Leave Without Pay

Leave without pay is a type of absence from work where an employee takes time off without receiving their regular salary or wages for the period of absence. This leave option is typically granted when an employee has exhausted all their paid leave entitlements or needs extended time off for personal, medical, or family reasons that exceed their available paid leave balance. Leave without pay serves as a flexible arrangement that allows employees to address important life situations while maintaining their employment relationship with the organization, though without compensation during the absence period.

What is Leave Without Pay?

Leave without pay (commonly abbreviated as LWP, where LWP leave full form stands for Leave Without Pay) represents an unpaid absence that is formally approved by the employer and documented in the employee's attendance records. This arrangement matters significantly in HR because it provides employees with the flexibility to manage extended personal commitments, medical treatments, educational pursuits, or family emergencies without having to resign from their positions. Unlike unauthorized absences, leave without pay is a mutually agreed arrangement that preserves the employment contract while temporarily suspending salary payments. The concept is widely recognized across global HR practices, though specific policies and regulations vary by country and organization. LWP typically impacts employee benefits such as provident fund contributions, gratuity calculations, and annual leave accrual, as the period is often excluded from continuous service calculations.