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.

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Last updated December 18, 2024

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Suitable for Australia

Unpaid Leave Policy

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What is a unpaid leave policy?

An unpaid leave policy sets out the rules and procedures for employees to request time off work without pay when they are not entitled to paid leave or have exhausted their paid leave entitlements.
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When should you use a unpaid leave policy?

You should use an unpaid leave policy when you want to provide clarity for employees about requesting unpaid time off and to ensure all leave requests are managed fairly and consistently within your organisation.
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What should be in a unpaid leave policy?

A good unpaid leave policy should include the process for requesting leave, approval requirements, factors considered when assessing requests, and the company’s right to decline requests if they conflict with business needs.
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Frequently asked questions

Who is this policy suitable for?

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Does this policy guarantee approval of unpaid leave requests?

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What protections does this policy provide for employers?

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Can this policy help guide managers in handling leave requests?

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Are there risks for employees under this policy?

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What should employees do before requesting unpaid leave?

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How often should this policy be reviewed or updated?

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View Sample Unpaid Leave Policy

Unpaid Leave Policy
risk level indicator at Low level

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.

Meet Our Users

Articles about Unpaid Leave Policy

Do Casual Employees Have Leave Entitlements?
By Justin Pasqualino|Nov 2, 2018

Do Casual Employees Have Leave Entitlements?

Your rights as a casual employee

Is It Illegal If I Do Not Pay My Staff Sick Leave?
By Paul Taylor|May 24, 2024

Is It Illegal If I Do Not Pay My Staff Sick Leave?

Paying staff sick leave that employees are entitled to is extremely important. Read about the different factors that determine these responsibilities here.

Australia’s Paid Parental Leave Rules
By Angela Omari|Nov 26, 2025

Australia’s Paid Parental Leave Rules

Australian parental leave is paid and unpaid. Find out more about Australia's paid parental leave for mums and dads here.

Can Casual Employees Take Sick Leave?
By Gianluca Tripodi|May 28, 2025

Can Casual Employees Take Sick Leave?

Casual employees have different entitlements when it comes to paid leave. Find out here whether casual employees can take sick leave.

How Does Negative Leave Work?
By Shantelle Dang|May 15, 2025

How Does Negative Leave Work?

Are you wanting to lock-in that summer vacation but haven’t accrued enough leave? Find out how negative leave could work for you here.

Can An Employee Be Terminated While on Sick Leave?
By Ilyas Omari|May 14, 2025

Can An Employee Be Terminated While on Sick Leave?

Can an employee be terminated while on sick leave? Read this article to find out when employers can do this.

Is Annual Leave Loading Payable on Termination?
By Tom Willis|Nov 28, 2025

Is Annual Leave Loading Payable on Termination?

Many employers are unsure of whether employees should be paid annual leave loading when employment ends. Find out the rules here.

9 months On, 2 weeks Off
By Dominic Woolrych|Sep 1, 2015

9 months On, 2 weeks Off

Read about Marissa Mayer's plans for her pregnancy and the maternal leave policies at Yahoo and Netflix which give future mothers more freedom.

How Does Compassionate Leave Work?
By Daniel Lim|Feb 20, 2024

How Does Compassionate Leave Work?

Compassionate leave occurs when an employee takes paid or unpaid time off to care for someone within their immediate family.

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