickness or maternity leave is different from unpaid leave.
What kinds of statutory unpaid leave are there?
These include parental leave (for qualifying employees) and reasonable unpaid time off for dependants; plus, other protected absences, such as for public duty like jury service.
Can an employer refuse to allow unpaid leave?
Yes, employers can refuse non-statutory unpaid leave requests. However, for statutory leave (such as parental leave), they’re obliged to follow the legal entitlement and any notification rules.
Will unpaid leave affect a worker’s holiday or pension?
Holiday entitlement, pension contributions and other benefits can be affected by taking unpaid leave, so workers should check their employer’s policies and get any details in writing.
Does an employee have a right to have their job back?
For most statutory unpaid leave employees have their right to return to the same or a suitable similar role. Contractual or discretionary unpaid leave should include ,include, in writing, terms for return-to-work.
