If your staff need to take time off from work that isn’t covered by their contractual or statutory leave entitlements, then unpaid leave in Ireland is an option they can consider. However, you should consider the option carefully. As it’ll leave your business without a member of staff.
It may also prove an effective option for your business from time to time, such as during the coronavirus pandemic.
However, it’s an important leave option to understand and get right. So, in this guide we take you through your business’ standing.
What is unpaid leave?
It’s a term that describes a period of time an employee spends out of work without payment, but still retains their employment status. The length of a period of unpaid leave is agreed between the employer and the employee. In general, the employee will agree to return to work on a specific date and the employer will agree to hold the employee’s job open for them until that date.
However, staff don’t have an automatic entitlement to unpaid leave. It is a staff perk which you may choose to include as a discretionary policy in your contract of employment.
But if employees have a provision in their contract of employment, they can discuss the possibility of time off with you. Such as a career break (an extended unpaid leave period), or a chance for professional development.
It’s good business practice to consider a request, even if the provision isn’t there. Simply to show consideration and support for your staff member’s plans.
Other common forms of unpaid leave include career breaks, compassionate leave, or bereavement leave.
But can an employer force unpaid leave? No. You should remember that forced unpaid leave isn’t legal in Ireland. You should never insist that staff take time off with no pay. If your business is short of work, you might be able to rely on lay off or short time working entitlements to deal with a temporary shortage of work.
Both employer and employee must agree the leave arrangements in order for you to be able to go ahead with unpaid leave from work.
If you offer employees the option to take periods of unpaid leave, you should include the relevant information in your contract of employment.
You may even develop an unpaid leave form in which employees can explain their reasons for needing the time away.
The types of unpaid leave
Employees have certain statutory entitlements to unpaid leave as well as any discretionary unpaid leave options you provide. Statutory unpaid leave options include:
- Parental leave, and
- Carer’s leave.
As it is not always possible to find unpaid leave alternatives to keep employees working, it is a good idea to include lay off and short time working clauses in your contract of employment to deal with shortages of work.
Details on unpaid sick leave
Remember, as an employer you don’t have any legal obligation to pay staff if they’re off sick.
You should establish an unpaid sick leave policy explaining your business’ stance on this. As you can choose to offer employees pay while on sick leave.
But this is entirely up to you as a business.
Unpaid leave due to the coronavirus pandemic
During the COVID-19 crisis, many businesses are having to take an unprecedented approach to ensure staff can remain with a business.
And that they manage costs to ensure the company stays afloat. With many employees experiencing childcare issues and your duty as an employer to protect vulnerable employees, you may have to look at offering periods of unpaid leave due to coronavirus.
However, with government income support schemes now being wound down, employees are less likely to want to take extended unpaid leave due to coronavirus.
Unpaid parental leave
Under the Parental Leave Act 1998 as amended, if parents have children under the age of 12 they can take 26 weeks of unpaid leave to care for that child from September 2020 (previously it was 18 weeks per child).
If a member of staff requests this from you, then you have an obligation to consider the request and find suitable alternative arrangements if the employee’s proposed dates conflict with your operational requirements.
Your employees’ unpaid holiday entitlement
There is no unpaid holiday entitlement in Irish employment law. Any period of unpaid leave must be agreed between the employer and employee.
Need advice on unpaid leave in Ireland?
Do you have an employee requesting unpaid leave? Our HR and employment law experts are here to support you. Speak to us today on 1800 719 216.
