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What is a leave of absence?

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1 minutes

A leave of absence is a period of time during which an employee is permitted to be away from work for various reasons, such as medical, personal, or family matters, without losing their job. It can be either paid or unpaid, depending on the employer's policies and the nature of the leave.

Types of leaves of absence

Leaves of absence can be categorized into two main types: mandatory (or protected) and voluntary. Understanding the differences and distinctions between the two helps both employers and employees manage leave effectively.

Mandatory leaves of absence

Mandatory leaves of absence are required by law or company policy. Some examples include:

  • Family and Medical Leave Act (FMLA): Provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons. We’ll cover this in more detail later on.
  • Maternity and paternity leave. Leave for new parents to care for their newborn or adopted child, which may be mandated by local laws or company policy (but isn’t always mandatory).
  • Military leave: Required leave for service members who are called to active duty or training in the armed forces. Military service leave is protected by the Uniformed Services Employment and Reemployment Rights Act, a federal law.
  • Jury duty leave: Time off required for employees who are summoned to serve on a jury. Employers are required to allow employees time off for jury duty, but they are not required to pay them for that time.
  • Disability leave: Under the Americans with Disabilities Act (ADA), employers are required to provide reasonable accommodations to employees with short- or long-term disabilities, which can include adjustments to the work environment or work schedule, or disability leave if needed.

Voluntary leave of absence

Voluntary leaves of absence are at an employer’s discretion. They are not required by law. These can include:

  • Personal leave: Time off for personal reasons, such as pursuing further education, travel, or addressing personal matters.
  • Sabbatical: Extended period of leave granted to employees, often for professional development, research, or rest, typically offered by academic institutions or some corporate employers.
  • Sick leave: Time off work for when an employee is ill or to attend medical appointments. This can be unpaid or paid leave. In some places, it’s required by law, but in most of the US, it’s not.
  • Paid leave: Also known as PTO, time off with pay is offered as an employee benefit by many employers and can sometimes be used to take a leave of absence.
  • Unpaid leave: Time off without pay, which can be requested for various personal reasons not covered by other leave policies.

What’s required during a leave of absence?

During a leave of absence, both the employer and the employee have specific responsibilities to make sure they’re both complying with laws and company policies.

Employer’s responsibilities during a leave of absence

  • Job protection: If the leave is mandatory, the employer has a duty to make sure that the employee’s job or an equivalent position is available upon their return.
  • Benefits continuation: The employer must also maintain the employee’s benefits, such as health insurance coverage, during the leave as required by law or company policy.
  • Documentation: Employers should make sure they provide all necessary documentation and information to their employees regarding their rights and responsibilities during leave.
  • Compliance: Most importantly, employers are responsible for knowing and adhering to relevant federal, state, and local labor and employment laws governing leaves of absence.

Employee’s responsibilities during a leave of absence

  • Notice: Employees should provide advance notice when possible when requesting leave, following the company’s policies and any legal requirements.
  • Documentation: Employees should submit any required documentation, such as medical certification for FMLA leave.
  • Communication: Employees should maintain communication with their employer regarding the duration of the leave and any changes to their planned date of return.
  • Benefits payments: If the employee contributes to the cost of their benefits, such as health insurance premiums, they should continue to make those payments by any due dates that fall within their leave period.

What is the Family and Medical Leave Act (FMLA)?

The Family and Medical Leave Act (FMLA) is a US federal law that provides eligible employees with up to 12 workweeks of unpaid, job-protected leave in each 12-month period. Employees can take an unpaid leave of absence under the FMLA for specific family and medical reasons, including:

  • Serious health conditions
  • Caring for an immediate family member with a serious medical condition
  • Birth of a baby
  • Placement of a child for adoption or foster care
  • Caring for a family member on leave from the military after being injured on active duty
  • Military qualifying exigency

Who qualifies for FMLA leave?

Not all employees can qualify for FMLA leave.

First, they need to work for a covered employer (more on that in the next section).

Then, eligibility to take a medical leave of absence under the FMLA requires that the employee has worked at least 1,250 hours during the 12-month period preceding the leave.

To take military leave under the FMLA, the employee must be an active or inactive member of the US military and provide written or verbal notice to their employer.

Who is a covered employer?

An FMLA covered employer is any private sector employer that has had 50 or more employees within a 75-mile radius for at least 20 workweeks in the current or preceding calendar year. All public agencies (federal, state, and local governments) and educational institutions (private and public schools and school boards) are also covered employers.

Tips for creating a leave of absence policy

Creating a clear and comprehensive leave of absence policy helps manage employee expectations and comply with any legal requirements your organization may be subject to. Here are some guidelines to follow, but note that these are general and won’t apply to all businesses:

  • Define types of leave: Clearly outline the types of employee leave available, including protected and voluntary leave benefits you offer, and the conditions under which employees can use them.
  • Eligibility criteria: Specify the criteria employees need to meet to be eligible for each type of leave. Include any documentation requirements.
  • Job protection and benefits: For any protected leave, explain the extent of job protection and the continuation of benefits. If leave is protected by law, explain employees’ rights and protections.
  • Procedure for requesting leave: Provide a step-by-step process for how to make a leave of absence request, including notice periods and points of contact.

Once your leave policy is created, document it somewhere employees can access and reference it, like your employee handbook. When onboarding new employees, make sure human resources or their manager goes over the policy with them so they understand how to use their leave benefits.

Frequently asked questions about leaves of absence

[H3] What is the difference between a leave of absence and vacation time?

A leave of absence is a period during which an employee is permitted to be away from work for various reasons, such as medical, personal, or family matters, without losing their job. It can be either paid or unpaid, depending on the employer's policies and the nature of the leave. Vacation time, on the other hand, is a paid time off benefit that allows employees to take a break from work for rest and recreation.

Is parental leave considered a leave of absence?

Yes, parental leave is a type of leave of absence. It includes maternity and paternity leave, and allows new parents time off to care for their newborn or adopted child. Parental leave can be mandated by state laws or provided as a benefit by employers.

Can an employer deny a leave of absence?

Employers can deny a leave of absence if it is not mandated by law (such as FMLA) and if the request does not meet the company's leave policy criteria. However, employers should make sure that their policies are applied consistently and fairly to avoid potential discrimination claims.

What happens to an employee’s job during a leave of absence?

During a legally mandated leave of absence, such as FMLA leave, an employee's job is protected, and they are entitled to return to the same or an equivalent position upon their return. For voluntary leaves, job protection depends on the employer's policies and the terms agreed upon when the leave was granted.

Are employees paid during a leave of absence?

Whether an employee is paid during a leave of absence depends on the type of leave and the employer's policies. Mandatory leaves, like those under FMLA, are typically unpaid, though employees may use accrued paid leave, such as vacation or sick time, to cover some or all of the absence. Some employers offer paid leaves as part of their benefits package.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.

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