Unpaid Leave Policy
This Unpaid Leave Policy can be used to help your employees feel comfortable requesting time off if they do not have an entitlement to paid leave or have run out of paid leave. This Policy also clarifies that the Company is under no obligation to approve such leave that is incompatible with the Company’s needs.
Last updated December 18, 2024
Suitable for Australia
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Frequently asked questions
Use this Policy if:
- You want to help your employees feel comfortable raising a request for unpaid leave, while giving you the right to decline where this is not compatible with business needs;
- You need to ensure that employees are aware that all requests for leave need to be approved, and leave cannot be taken without authorisation; and
- You want to provide guidance to management staff on how to approach requests for unpaid leave by staff.
What does this Policy cover?
- The process for unpaid leave requests by employees;
- Key factors that are considered by the Company when an unpaid leave request is received;
- A clarification that leave needs to be authorised to be taken; and
- The right of the Company to decline a request for unpaid leave.
Further information:
View Sample Unpaid Leave Policy
The Legal Risk Score of a Unpaid Leave Policy Template is Low
Our legal team have marked this document as low risk considering:
- There is a risk that unpaid leave requests may not be approved as the company’s needs and fairness to other employees are considered alongside individual circumstances, potentially leaving some employees unable to take needed leave.
- The policy does not obligate the company to provide unpaid leave, which could lead to unpredictability and inconsistency in how leave requests are handled.
- The requirement for prior authorization before taking leave or failing to attend work implies a risk of disciplinary action if not followed, which could impact employees who find themselves in sudden or emergency situations.
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