What’s the difference between paid and unpaid time off?
At Sesame HR, we understand that there are times when employees need to be away from work. To manage these situations clearly and transparently, time off is classified into two types: paid and unpaid.
Paid time off
This refers to time off where the employee is absent for a justified reason but still receives their salary as if they had worked their full schedule.
Example:
If an employee is scheduled to work 8 hours and takes 1 hour of paid time off, their schedule will show a 7-hour workday, but they will still be paid for 8 hours.
Common types of paid time off:
- Holidays.
- Sick leave.
- Maternity or paternity leave.
- Marriage or civil partnership leave.
- Bereavement leave (death of a family member).
Unpaid time off
This is time off where the employee is absent with the company’s approval but does not receive salary for the hours or days missed.
Example:
If an employee is scheduled to work 8 hours and takes 1 hour of unpaid time off, they will only be paid for the 7 hours worked. That hour can be recovered at another time; otherwise, it will not be paid.
Common types of unpaid time off:
- Personal matters.
- Family care (when not meeting the conditions for paid leave).
- Volunteering or social causes.
- Courses or training not related to the employee's job.
