What is Loss of pay (LOP)?
LOP stands for “Loss of Pay.” It is defined as the deduction in salary due to leave taken by an employee when he/ she does not have adequate leave balance in the account. The loss of pay is calculated based on the per-day salary of an employee. If an employer plans to grant leave and compensate for that specific workday on the weekend on a strike day, and an employee does not show up both days, the employee will be given a loss of pay. Also, if a person works on a weekend to finish his or her task owing to inefficiency or lack of supervision, that day is considered LOP.
Factors Counting for LOP In Salary
- Employment Contract Length – Depending on the corporate policy, certain employees on an annual contract will have their yearly pay taken into account when LOP calculations are conducted.
- Nature Of Working – Employees who operate in industries that are considered vital and dangerous to other employees may not be eligible for LOP.
- Scale Of Pay – Employees that high-level positions may not always be provided with the scope of availing LOP.
- Discretion Of the Company – When a valued employee has been sick for more than six months, has a bad attendance record, or has not been able to satisfy the company’s job needs, LOP will be granted.