Unpaid Leave | Meaning and Definition

What is Unpaid Leave?

Unpaid leave is defined as time off from work during which a worker keeps their employment but is not paid.

Unpaid leaves diminish an employee’s work time, days, weeks, or months and vary based on the employer’s demands. Companies frequently use a rotating furlough system, in which employees take their unpaid days at various points throughout the month. Another option is to implement unpaid leave all at once, spanning a few weeks or months.

In the event of a company failure, requiring employees to take an unpaid vacation can:

  •   Reduced costs
  •   Remove the need to hire new people.
  •   Keep existing employment safe.
  •   Maintain the business’s viability till the economy recovers. 

Unpaid leave has concerns that HR directors should be aware of:

  •   Employees who find work elsewhere
  •   Work progress and momentum are disrupted.
  •   Reduces the motivation, engagement, and productivity of the remaining workers.

Steps to improve employee engagement

Here are some of the steps to improve the employee engagement in an organization by HR professionals:

  • Increase Employee Autonomy- Challenging times push individuals to think about their responsibilities. It is the moral duty of HRs to develop problem-solving skill and resourcefulness inside employees so that they can perform better.
  • Express Appreciation- By expressing the appreciation for the efforts that employees have put or the company helps to boost their motivation.
  • Cultivate Positivity- When employees are anxious and depressed there is a need to instill the positivity. Team-building and  fun activities helps to strengthen the relationship.
  • Two-way conversations- Keeping the employees informed about the changes helps to reduce the overall stress and anxiety of employees. Ask employees if there is any kind of help they need from the organization.
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