A leave of absence is an approved period when an employee is away from work, either paid or unpaid.
What is a leave of absence?
A leave of absence allows an employee to step away from work while remaining employed. In Australia, some types of leave are statutory entitlements under the Fair Work Act, such as parental leave or compassionate leave, while other types of leave of absence may be discretionary and governed by employer policy.
From an HR and workforce management perspective, leave of absence arrangements require clear rules around eligibility, duration, pay treatment and return‑to‑work expectations. Payroll plays an important role in ensuring leave is recorded correctly, paid or unpaid leave is treated accurately, and accruals are applied in line with employment terms.
Things to know
- Leave of absence can be paid or unpaid depending on the leave type
- Some leave types are legally required, while others are discretionary
- Leave arrangements affect pay, accruals and workforce coverage
- Clear policies support consistent treatment and planning
- Accurate recording is essential for payroll and compliance
FAQs
Is a leave of absence always paid?
No. Some leave of absence types are paid, while others are unpaid depending on legal entitlements and employer policy.
How does a leave of absence affect payroll?
Leave of absence arrangements determine whether pay continues, pauses or changes, and whether leave accruals continue during the absence.
Can a leave of absence affect employee entitlements?
Yes. Certain entitlements such as leave accruals or continuity of service may be affected depending on the type and length of leave.
Who approves a leave of absence?
Leave of absence approval is usually managed by HR or managers in line with organisational policy and legal requirements.
