Employee Leaves: Understanding various types of leaves and their implications

Employee leave encompasses various types of paid and unpaid leave, essential for organizational compliance and competitive benefits. It reviews common leave types and their importance for enhancing employee experiences during life’s unforeseen circumstances.

By Douglas Wade, Attorney

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Table of Contents

1. What are the different kinds of employee leave?

2. Leave for vacation (Annual leave)

3. Family and medical leave (FMLA)

8. Holidays related to religion

9. Sabbatical leave

10. Bereavement leave

11. Military leave

12. Jury duty leave

13. Time off in lieu (TOIL)

14. Election day (holiday for voting)

15. Leave for protests

16. Study leave

17. Bad weather leave

18. Vacation time as a present

19. Additional kinds of leave

20. In sum

What are the different kinds of employee leave?

All across the world, companies provide their workers with various forms of unpaid, partially paid, and paid leave. Certain sorts of leaves are mandated by law, while others are offered at the employer’s discretion. It’s critical to have a solid awareness of these leave options if you want to maintain organizational compliance, offer competitive benefits, and give your staff a positive experience in the event of unforeseen life circumstances.

These are a few of the most typical (and uncommon) forms of work leave. We’ll talk about the things that company executives and HR specialists should be aware of. This post will examine various examples from throughout the world and largely focus on leave in the United States.

Leave for vacation (Annual leave)

Although paid vacation leave is not mandated by federal law in the US, the majority of employers do offer paid time off to their staff. States also differ significantly in this regard. Paid time off, or PTO, is approached in three ways:

Annual vacation (a predetermined amount of days)

Days are accrued either monthly or quarterly in an accrual bank.

PTO that is unlimited (an endless number of days, which is becoming more and more common as workers look for a better work/life balance).

So, how does this compare to other countries?

For every year of employment, workers in Australia are entitled to at least four weeks of paid leave. Employees who work shifts have the right to five weeks off. In Canada, all states require employees to have two weeks of paid vacation time (with the exception of Saskatchewan and federal employees, who are entitled to three weeks). This is up to a maximum of four weeks and increases in various states in accordance with the years of service. Employees in Singapore are only guaranteed a minimum of seven days of paid leave. Executive and managerial staff, as well as domestic workers and sailors, are not entitled to statutory paid leave.

Family and medical leave (FMLA)

Under the FMLA, employees of public agencies or businesses with 50 or more employees are eligible for a maximum of 12 weeks of unpaid leave annually. To be eligible, workers must have put in at least 1,250 hours or 12 months of service for their employer in the previous year.

FMLA leave is applicable in the following situations:

Birth and care for an employee’s newborn child

Providing medical care for a member of their immediate family who has a serious illness

Requesting medical leave if their own illness prevents them from working

Leave for parents

Sometimes, paternity leave and maternity leave are combined to form parental leave. But companies are rapidly substituting the more inclusive phrase “parental leave for all” for this.

Although it is not legally mandatory for many businesses in many jurisdictions to provide paid maternity leave, the FMLA does allow every woman to take a maximum of twelve weeks of unpaid absence for any reason (including adoption). In the United States, only eight states—California, New Jersey, New York, Massachusetts, Rhode Island, Washington, Oregon, and Connecticut—offer parents and grandparents partially paid parental leave.

When it comes to maternity leave, certain European nations are significantly more generous. Specifically, Estonia allows working women to take care of their newborn at home for up to eighteen months while still receiving full pay. In the meantime, Japan provides newlyweds with a maximum of thirty weeks of paid parental leave, which is commensurate with their income rate.

Leave for illness

Although paid sick leave is not guaranteed by federal law, many employees can take unpaid time off for medical reasons under the FMLA. In the US, a lot of businesses decide to offer their staff paid sick leave. They accomplish this by providing an umbrella PTO policy or by assigning a certain amount of authorized days.

In contrast, paid sick leave is mandated in a large number of nations in Asia, Europe, and South America. The Netherlands is an extreme example, where workers recovering from an illness can miss up to 24 months of work and still be paid at least 70% of their regular wage during this time.

Unpaid leave

Should they run out of paid leave days or experience unforeseen personal circumstances, employees may need to take unpaid leave for a variety of reasons. Except for the FMLA, there isn’t much federal legislation governing unpaid leave, though. It implies that each company should establish its own policies and handle each situation as it arises.

National holidays

A specific number of paid vacations is often given to employees by US companies as part of their benefits package and pay. Hourly and part-time employees are less likely to be affected by this, though. Independence Day, New Year’s Day, Christmas Day, and Thanksgiving Day are a few of the most popular paid holidays. The last list of holidays that are covered differs depending on the organization. 97 percent of businesses reportedly provide paid time off for Thanksgiving, even though it’s not required by law.

In addition to paid time off (PTO), some companies grant their staff a fixed number of “floating holidays,” which allow them to take a predetermined number of paid days off in lieu of official holidays.

Employees in Singapore are entitled to paid time off during eleven public holidays. Should an employee be required to work on one of these holidays for any reason, they will typically receive double pay or a day off in lieu of work (TOIL). Below, we go over this kind of leave.

Holidays related to religion

Leave for religious observance is typically given to employees who want to take part in religious customs, festivals, or festivities that are not observed as public holidays. This leave is typically unpaid. For instance, people who practice Judaism in Australia are entitled to up to thirteen days off for holidays.

It’s crucial to note that, in most situations, these workers must submit documentation of their beliefs in order for their request for leave to be granted.

Sabbatical leave

The term “sabbatical leave” was first used in schools and universities to allow staff members to take longer than usual breaks while still working (for personal or research purposes). Sabbatical leave is one of the more popular forms of unpaid leave available today. According to a SHRM research, 5% of companies provided paid sabbatical leave to employees in 2018, compared to 10% that gave unpaid vacation.

Bereavement leave

When a loved one (typically a close friend or relative) passes away, an employee takes bereavement or funeral leave. Usually, this is how long the worker has to recover from their initial grief and attend the burial. It’s occasionally mistaken for compassionate leave, which is taking time off to care for an ill relative or a dependent.

In the US, bereavement leave is not required by law. Nonetheless, some companies do have internal policies in place for this, and others permit it as necessary. Bereavement leave is typically restricted to full-time employees who have worked for the company for a predetermined amount of time. In Canada, after working for the company for three months, workers are entitled to paid bereavement leave.

Military leave

Leave with full pay is granted to those doing certain forms of active or inactive duty in the National Guard or serving as Reserve members of the armed forces. In order to guarantee that employers hire back former National Guard members and active military personnel, the Uniformed Services Employment and Reemployment Rights Act was also established.

Various forms of military leave are offered based on the industry and duration of leave.

Jury duty leave

According to estimates from the National Center for State Courts (NCSC), 32 million persons receive jury summonses annually. Of those, 1.5 million are chosen to serve. Employers are not required by federal law to compensate workers for time off due to jury duty, while certain states do mandate this of its workforce.

In the UK, employees must be given time off to serve on juries. Even if it’s not required by law, many firms will pay their employees.

Time off in lieu (TOIL)

Many companies have a compensation policy called time off in lieu (TOIL). Rather of getting paid more, an employee may choose to take a certain amount of overtime as supplementary leave. For instance, if a worker was hired to complete forty hours of work per week but only completed forty-five, they would be eligible to request an additional five hours of paid time off “in lieu.”

When TOIL solutions are implemented, workers at a company are more likely to feel good about working extra, which boosts output. This is another excellent method of paying workers decently without straining a business’s finances.

Election day (holiday for voting)

Voting leave is time off on certain election days to guarantee that all voters have an equal chance to cast a ballot. States have different laws governing paid and unpaid leaves of absence for employees to cast ballots, even though federal law does not mandate such provisions. Numerous states, such as California and New York, mandate that employers cover at least one hour of their workers’ voting time.

On the other hand, polls are typically open in the US from approximately 7 AM until 8 PM. Most employees can now cast their ballots outside of regular business hours thanks to this.

Leave for protests

It is typical for citizens in America’s more democratic states and cities—such as New York, California, and San Francisco—to object to policies and laws made by the government. Therefore, in order to show support and mobilize for their beliefs during a large-scale protest, an employee could want to take time off from work. In Silicon Valley, a lot of companies have made protest time off part of their regular benefits package.

Study leave

When an employee wishes to expand their education—either formally, such as by attending college or by picking up new skills in another way—they are said to be on study leave. While many firms do not offer this kind of leave, it is typically given on an as-needed basis at the employer’s discretion.

An employee’s chances of being given study leave increase if they can show how their new abilities will aid them at work and, consequently, benefit the organization.

Bad weather leave

Employees may find it exceedingly challenging, risky, or even impossible to commute to work during certain weather conditions. A hurricane, sudden flooding, or a lot of snow are examples of such circumstances. A large number of workers will need to take leave off during these unfavorable conditions. The employee will frequently be able to use the period off as part of their yearly leave if they still have paid leave available.

Certain firms allow their employees to take days off, up to a maximum of 60 or 90 days, but they must make up the lost time at a later period. In order to request leave and specify the type of bad weather situation for which leave is needed, they have to submit a formal letter called a bad Weather Leave Letter.

Vacation time as a present

Finally, under certain situations, some companies give their employees time off as a present. For instance, if a worker marries or has a child in Japan, their employer would frequently give them unpaid leave. It’s a long-standing culture in Japan to treat employees with respect and gratitude rather than as a legal duty.

Additional kinds of leave

Your HR department may also decide to add additional leave categories, such as the following, to your leave policy:

ADA leave
Leave for temporary disability or short-term disability
Volunteer leave of absence
Permission to testify in court
Leave to be a court witness
Emergency leave

Remember that required and customary leave will vary by country and/or state.

In sum

Business executives and HR specialists should be knowledgeable about the many kinds of leaves of absence. In this manner, businesses may guarantee that workers feel appreciated and comfortable in their roles. It is imperative that you take into account and incorporate all relevant leave types when drafting your policy. It will assist your company in staying competitive and compliant in a constantly changing environment.

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