{"id":287184,"date":"2025-07-01T15:05:48","date_gmt":"2025-07-01T15:05:48","guid":{"rendered":"https:\/\/www.aihr.com\/?post_type=hr-glossary&#038;p=287184"},"modified":"2025-07-01T15:05:55","modified_gmt":"2025-07-01T15:05:55","slug":"leave-without-pay","status":"publish","type":"hr-glossary","link":"https:\/\/www.aihr.com\/hr-glossary\/leave-without-pay\/","title":{"rendered":"Leave Without Pay"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-what-is-leave-without-pay\">What is leave without pay?<\/h2>\n\n\n\n<p>Leave without pay (LWOP) is an approved absence during which an employee doesn\u2019t receive wages. It\u2019s typically granted at the employer\u2019s discretion and may be used when an employee has exhausted their paid leave or needs time off for personal reasons.<\/p>\n\n\n\n<p>LWOP doesn\u2019t break an employee\u2019s continuous service but may affect the accrual of entitlements like <a href=\"https:\/\/www.aihr.com\/hr-glossary\/annual-leave\/\">annual leave<\/a> and long service leave.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;69faa1012a5f7&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"69faa1012a5f7\" class=\"wp-block-image size-full pin-image wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"1025\" height=\"681\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-definition.png\" alt=\"Definition of the term \u201cleave without pay.\u201d\" class=\"wp-image-287190\" srcset=\"https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-definition.png 1025w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-definition-300x199.png 300w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-definition-768x510.png 768w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-definition-510x339.png 510w\" sizes=\"auto, (max-width: 1025px) 100vw, 1025px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-leave-without-pay-rules\">Leave without pay rules<\/h2>\n\n\n\n<p>While commonly used in Australian workplaces, leave without pay is not heavily regulated by law and is governed by employer discretion, internal policies, and industrial instruments. Here are the general guidelines HR should follow:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-it-s-not-a-legal-entitlement-except-in-limited-cases\">It\u2019s not a legal entitlement (except in limited cases)<\/h3>\n\n\n\n<p>LWOP is not a general entitlement under the Fair Work Act 2009. Employees may request unpaid leave, but employers aren\u2019t required to approve it unless it\u2019s\u00a0linked to specific statutory leave types, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Parental leave:<\/strong> Eligible employees may access up to 12 months of unpaid parental leave, with the right to request an additional 12 months (up to 24 months total).<\/li>\n\n\n\n<li><strong>Community service leave: <\/strong>Includes unpaid leave for jury duty (after the first 10 paid days) or emergency service work.<\/li>\n\n\n\n<li><strong>Other statutory unpaid leave:<\/strong> Additional unpaid time related to domestic and family violence leave, where 10 days of paid leave is standard in most sectors.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-subject-to-employer-approval-and-internal-policies\">Subject to employer approval and internal policies<\/h3>\n\n\n\n<p>Employers aren\u2019t obligated to approve unpaid leave outside statutory entitlements. Most organizations set guidelines through internal policies, which typically:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Define acceptable reasons (e.g., study, personal matters, extended travel)<\/li>\n\n\n\n<li>Outline how employees can request LWOP<\/li>\n\n\n\n<li>Clarify approval processes and return-to-work conditions.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-impact-on-employee-conditions-and-entitlements\">Impact on employee conditions and entitlements<\/h3>\n\n\n\n<p>LWOP usually affects entitlements in these ways:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Annual and personal leave:<\/strong> Do not accrue during unpaid periods unless otherwise stated.<\/li>\n\n\n\n<li><strong>Superannuation:<\/strong> Generally not paid during LWOP, as it only applies to <a href=\"https:\/\/www.aihr.com\/hr-glossary\/ordinary-time-earnings\/\">ordinary time earnings<\/a>.<\/li>\n\n\n\n<li><strong>Service continuity<\/strong><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\"><strong>&nbsp;<\/strong>is typically maintained, but depending on jurisdiction, some entitlements (e.g., long service leave) may be paused<\/span>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-no-set-maximum-duration\">No set maximum duration<\/h3>\n\n\n\n<p>There\u2019s no fixed maximum duration for LWOP under federal legislation. Employers can set limits through internal policies or handle requests case by case. Some enterprise agreements may specify maximum lengths.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<h4 class=\"wp-block-heading\" id=\"h-hr-tip\"><strong>HR tip<\/strong><\/h4>\n\n\n\n<p>Some states and territories have different rules around long service leave and how LWOP affects it, so make sure you check <a href=\"https:\/\/www.employmentplus.com.au\/news\/what-are-the-rules-for-leave-without-pay\" target=\"_blank\" rel=\"noreferrer noopener\">both federal and state laws<\/a>.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-industrial-instruments-may-apply\">Industrial instruments may apply<\/h3>\n\n\n\n<p>Modern awards, enterprise agreements, or <a href=\"https:\/\/www.aihr.com\/blog\/employment-contract\/\">employment contracts<\/a> may contain specific provisions regarding when LWOP is allowed, approval conditions, and maximum durations or eligibility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-visa-and-immigration-considerations\">Visa and immigration considerations<\/h3>\n\n\n\n<p>For employees on temporary work visas, LWOP may raise compliance issues because many visas require continuous employment or full-time work, and extended unpaid leave could violate visa conditions and require reporting to the Department of Home Affairs. As such, employers should confirm visa-related implications before approving extended unpaid leave.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-workers-compensation-and-insurance\">Workers\u2019 compensation and insurance<\/h3>\n\n\n\n<p>Employees on LWOP are generally not covered by workers&#8217; compensation for incidents during the unpaid period, since they are not considered to be \u201cat work\u201d. Employer insurance (e.g., workers&#8217; comp or income protection) may also exclude coverage during these periods.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-payroll-and-systems-considerations\">Payroll and systems considerations<\/h3>\n\n\n\n<p>Employers should ensure payroll systems accurately record LWOP in order to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prevent incorrect leave accruals or super contributions<\/li>\n\n\n\n<li>Meet Single Touch Payroll (STP) reporting obligations<\/li>\n\n\n\n<li>Avoid payroll tax and reporting compliance.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-communication-and-documentation\">Communication and documentation<\/h3>\n\n\n\n<p>All LWOP requests should be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Submitted and approved in writing<\/li>\n\n\n\n<li>Clear about the leave\u2019s duration, purpose, and conditions<\/li>\n\n\n\n<li>Transparent about how it affects entitlements and return-to-work rights.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-no-automatic-right-to-return-to-the-same-role-except-in-protected-leave\">No automatic right to return to the same role (except in protected leave)<\/h3>\n\n\n\n<p>Unless the LWOP falls under a protected category (e.g., parental leave), an employer is not legally obligated to guarantee a return to the exact same position. Employers may need to fill the role temporarily, and return-to-work arrangements should be agreed upon in advance.<\/p>\n\n\n<div class=\"lazyblock-one-two-2LnS wp-block-lazyblock-one-two\"><div class=\"gutenberg-quote-columns two_columns\">\n\t<div class=\"gutenberg-quote-column\">\n\t\t      \n\t\t     \t\t\t\t\t     <div class=\"gutenberg-quote-column-content\"><h3 data-start=\"151\" data-end=\"392\"><strong data-start=\"151\" data-end=\"207\">Build your skills in compensation and leave strategy<\/strong><\/h3>\n<p data-start=\"151\" data-end=\"392\">Topics like leave without pay might seem straightforward, but they have important implications for entitlements, superannuation, and compliance, especially in Australian workplaces.<\/p>\n<p data-start=\"394\" data-end=\"657\" data-is-last-node=\"\" data-is-only-node=\"\">AIHR\u2019s <a href=\"https:\/\/www.aihr.com\/courses\/compensation-benefits-certification\/?il_id=ctr&amp;il_name=box-and-link-in-article&amp;il_position=none\" target=\"_blank\" rel=\"noopener\">Compensation &amp; Benefits Certificate Program<\/a> helps you design clear, fair, and legally sound compensation structures. Learn how to develop policies that align with business needs, meet legal requirements, and support your employees throughout their journey.<\/p>\n<div style=\"text-align: center;\">\n<div class=\"wp-block-button has-custom-font-size has-medium-font-size\"><a class=\"wp-block-button__link has-white-color has-text-color has-background has-link-color wp-element-button\" style=\"border-radius: 5px; background-color: #30206b; padding: 15px 30px; font-size: 18px;\" href=\"https:\/\/www.aihr.com\/courses\/compensation-benefits-certification\/?il_id=ctr&amp;il_name=box-and-button-in-article&amp;il_position=none\" target=\"_blank\" rel=\"noopener\" data-darkreader-inline-bgcolor=\"\">GET STARTED<\/a><\/div>\n<\/div><\/div>\n              \n\t<\/div>\n\t \n<\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-common-reasons-for-leave-without-pay\">Common reasons for leave without pay<\/h2>\n\n\n\n<p>There are a number of <a href=\"https:\/\/www.fairwork.gov.au\/leave\/unpaid-leave\" target=\"_blank\" rel=\"noreferrer noopener\">common reasons<\/a> why employees may request leave without pay. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Extended personal leave:<\/strong> When an employee has used all their paid sick or carer\u2019s leave but still needs time off, whether for ongoing recovery from illness or surgery, or to care for a seriously ill family member.<\/li>\n\n\n\n<li><strong>Parental leave extensions:<\/strong> Employees often take additional LWOP to stay home longer with a new child, which can be up to 24 months under the <a href=\"https:\/\/www.fairwork.gov.au\/leave\/unpaid-leave\" target=\"_blank\" rel=\"noreferrer noopener\">National Employment Standards (NES).<\/a><\/li>\n\n\n\n<li><strong>Study or exam leave:<\/strong>&nbsp; To undertake further education, participate in intensive training programs, or sit exams, especially when no paid study leave is offered.<\/li>\n\n\n\n<li><strong>Travel or relocation:<\/strong> For personal travel, family commitments overseas, or relocating for family reasons. This is especially relevant for migrant workers who wish to return to their home country for an extended period.<\/li>\n\n\n\n<li><strong>Career break or sabbatical:<\/strong> Some employers permit extended unpaid leave to allow employees to step away from work, pursue personal goals, recharge, or <a href=\"https:\/\/www.aihr.com\/blog\/employee-burnout-signs\/\">prevent burnout<\/a>.<\/li>\n\n\n\n<li><strong>Family emergencies:<\/strong> If <a href=\"https:\/\/www.aihr.com\/hr-glossary\/compassionate-leave\">compassionate leave<\/a> entitlements don\u2019t apply or have been used, employees may take LWOP to deal with a family crisis or extended <a href=\"https:\/\/www.aihr.com\/hr-glossary\/bereavement-leave\/\">bereavement<\/a>.<\/li>\n\n\n\n<li><strong>Domestic and family violence:<\/strong> While 10 days of paid leave is standard under the NES, additional LWOP may be requested for recovery, relocation, or legal matters.<\/li>\n<\/ul>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;69faa1012c2ca&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"69faa1012c2ca\" class=\"wp-block-image size-large pin-image wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-1024x1024.png\" alt=\"Common reasons employees take leave without pay, such as extended leave, study, travel, emergencies, or family issues.\" class=\"wp-image-287185\" srcset=\"https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-1024x1024.png 1024w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-300x300.png 300w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-150x150.png 150w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-768x768.png 768w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-400x400.png 400w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-510x510.png 510w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-200x200.png 200w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-24x24.png 24w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-48x48.png 48w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog-96x96.png 96w, https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-Blog.png 1080w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-case-example-lwop-granted-for-extended-parental-care\">Case example: LWOP granted for extended parental care<\/h4>\n\n\n\n<p>Amina returned to work after 12 months of unpaid parental leave, following the birth of her second child. With her partner returning to work full-time and delayed childcare, Amina asks her employer for an additional two months of unpaid parental leave. The company doesn\u2019t have a formal parental leave extension policy, but after reviewing her request and confirming it won\u2019t disrupt operations, her manager approves the LWOP on compassionate grounds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-to-include-in-a-leave-without-pay-policy\">What to include in a leave without pay policy<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-define-the-policy-s-purpose-and-scope\">1. Define the policy\u2019s purpose and scope<\/h3>\n\n\n\n<p>Start by setting clear expectations for both employees and managers, and align the policy with legal and organizational standards.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Purpose: <\/strong>Explain when and how employees may apply for unpaid leave and how the company will assess those requests.<\/li>\n\n\n\n<li><strong>Scope: <\/strong>Specify which employees are covered (e.g., full-time, part-time, fixed-term), and whether casuals or contractors are included.<\/li>\n\n\n\n<li><strong>Alignment:<\/strong> Note how the policy aligns with the Fair Work Act 2009, internal policies, and relevant awards or enterprise agreements.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-identify-the-situations-covered-by-the-policy\">2. Identify the situations covered by the policy<\/h3>\n\n\n\n<p>List common scenarios where LWOP might be granted to give employees and managers a practical frame of reference. These may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Medical recovery after paid sick leave has been exhausted<\/li>\n\n\n\n<li>Extended parental leave beyond statutory or paid entitlements<\/li>\n\n\n\n<li>Personal travel, study, or responding to family emergencies.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<h4 class=\"wp-block-heading\" id=\"h-hr-tip-0\"><strong>HR tip<\/strong><\/h4>\n\n\n\n<p>Be clear that the approval isn\u2019t guaranteed and each request is subject to operational needs and individual circumstances.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-outline-the-application-and-approval-process\">3. Outline the application and approval process<\/h3>\n\n\n\n<p>Establish a consistent, step-by-step approach to ensure all requests are handled fairly and transparently. Include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Required <a href=\"https:\/\/www.aihr.com\/hr-glossary\/notice-period-meaning\/\">notice periods<\/a> (e.g, two to four weeks before the start date)<\/li>\n\n\n\n<li>What the employee must submit (e.g., medical certificate, travel itinerary)<\/li>\n\n\n\n<li>The responsibilities of HR and managers when reviewing requests<\/li>\n\n\n\n<li>The expected timeline for responding to the request (e.g., within seven business days).<\/li>\n<\/ul>\n\n\n\n<p>Make it clear that LWOP must be formally approved in writing before the leave starts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-set-parameters-for-duration-limits-and-review-points\">4. Set parameters for duration, limits, and review points<\/h3>\n\n\n\n<p>Provide guidance on how long LWOP can last and when reviews are necessary.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maximum timeframes (e.g., three months for <a href=\"https:\/\/www.aihr.com\/hr-glossary\/personal-leave\/\">personal leave<\/a>, up to 12 months for extended parental leave)<\/li>\n\n\n\n<li>Conditions under which extensions may be granted<\/li>\n\n\n\n<li>Minimum time units (e.g., leave must be taken in full-day blocks)<\/li>\n\n\n\n<li>Check-in points for longer leaves to review the impact on the employee\u2019s role or entitlements.<\/li>\n<\/ul>\n\n\n\n<p>It\u2019s also wise to include language about possible business impacts, such as the need to fill the role temporarily during extended absences.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-explain-the-impact-on-employment-conditions\">5. Explain the impact on employment conditions<\/h3>\n\n\n\n<p>Help employees understand what LWOP means for their entitlements and <a href=\"https:\/\/www.aihr.com\/hr-glossary\/employment-status\/\">employment status<\/a>. Cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Whether leave and superannuation will continue accruing<\/li>\n\n\n\n<li>How continuity of service is treated<\/li>\n\n\n\n<li>Access to <a href=\"https:\/\/www.aihr.com\/blog\/types-of-employee-benefits\/\">employee benefits<\/a><\/li>\n\n\n\n<li>Whether insurance or workers\u2019 compensation still applies.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-clarify-return-to-work-expectations\">6. Clarify return-to-work expectations<\/h3>\n\n\n\n<p>Lay out the return process so employees and managers are on the same page. Address:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Whether the employee is guaranteed the same position<\/li>\n\n\n\n<li>Notice requirements for returning to work early or extending the leave period<\/li>\n\n\n\n<li>If a medical certificate is needed for return after health-related leave<\/li>\n\n\n\n<li>Whether re-induction or handover is expected for longer absences.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-7-reference-legal-and-industrial-instruments\">7. Reference legal and industrial instruments<\/h3>\n\n\n\n<p>List any applicable awards, enterprise agreements, or legal instruments that may affect how LWOP is handled in specific roles or regions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-8-include-a-policy-review-and-contact-clause\">8. Include a policy review and contact clause<\/h3>\n\n\n\n<p>Conclude the policy with a review date or cycle (e.g., every two years or after legal updates), and contact information for HR or the relevant manager who can answer questions or process requests.<\/p>\n\n\n<div class=\"gaihrpl gaihrpl-29\"><div class=\"gaihrpl-single aaihrpl-147\"><a class=\"gofollow\" data-track=\"MTQ3LDI5LDYwMA==\" href=\"https:\/\/www.aihr.com\/courses\/compensation-benefits-certification\/?il_id=banner&#038;il_name=cbcp&#038;il_creative=cbcp-modules&#038;il_position=slot2\" target=\"_blank\" rel=\"nofollow\" style=\"display:block;padding-top:20px;\"><img decoding=\"async\" src=\"https:\/\/www.aihr.com\/wp-content\/plugs\/podcast-blog-ads-fade.jpg\" srcset=\"https:\/\/www.aihr.com\/wp-content\/uploads\/CBCP-Banner-Modules.png 360w, https:\/\/www.aihr.com\/wp-content\/uploads\/CBCP-Banner-Modules.png 360w, https:\/\/www.aihr.com\/wp-content\/uploads\/CBCP-Banner-Modules.png 700w, https:\/\/www.aihr.com\/wp-content\/plugs\/ w\" sizes=\"(max-width: 480px) 360px, (max-width: 960px) 360px, (max-width: 1280px) 700px, 750px\" style=\"box-shadow: 0px 0px 20px 5px rgb(46 61 73 \/ 15%);display: block;margin: auto; border-radius:19px;\" class=\"small_ad\" \/><\/a>\r\n<br><\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-alternatives-to-leave-without-pay\">Alternatives to leave without pay<\/h2>\n\n\n\n<p>Here are common alternatives to leave without pay when <a href=\"https:\/\/www.fairwork.gov.au\/leave\/unpaid-leave\" target=\"_blank\" rel=\"noreferrer noopener\">unpaid leave<\/a> isn\u2019t approved or suitable:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Paid leave entitlements:<\/strong> Employees can use any accrued annual, personal\/carer\u2019s, compassionate, or long service leave before requesting <a href=\"https:\/\/www.aihr.com\/hr-glossary\/unpaid-time-off\/\">unpaid time off<\/a>.<\/li>\n\n\n\n<li><strong>Flexible work arrangements:<\/strong> Adjustments like reduced hours, compressed workweeks, or temporary remote work can help employees manage personal needs without taking full leave.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.aihr.com\/hr-glossary\/time-off-in-lieu-meaning\/\"><strong>Time off in lieu<\/strong><\/a><strong> (TOIL):<\/strong> Employees may take time off instead of <a href=\"https:\/\/www.aihr.com\/hr-glossary\/overtime-pay\/\">overtime pay<\/a>, provided this is agreed on in advance and compliant with award conditions.<\/li>\n\n\n\n<li><strong>Career break or <\/strong><a href=\"https:\/\/www.aihr.com\/blog\/sabbatical-leave\/\"><strong>sabbatical leave<\/strong><\/a><strong>:<\/strong> Some organizations offer unpaid career breaks under formal policies that maintain job security, typically for study, travel, or rest.<\/li>\n\n\n\n<li><strong>Leave purchase schemes:<\/strong> Employees can salary-sacrifice to buy additional leave, spreading deductions over time to maintain income stability.<\/li>\n\n\n\n<li><strong>Shift swapping or roster adjustments:<\/strong> Employees in shift-based roles may rearrange duties with colleagues to cover short-term absences without taking leave.<\/li>\n\n\n\n<li><strong>Using banked leave or previous TOIL: <\/strong>In some workplaces, employees can draw from leave balances accrued over previous years or banked TOIL arrangements.<\/li>\n\n\n\n<li><strong>Unpaid statutory leave categories: <\/strong>Awards or legislation may provide for specific types of unpaid leave (e.g., additional carer\u2019s leave, pandemic leave) that don\u2019t fall under general LWOP.<\/li>\n\n\n\n<li><strong>Internal secondments or role changes:<\/strong> Employees seeking a break due to stress or misalignment might consider a short-term transfer to a different role instead of time off.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faq\">FAQ<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1751024064630\"><strong class=\"schema-faq-question\"><strong>Does leave without pay affect long service leave (LSL)?<\/strong><\/strong> <p class=\"schema-faq-answer\">In most cases, LWOP doesn\u2019t count toward continuous service for LSL accrual. However, this varies depending on state or territory legislation, enterprise agreements, or awards. Some short unpaid periods (usually under two weeks) may still count. Employers should check the relevant legal framework and communicate clearly with employees about how their LSL may be impacted.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1751024074546\"><strong class=\"schema-faq-question\"><strong>Can an employer refuse leave without pay?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, employers are within their rights to refuse leave without pay requests. Unlike annual or personal leave entitlements, LWOP isn\u2019t automatically owed to employees unless it\u2019s connected to a specific statutory entitlement (e.g., parental leave). Employers should consider requests in good faith and assess operational needs, fairness, and consistency, but they&#8217;re not obligated to approve LWOP if it would unduly disrupt business operations.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1751024089179\"><strong class=\"schema-faq-question\"><strong>Can you work another job while on leave without pay?<\/strong><\/strong> <p class=\"schema-faq-answer\">This depends on the terms of their existing employment contract, relevant workplace policies, and potential conflicts of interest. Employers can set reasonable expectations or restrictions, particularly if secondary employment could impact the employee\u2019s availability, performance, or create a competitive or reputational risk. Concerned employers should clarify expectations in writing and request disclosure before approving the leave.<\/p> <\/div> <\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"parent":0,"menu_order":0,"template":"","hr_glossary_category":[],"class_list":["post-287184","hr-glossary","type-hr-glossary","status-publish","hentry","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Is Leave Without Pay? | HR Glossary - AIHR<\/title>\n<meta name=\"description\" content=\"Leave without pay (LWOP) is an approved unpaid absence from work, often used when paid leave runs out or for personal reasons.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aihr.com\/hr-glossary\/leave-without-pay\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Leave Without Pay\" \/>\n<meta property=\"og:description\" content=\"Leave without pay (LWOP) is an approved unpaid absence from work, often used when paid leave runs out or for personal reasons.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.aihr.com\/wp-json\/wp\/v2\/hr-glossary\/287184\" \/>\n<meta property=\"og:site_name\" content=\"AIHR\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/analyticsinhr\/\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-01T15:05:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.aihr.com\/wp-content\/uploads\/leave-without-pay-definition.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1025\" \/>\n\t<meta property=\"og:image:height\" content=\"681\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@AnalyticsinHR\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\\\/\\\/www.aihr.com\\\/hr-glossary\\\/leave-without-pay\\\/\",\"url\":\"https:\\\/\\\/www.aihr.com\\\/hr-glossary\\\/leave-without-pay\\\/\",\"name\":\"What Is Leave Without Pay? 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