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.

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

How to Manage an Employee Who Is Taking Too Much Sick Leave
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How to Manage an Employee Who Is Taking Too Much Sick Leave

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