Managing Leave Without Pay (LWOP)

You can manage leave without pay by creating leave categories that do not track the leave balance for an employee. This means you can create leave categories that employees are eligible to apply for without needing to accrue the leave first. You can also backdate a LWOP request by using the calculation in the below accordion.

Manage Leave Without Pay (LWOP)
  1. From the 'Business' menu, click 'Settings' and under Pay Run Settings click 'Leave Categories'
  2. If a 'leave without pay' category is not already there, create a new leave category and under the 'Employee leave balance' select list, choose 'Not Tracked' and click 'Save'.

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Now when a leave request is created using a leave category without a tracked balance, the leave balance is not checked

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When this leave request is used in the pay run, there is no change to the balance. In the pay run, there are no warnings about employees not having enough leave.

Backdate Leave Without Pay (LWOP)

Without advanced work week

  1. Log into your payroll platform.
  2. Click on Pay Runs.
  3. Select your pay run time period.
  4. Click on the employee taking LWOT.
  5. Ensure that the manager has approved the employee's LWOT request. Once they have, you will see the LWOP request in the pay run.

    Leave without pay request approved and appearing on pay run

The calculation works as follows:

Number of LWOP days x salary of the month of LWOP request /number of calendar days for the month of LWOP request = the LWOP deduction.

With advanced work week

  1. Log into your payroll platform.
  2. Click on Pay Runs.
  3. Select your pay run time period.
  4. Click on the employee taking LWOT.
  5. Ensure that the manager has approved the employee's LWOT request. Once they have, you will see the LWOP request in the pay run.

    Leave without pay request approved and appearing on pay run

The calculation works as follows:

Salary of the month of LWOP request/number of working hours for the month of LWOP request x number of LWOP hours = LWOP deduction.

Above will apply to LWOP deduction for:

  • Salary

  • Additional earnings in a pay run inclusion if the additional earnings incomplete month calculation option is set to The earning is pro-rated based on incomplete month formula.

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