Leave of Absence Meaning, Duration and Best Practices for Employers

A leave of absence (LOA) is a period away from work granted to employees by their employers. One can use it for various reasons, such as personal health issues, family emergencies, or extended vacations. During this period, the absent individual remains an employee of the company.

Leaves of absence can be paid, or unpaid leave of absence and may be taken for various reasons, including personal or medical issues, family responsibilities, or educational opportunities. Absence leave, often taken without pay, is subject to specific legal frameworks like the FMLA, and eligibility and duration can vary across different jurisdictions.

Employees need to be familiar with their company’s policies and procedures for requesting a leave of absence and any applicable federal or state laws that may provide job protection or other rights during a leave of absence.

Reasons for taking a leave of absence

The duration of a leave of absence (LOA) can vary significantly depending on several factors:

• Type of Leave: Different types of leave have different standard durations. For example:

• Parental leave: Can range from a few weeks to several months, depending on the country’s laws and company policies.

• Medical leave: The duration depends on the severity of the medical condition and the recommended treatment plan.

• Sabbatical leave: Typically lasts several months or even a year.

• Company Policy: Each company has its own specific policies regarding leave durations, eligibility criteria, and approval processes.

• Individual Circumstances: The length of a leave can be determined based on the specific needs of the employee, such as the severity of a medical condition or the requirements of a particular situation. In special circumstances, such as illness or bereavement, an extended period of leave may be granted to ensure the employee's position is secure upon their return.

• Legal Requirements: In some countries, there are legal requirements that set minimum and maximum durations for certain types of leave.

It’s important to note that leave durations can be negotiated between the employee and the employer, but it’s always advisable to adhere to company policies and legal regulations.

To determine the exact duration of a leave of absence in a specific case, it’s best to consult the company’s HR department or refer to the relevant employment contract and company policies.

The main difference between paid and unpaid leave of absence is whether or not the employee continues to receive their regular salary and benefits during the leave period.  

Paid leave of absence

Salary and Benefits: The employee continues to receive their regular salary and benefits, such as health insurance, during the leave period.

Common Types:

• Vacation time  
• Sick leave  
• Personal leave
• Maternity leave (in some countries)
• Paternity leave (in some countries)
• Bereavement leave  

Unpaid leave of absence

Salary and Benefits: The employee does not receive their regular salary or benefits during the leave period.  

Common Types:

• Family and Medical Leave Act (FMLA) leave 
• Military leave
• Sabbatical leave
• Personal leave (if not covered by a paid leave policy)
• Unpaid medical leave  

Here is a table summarizing the key differences:

It is important to note that the specific terms and conditions of paid and unpaid leave can vary depending on the employer's policies, applicable laws, and the specific circumstances of the leave. It is always best to consult your employer's HR department or a legal professional for guidance on your specific situation.

The Family and Medical Leave Act (FMLA) is a federal law that provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons. These reasons include:

• The birth of a child and to care for the newborn child within one year of birth;

• The placement with the employee of a child for adoption or foster care and to care for the newly placed child within one year of placement;

• To care for an immediate family member (i.e., spouse, child, or parent) with a serious health condition;

• To take medical leave when the employee is unable to work because of a serious health condition; or

• To care for a covered service member with a serious injury or illness. Eligible employees can take up to 26 weeks of military caregiver leave under this provision.

To be eligible for FMLA leave, employees must:

• Work for a covered employer.
• Have worked for that employer for a total of 12 months;
• Have worked at least 1,250 hours; and
• Work at a workplace where the employer has at least 50 employees within 75 miles of the jobsite.

FMLA leave is unpaid, but employers must continue to provide health benefits during the leave, although employees may have to pay for them yourself. Additionally, employers must hold the employees’ job and protect their seniority rights.

1. Establish a clear leave policy:

• Define Eligible Leave Types: Clearly outline the types of leave available, such as vacation, sick leave, family and medical leave (FMLA), bereavement leave, and personal leave.

• Set Eligibility Criteria: Establish clear criteria for each leave type, including minimum employment duration, job classification, and any specific requirements.

• Document Required Documentation: Specify the necessary documentation for each leave type, such as medical certificates, military orders, or other relevant proof.

• Include Specific Voluntary Leave Guidelines: Establish detailed company policies regarding voluntary leave. These guidelines should clarify eligibility, job protection, and the process for requesting leave to ensure both employees and employers understand the conditions and expectations surrounding voluntary leave.

2. Review and approve leave requests:

• Formal Request: Require employees to submit a written request, including the reason for the leave, start and end dates, and any supporting documentation.

• Review and Verification: Review the request, ensuring it meets the eligibility criteria and necessary documentation is provided.

• Communicate with Employee: Inform the employee of the decision, including any conditions or limitations on the leave.

3. Manage employee's absence:

• Assign Work: Redistribute the employee's workload to other team members or consider temporary replacements.

• Maintain Communication: Stay in touch with the employee during their leave to address any concerns or questions.

• Update Records: Update employee records to reflect the leave of absence, including start and end dates, reason for leave, and any relevant documentation.

4. Plan for the employee's return:

• Coordinate Return-to-Work: Discuss the employee's return date and any necessary accommodations or adjustments.

• Address Workload: Review the employee's workload and adjust as needed to ensure a smooth transition.

• Provide Support: Offer support and resources to help the employee reintegrate into the workplace.

Key considerations for employers:

• Legal Compliance: Ensure compliance with federal, state, and local laws, such as FMLA, ADA, and workers’ compensation regulations.

• Employee Rights: Respect employee rights and privacy, especially when dealing with sensitive medical or personal information. Consider offering voluntary leave as a discretionary benefit to enhance flexibility in managing employee time off. Clear policies and guidelines regarding eligibility and the circumstances under which voluntary leave may be granted are crucial.

• Workplace Impact: Assess the potential impact of the leave on team productivity and workflow.

• Documentation: Maintain accurate records of all leave requests, approvals, and documentation.

• Employee Support: Provide support and resources to help employees manage their leave and return to work smoothly.

By following these steps and considering these factors, employers can effectively manage leave of absence requests, maintain a positive work environment, and ensure compliance with legal obligations.

In some cases, employees may need to extend their leave of absence beyond the initial period. This can be due to a variety of reasons, such as a prolonged illness or a family member’s ongoing health needs. Employers may choose to grant an extension of the leave, but this is typically done on a case-by-case basis.

Under the FMLA, employees are entitled to up to 12 weeks of leave in a 12-month period. However, some employers may choose to offer additional leave beyond this period. It’s essential for employers to clearly communicate their leave policies and extension procedures to employees to avoid confusion and ensure compliance with applicable laws.

State laws and leaves of absence

State laws regarding leaves of absence can vary significantly from federal laws. Some states have enacted their own family and medical leave laws, which may provide more generous benefits than the FMLA. For example, California’s Paid Family Leave (PFL) program provides up to eight weeks of partial pay for employees who need to take time off to care for a family member or bond with a new child.

Employers must comply with both federal and state laws regarding leaves of absence. This can be complex, as state laws may have different eligibility requirements, leave durations, and notice procedures. It’s essential for employers to stay up-to-date on state laws and regulations to ensure compliance and avoid potential penalties.

Terminating an employee who is on leave can be a complex and sensitive issue. Employers must ensure that they comply with applicable laws, including the FMLA and the Americans with Disabilities Act (ADA). Under the FMLA, employees are entitled to job protection during their leave, which means that employers cannot terminate them for taking leave.

However, employers may terminate an employee on leave if the reason for the termination is unrelated to the leave and would have occurred even if the employee had not taken leave. For example, if an employee is on leave for a serious health condition and the employer discovers that the employee has been engaging in misconduct, the employer may terminate the employee for the misconduct.

It’s essential for employers to carefully review their leave policies and procedures to ensure compliance with applicable laws and to avoid potential penalties. Employers should also consult with HR professionals and attorneys to ensure that they are following best practices and complying with all relevant laws and regulations.