12 types of paid and unpaid leave and time off (2023)

*This post was updated on 09/11/2022.

If you work in Human Resources or are a department or team leader, you are likely to be asked regular questions about at least one of the following six things: 1) Compensation 2) Hours and hours 3) Employee benefits 4) Holidays/time off 5) Promotion opportunities and 6 ) work culture or work environment. I always like to guess which of these six questions are asked first when interacting with new hires. I think it's almost certainly number 4: the theme of holidays and free time.

(Video) Leave it to Us Your HR Guide to Paid & Unpaid Leave

People love their free time at work, at least in theory. It's certainly an important question for new hires, candidates or employees; Whether it's paid or not is a common question, especially if your organization has a crazy calculation of time off or a policy that allows employees to borrow hours before they're earned. unfortunately,US employees typically leave an estimated 429 million paid vacation days on the table each year.

Labor laws, policies and working time calculations are confusing

There are few things I liked less about HR than sitting with employees who had questions about how their paid time off was calculated and why they were hundreds of hours behind. They are complicated, confusing and remind me a lot of my MBA Advanced Finance course.

I had an employee who has not been able to take paid leave for over three years because she has not worked enough hours in the past three years due to FMLA and extended sick leave. So he continued to take unpaid time off until he completed 2,040 hours a year and qualified for the FMLA. Eventually we got in touch with the company pensions department and found a way for her to pay for the unearned leave she had already taken over a 10 month period so that she could start earning her normal leave again.

I don't think we can communicate enough about the types of time off employees get, whether they're paid or not. Free time is one of the most popular topics on the blog as it is related to itday off for tax-exempt or non-exempt employees. Blog readers have all sorts of questions, from questions about how vacation time is used for employees on leave, how vacation pay is calculated, towhen employees are eligible and protected under the FMLA.Judging by the traffic on our recreational series, it's likely that your team members Googled recreational routes at some point while working for your company.

(Video) Should Employers Allow Unpaid Time Off

States requiring employers to provide paid leave

I would add that a growing number of US states and cities require employers to provide paid time off. The requirements for each state are different, but I see this trend continuing, with states like California, Connecticut, and New York leading the way. Currently 11 states and Washington, D.C., plus more30 locations require paid sick leave.

Types of paid time off

Vacation(Includes unlimited vacation and regulated vacation). Depending on how leave is calculated, employees can earn it after a year and use it immediately upon receipt. Vacation entitlement was the most popular question from employees. Our HR team went so far as to develop custom Excel spreadsheets that allowed employees to forecast their vacation times for future use.

maternity leave(maternity and paternity leave). Paid leave for new parents for an organization specific extended period. Many organizations are now offeringpaid paternity leavelike Netflix and Amazon. Several states and cities are now requiring employers to grant paid parental leave. I expect the number of protective laws to increase significantly over the next 10 years. See diagram above.

sick leave.Exclusive time off when you or a dependent family member is ill and unable to work. Employees typically accumulate this time by pay period or month.

paid vacation(PTO). Companies often use PTO, which combines sick leave and vacation into one.

bereavement leave(burial permit). Bereavement leave and looking after personal matters after the death of a close relative.

(Video) Type of Leaves in a company | Paid leave|Unpaid leave|Compensatory Leave|Bereavement Leave

transgression(Paid out). Depending on your company's policy, some organizations provide paid leave and time off from work for situations that do not qualify or replace disability insurance. I once worked for a company that had a paid vacation policy of up to 12 weeks before employees were required to take FMLA time off.

military license(Paid out). Workers are entitled to paid military leave if their military service during the leave is less than the worker's salary in their organization under a labor lawUSERRA. Please note that USERRA (United Services Employment and Reemployment Rights Act) does not have an employee limit. All employers are required to comply.

vacation pay.Holiday pay is used during normal holidays such as Christmas, Thanksgiving, New Year's, etc. Employees should check their company's policies to see which holidays are included and whether there are policies for full-time and part-time employees regarding vacation pay. Having worked in retail for many years, these were some of the most common questions I've encountered.

Sabbatjahr.Traditionally offered in education,Sabbaticalsare increasingly common in the private sphere. Employers allow employees to take paid time off to explore their passions, interests, education, or research. The length of a sabbatical and its availability depends on your employer.

Types of unpaid leave

- Transgression(I do not pay). Unpaid time off when an employee has used up all of their paid time off and vacation. Employers who offer LOA without pay are not required to follow the FMLA and will adhere to other rules and requirements.

– maternity leave.(I do not pay). Unless you live in California, New Jersey or Rhode Island or your company offers paid paternity leave, as a parent you are taking unpaid leave. Professional Advice: The new birth mothers can qualify for disability insurance and receive a percentage of their payments while on vacation, as long as you review the insured's benefits before speaking to your boss or company human resources.

(Video) PTO FAQ: 10 Common Questions and Answers About Paid Time Off Policies

– Military License(I do not pay). Workers who are part of the National Guard and become an active-duty soldier may retain their employment as an active-duty soldier for an extended period of time, regardless of the size of the employer. Employers should inform themselves about USERRA as described above.

– Unpaid personal time off.In the modality of reducing the working time of an unpaid working day. This may be for intermittent FMLA, personal time off, illness or vacation. The employee is not compensated for this unpaid time.

– Medical license (FMLA).When an employer qualifies for FMLA, workers can take up to 12 weeks of unpaid leave to care for themselves, a family member and the military. Employees must have worked 12 months and worked 2040 during those 12 months. There are some additional specifications that you can check in your company manualclick here.Your eligibility to extend your leave beyond the FMLA 12 weeks is determined by policies set by your employer.

– Sick leave (no FMLA).Sick leave for an employee not qualified for FMLA or when an employer is not required to offer FMLA. You should consult your company's handbook to find out how much sick leave you are entitled to and alsoClick hereDetails of the Family Leave Act.

- Permission.These are layoff employer alternatives where you don't work but have access to benefits. Historically they were common among government employees, but in 2020 they have become more common as a layoff alternative during the COVID-19 pandemic.

Why is paid time off so elusive?

Most employers offer time off. This is standard across the range. What is not so normal is the issue of paid time off. Many employers still don't offer paid options, mainly due to two areas: full-time versus part-time employment and company size. A 2020, report byresearch bankfound that paid time off is a perk and benefit predominantly offered by large employers with more than 500 employees, with 91% of employers with 500 or more employees offering some form of paid time off as a benefit to their employees. A report from 2021development academy found that feeling appreciated is the second reason employees are happy at work, so maybe smaller companies should think more about it too.

(Video) The One Thing You Should NEVER Do If You Take A Medical Leave


What are the different paid time off categories? ›

PTO policies typically provide a pool of paid days employees can use for a variety of reasons. There are three main PTO strategies that employers use: accrual, allotment, and unlimited. PTO policies most often include national and floating holidays, paid vacation days, paid family leave, and paid sick leave.

What are examples of paid time off? ›

10 Types of Paid Time Off You Can Offer Employees
  • Vacation days. Vacation pay is paid time off you give employees to travel, spend time with family or friends, or take a break from work. ...
  • Sick leave. ...
  • Personal time. ...
  • Holidays. ...
  • Bereavement. ...
  • Parental leave. ...
  • Jury duty. ...
  • Voting time.
Sep 7, 2022

What is the difference between PTO and unpaid time off? ›

Workers can also take an unpaid leave of absence from work, which is an extended period of time away from work. Employers can offer unpaid time off in addition to or instead of paid time off. Paid time off is when employees earn their regular wages when they take off from work.

What's the difference between paid and unpaid leave? ›

Unpaid leave is time off from work where the employee does not receive pay, but retains their job. This is typically used when the employee's time off from work is not covered under an employer's existing benefits; like sick leave, paid vacation, paid holidays, and paid time off.

What are the 8 different types of work schedules? ›

10 examples of employee work schedules
  • Full-time schedules. ...
  • Part-time schedules. ...
  • Fixed schedules. ...
  • Flexible schedules. ...
  • Rotating shift schedules. ...
  • Split shift schedules. ...
  • On-call schedules. ...
  • Seasonal schedules.

What are 5 types of leave employees are entitled to? ›

In this section…
  • Check or calculate leave. Use our Leave Calculator to work out annual leave entitlements. ...
  • Get help with leave. ...
  • Public holidays. ...
  • Annual leave. ...
  • Sick and carer's leave. ...
  • Compassionate and bereavement leave. ...
  • Maternity and parental leave. ...
  • Family and domestic violence leave.
Jan 31, 2023

What is unpaid time off? ›

Unpaid time off (UTO) is an employee's absence from work that is not compensated by the employer. The unpaid leave of absence from work may be a short or extended period of time, depending on the policy permissions.

What are the most common paid time off practices? ›

Every PTO plan is different, but while traditional leave policies typically grant employees 30 paid days off per year — 10 days of paid vacation, 8 sick days, 2 personal days, plus 10 paid holidays, most PTO policies give employees between 15 and 20 days plus company-observed holidays, according to the Society of Human ...

How many unpaid leave can I take? ›

How many days' unpaid leave is an employee entitled to? There's very little law around unpaid leave. In particular, there's no maximum or minimum amount of unpaid leave from work that employees legally must have.

What are the different types leave of absence? ›

In general, different types of leave can be divided into voluntary, involuntary, paid, and unpaid leave. Voluntary leave is when an employee plans an absence from work, such as going on holidays. Involuntary leave is when an employee can't work due to medical reasons, a death in the family, etc.

Can an employer refuse to give you unpaid leave? ›

In the most part, unpaid leave comes down to employer discretion. That said, there are two areas where unpaid leave is protected by law: Caring or parental rights such as parental leave. Time off to carry out public duties, specifically jury service and magistrate duties.

What is 12 weeks of unpaid leave? ›

The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. It also requires that their group health benefits be maintained during the leave.

What reasons do you give for unpaid leave? ›

Common reasons staff might request unpaid leave include: Having a baby or adopting a child. Caring for family members. Dealing with a serious health condition or receiving medical treatment.

What's the difference between PFL and FMLA? ›

What is the difference between FMLA and PFL? FMLA is a federal law defining employee rights required of some employers to provide unpaid medical leave. PFL policies are state-paid regulations that vary from state to state and supersede federal law when the benefits are more generous than the national regulation, FMLA.

What are the 7 types of work? ›

Different types of employment:
  • Fulltime
  • Part-Time
  • Casual
  • Fixed-term contract
  • Apprenticeship
  • Traineeship
  • Internship
Jul 26, 2022

What is 12 hours work schedule? ›

Employees work four consecutive day or night shifts followed by four consecutive days off. Employees usually rotate between date and night shifts. The advantage of this schedule is that employees have plenty of time to rest and recuperate between their four days on.

What is a 12 hour compressed work schedule? ›

3) Three 12-Hour Days

To minimize the number of shifts per day, these businesses utilize a type of compressed work schedule that has employees working three 12-hour days. After those three workdays, employees receive four days off to rest and recuperate.

What are six types of staff leave? ›

There are numerous types of leave available to employees across all businesses. However, as an employer, you must inform your employees of all their leave entitlements.
What Are the Different Types of Leave?
  • Parental Leave. ...
  • Annual Leave. ...
  • Carer's Leave. ...
  • Compassionate Leave. ...
  • Long Service Leave. ...
  • Community Service Leave.
Jul 13, 2022

What is paid leave called? ›

PTO, short for Paid Time Off, is a period of time that an employee can take off work, while still getting paid by their company. Also known as annual leave or statutory leave entitlement, PTO leave means there will be no loss of earnings for the employee.

What are HR rules for leave? ›

The Factories Act of 1948 stipulates that each worker or employee who has worked a least 240 days in a calendar year is entitled to 12 working days of paid leave or annual leave. For adult and juvenile employees, paid or earned leave time durations vary (under the age of 15 years).

What type of leave are there? ›

Find out your eligibility and entitlements for different types of leave, including maternity leave, childcare leave, annual leave and sick leave.
  • Adoption leave. ...
  • Annual leave. ...
  • Childcare leave. ...
  • Maternity leave. ...
  • Paternity leave. ...
  • Shared parental leave. ...
  • Sick leave. ...
  • Unpaid infant care leave.

What types of leave do we have? ›

All other forms of leave that may not fit in the above list are classified as miscellaneous leave.
  • Annual Leave (Holiday Entitlement) ...
  • Compassionate Leave (Bereavement Leave) ...
  • Duvet Day. ...
  • Gardening Leave. ...
  • Maternity Leave (Parental Leave) ...
  • Paid Time Off (PTO) ...
  • Sabbatical Leave. ...
  • Sick Leave.

What is a 7 40 schedule? ›

18.4 For non-exempt classifications, the full-time workweek is a workweek of forty (40) hours within seven (7) consecutive twenty-four (24) hour days. In accordance with the provisions of Article 19, employees may be required to work overtime hours as directed by the Appropriate Administrator.

Does unpaid time off give you a point? ›

8 answers. No. Unpaid time off without accruing points.

What is on paid unpaid work? ›

This includes things like child care, elder care, medical care, and nutrition. Because these things are being provided by an unpaid domestic worker, the state does not need to expend resources to provide its citizens with these services.

What is paid time off from work? ›

What Is PTO? Paid Time Off (PTO) is a period of time, such as days or weeks, an employee is legally entitled to take off from work while still receiving pay from their employer. It is also known as statutory leave or annual leave.

Which of the following are examples of paid leave benefits? ›

Vacation, holiday, severance, or sick pay. Meal or rest periods, holidays off, or vacations. Premium pay for weekend or holiday work. Pay raises or fringe benefits.

What is another name for paid time off? ›

Paid time off (also known as PTO or personal time off) is compensated time away from work, provided by an employer to employees for them to use as they see fit.

What are the four most common pay periods? ›

The biweekly pay period is the most common, followed next by weekly, then semimonthly, then monthly.

What type of leave is unpaid? ›

Unpaid leave is a type of leave that allows employees to take time off work without pay. This leave can be used for vacation, personal days, sick days, or any other reason an employee may need to miss work. Unpaid leave can be taken at the employer's discretion and is typically not covered by unemployment benefits.

How do I get time off work for stress and anxiety? ›

How to get a stress leave from work
  1. Step 1: Look up your state's laws. ...
  2. Step 2: Review your employer's policy. ...
  3. Step 3: Consult your healthcare provider. ...
  4. Step 4: Request a doctor's note. ...
  5. Step 5: Time your request appropriately. ...
  6. Step 6: Meet with your human resources department. ...
  7. Step 7: Discuss your options.

Can I take a month off work? ›

In the US, it really depends on the employer and their policies. Some employers may be willing to allow an employee to take a month off of work for travel, while others may not.

What is casual leave? ›

Casual Leave

Casual leaves are the type of leaves used most by employees. People apply these office leaves for unforeseen events where they may need to take a day or two off from work to take care of personal matters. Most companies allow casual leaves of up to 3-5 days a month with the employer's approval.

What is special leave for? ›

Grounds for filing Special leave petition

So, SLP provides the aggrieved party special permission to be heard in the Supreme Court in an appeal against any judgment or order of any Court or tribunal in India.

Can I get compassionate leave? ›

You have the right to take time off work to deal with an emergency involving someone who depends on you. This is sometimes called 'compassionate leave'. Your employer can't penalise you for taking the time off, as long as your reasons for taking it are genuine.

How do I request unpaid leave? ›

How to Ask Your Boss for an Unpaid Leave to Travel, Study, or Spend Time with Family
  1. What the Experts Say. ...
  2. Know your value and the risks. ...
  3. Define your objectives. ...
  4. Look for precedents. ...
  5. Consider potential objections. ...
  6. Make the business case. ...
  7. Choose the right time but be flexible. ...
  8. Be ready for the “no” — or the “yes”
Feb 5, 2019

How is unpaid leave calculated? ›

If unpaid leave is granted, the calculation is based on the average number of working days per period. For example, in the case of a monthly paid employee who works 5 days a week, their salary would be divided by 21.67* to calculate the amount that would be deducted for every day of unpaid leave.

Do you accrue leave while on unpaid leave? ›

Annual leave doesn't accumulate when the employee is on: unpaid annual leave. unpaid sick/carer's leave. unpaid parental leave.

How do you explain rolling 12-month period for FMLA? ›

Under the ''rolling'' 12-month period, each time an employee takes FMLA leave, the remaining leave entitlement would be the balance of the 12 weeks which has not been used during the immediately preceding 12 months.

Is unpaid leave the same as termination? ›

Can they do this and how long can it last? Employers generally do not have the right to place an employee on unpaid leave. Employees can treat the unpaid leave as constructive dismissal and termination and pursue their severance. Employees can choose to accept unpaid leave if they wish.

What situation would qualify an employee for 12 weeks of unpaid leave under the FMLA quizlet? ›

covered employers to allow eligible employees to take up to 12 weeks of unpaid leave per 12-month period for the arrival of a new child through birth, adoption, or foster care, to care for a family member who is suffering from a serious health condition, or to deal with the employee's own serious health condition.

Who is eligible for unpaid leave? ›

Be employed by their employer for at least 12 months, with at least 1,250 hours worked during that period. Be an employee of a public agency or a private-sector employer that employs 50 or more workers.

How much do you get paid in PFL? ›

For 2023, the maximum weekly benefit is $1,131.08. See the Updates for 2023 page for more details on what's new for 2023. If your average weekly wage is more than $100, the minimum benefit amount is $100. If your average weekly wage is less than $100, you will receive your full wages during a period of PFL.

How often does PFL pay? ›

Under the California Paid Family Leave (PFL) Act, you can receive payments for a maximum of eight weeks. Payments are between 60 and 70 percent of your weekly wages, calculated by the average earned 5 to 18 months before the start date of your claim. Note: You can opt to receive payments via check or debit card.

How much does FMLA pay? ›

You may receive up to 90 percent of your average weekly wage, depending on your income. A calculator to estimate your benefit payment is available at paidleave.wa.gov/estimate-your-weekly-pay.

What three categories might an employer separate PTO? ›

Companies typically offer one of these three options to choose from when determining the workings of their PTO policy: traditional paid time off, a PTO bank, and unlimited PTO.

What are the three categories of variable pay? ›

There are three types of variable pay programs: incentive programs, bonus programs, and recognition programs. The design elements for variable pay programs differ significantly based on the type of program.

What are the most common paid days off? ›

What Are the Most Common Paid Holidays?
  • Memorial Day.
  • Independence Day.
  • Labor Day.
  • Thanksgiving Day.
  • Christmas Day.
  • New Year's Day.

How many categories wages are classified? ›

There are three kinds of wages minimum wage, fair wage & living wage. At the bottom of the ladder there is the minimum basic wage which the employer of any industrial labour must pay in order to be allowed to continue in industry.

What are the different types of leave available for workers? ›

Types of leaves under Labour Law

Casual leave. Sick leave. Annual leave.

What are the four different types of pay? ›

The four major types of direct compensation are hourly wages, salary, commission and bonuses.

What are the 5 types of variable pay programs? ›

In the broadest sense, variable pay programs include annual incentives or bonus payments; individual incentive plans; lump-sum payments; technical achievement awards; cash profit-sharing plans; small group incentives; gainsharing; and payments for newly acquired skill and knowledge.

What are two common types of pay? ›

There are two main types of compensation:
  • Direct compensation (financial)
  • Indirect compensation (financial & non-financial)

What are the 12 holidays per year? ›

The Federal paid holiday schedule includes New Year's Day, the Birthday of Martin Luther King, Jr., President's Birthday, Memorial Day, Independence Day, Labor Day, Indigenous Peoples Day, Veterans Day, Thanksgiving Day, and Christmas Day, in that order.

Who gets the most paid time off? ›

Iran is the most generous country when it comes to paid time off, with 27 holidays and 26 days of paid leave contributing to a total of 53 paid vacation days.

Who has the most paid time off? ›

Iran has the most statutory annual vacation days in the world (53), with a clear week's worth more than second-placed San Marino (46). As well as a reasonable 26 days of paid leave, Iran has nearly a month of public holidays (27 days), which is more than any other country.

What do you mean by wage rate Class 12? ›

: the amount of base wage paid to a worker per unit of time (as per hour or day) or per unit of output if on piecework.

What are the 5 types of employees? ›

The most common employee classifications include:
  • Part-time employees.
  • Full-time employees.
  • Seasonal employees.
  • Temporary employees.
  • Leased employees.
Feb 16, 2023

How many types of payrolls are there? ›

Four Types Of Payroll Systems.


1. Holiday Pay & Time Off - Your Questions Answered
(Lawyer You Know)
2. Family Medical Leave Act: Top 5 Violations
(Ottinger Employment Lawyers)
3. Family Medical Leave Act (FMLA) Explained by an Employment Lawyer
(Branigan Robertson)
4. Day 4: Turn Unpaid Leave Into Paid Leave
(Chris Guillebeau)
5. Paid Leave In The US vs. The World - Cheddar Explains
6. Amazon Time Off System, How UPT, VTO, PTO, Vacation Time, And Leave Of Absence Works
Top Articles
Latest Posts
Article information

Author: Frankie Dare

Last Updated: 01/22/2023

Views: 5904

Rating: 4.2 / 5 (73 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Frankie Dare

Birthday: 2000-01-27

Address: Suite 313 45115 Caridad Freeway, Port Barabaraville, MS 66713

Phone: +3769542039359

Job: Sales Manager

Hobby: Baton twirling, Stand-up comedy, Leather crafting, Rugby, tabletop games, Jigsaw puzzles, Air sports

Introduction: My name is Frankie Dare, I am a funny, beautiful, proud, fair, pleasant, cheerful, enthusiastic person who loves writing and wants to share my knowledge and understanding with you.