Every employee deserves to have time away from the job in which they can pursue activities to relax, unwind or do pretty much whatever they want in – provided they’re legal, of course. But for employers, finding a balance between offering paid leave to employees, and keeping their business running smoothly, can be tough.
While time off from work is necessary for a whole host of reasons, if you’re a new employer and are unfamiliar with the many different types of leave available, the following guide should help you. For further, detailed information, seek guidance from a payroll expert:
Paid time off and unpaid leave
Paid Time Off (PTO) is not mandated at a federal level, but there are few employers who don’t include it in their benefit package, for obvious reasons.
PTO can be given to employees in a number of different ways, including the following:
- Accrual – PTO can be accrued based upon hours or days worked, and most employers place a limit on the number of days that an employee can accrue before they need to start taking them.
- Allotment – a set number of PTO days are given to each employee every year, and unused days may or may not be carried over to the following year, depending upon each individual company’s policy.
- Unlimited – with the approval of a manager, employees can take as much PTO as they want/need.
When it comes to unpaid leave, it’s pretty self-explanatory: the employee can take time off from their job, but they won’t get paid for it.
Family Medical Leave Act (FMLA)
This act was put into law back in 1993, and was designed to help those employees who were eligible, to keep their jobs while dealing with medical issues that kept away from work. If your company employs 50 or more workers, you’re required as an employer, to provide them all with a maximum of 12 weeks unpaid leave while their job remains protected.
Below are some of the reasons this type of leave can be taken for:
- Giving birth, adopting or fostering a child
- A documented health condition that renders the employee unable to work
- Caring for an immediate family member with a serious health condition
Parental leave
More commonly referred to as maternity or paternity leave, this benefit is often given by companies to try and recruit young talent.
Disability leave
Overlapping with FMLA, disability leave also allows for a leave of absence for documented physical or mental limitations that impact upon the employees ability to fulfil their role. The Americans with Disabilities Act (ADA) gives employees the right to take a leave of absence or ask for reasonable accommodations to be made within the workplace to help the fulfil their role with their limitations.
Military leave
This type of leave is typically dictated by federal law.
Bereavement leave
The majority of employers offer their workers some sort of paid or unpaid leave when a close relative or person of significance dies, even though it isn’t law, as it can help to maintain a positive company culture.
Jury duty
Because jury duty is a legal requirement, the federal government mandates that employers offer their employees unpaid leave if they’re summoned to serve on a jury.
Holidays
Whether federal or religious, these holidays vary in eligibility for employees based upon several factors.
Getting your head around the many different types of employee leave is made easier when you outsource your payroll requirements, and with their experience and in-depth knowledge of employer laws, they’ll keep both you and your employees, happy.