Skip to main content

Leave Without Pay (LWP)

  • Leave Without Pay (LWP) is a type of leave where an employee is permitted to be absent from work without receiving salary for the leave period.
  • This leave type is typically used when paid leave balances are exhausted or when unpaid leave is required as per company policy.

Create Leave Without Pay Policy

  • To create a new Leave Without Pay (LWP) policy, click on the + Add button on the Leave Code Policy List page.

Leave Code Policy Creation Page

After clicking + Add, the Basic Leave Details page will open as shown below:

LWP Leave Policy Page


Basic Leave Details

Configure the following fields:

  • Policy Name : Enter the name of the leave policy.
  • Leave Code : Select or enter a unique code for Leave Without Pay.
  • Description : rovide a brief description of the leave type.

Calendar Settings

Under Calendar Settings, configure the following options:

  • Leave Calendar :

    • Calendar Year – January to December

      • The leave year starts on 1st January and ends on 31st December.
      • All leave allotments, usage, carry forward, and year-end processing are calculated within this period.
      • This option is commonly used by organizations that follow the standard calendar year for HR and reporting.
    • Financial Year – April to March

      • The leave year starts on 1st April and ends on 31st March of the next year. Leave balances and carry forward are managed within this financial cycle.
      • This option is widely used by organizations that align leave policies with the financial year.
  • Policy Starts From :

    • Select the date from which the leave policy becomes active.

Year End Settings

Configure year-end behavior for the leave policy:

  • Year End Closing
    Choose between:

    • Auto : Balance is auto-updated on the first date of the new year.

    • Manual : Balance is updated after freezing the last month's attendance.

  • Allow Next Year Leave Requests

    • Disabled : Employees can apply only for this year’s leave.

    • Enabled : Employees can apply for leave for next year.


Basic Leave Policy Configuration

Leave Balance Entitlement

  • Choose when employees will receive their leave balance:
    • Date of Joining :

      • Leave balance starts from the employee’s first working day in the organization. Employees can apply for leave from the day they join.
    • Date of Confirmation :

      • Leave balance starts only after the employee is confirmed (post-probation). Leave cannot be availed before confirmation.

Leave Allotment Based On

Select how leaves are credited:

  • Monthly: You get some leave every month. For example, 1 leave on the first day of each month.

  • Quarterly: You get leave every three months. For example, 3 leaves in January, April, July, and October.

  • Half-Yearly: You get leave twice a year. For example, 6 leaves in January and 6 leaves in July.

  • Yearly: You get all your leave once a year. For example, 12 leaves on January 1.

  • One Time: You get leave only one time in the year. For example, 3 condolence leaves given at the start of the year and no more after that.


Number of Leaves per Cycle :

  • Specify the number of leaves allowed for the selected cycle.
  • This helps in tracking and limiting the usage of Leave Without Pay.

When Do They Get It?

Choose when the leave balance is credited:

  • Start of the Cycle: Leave is credited at the beginning of the cycle.

  • End of the Cycle: Leave is credited after the attendence is frozen (at the end).


Carry Forward

  • Allow carry forward? : Disabled
    Unused casual leaves will not be carried forward to the next year.

  • Allow carry forward? : Enabled
    Unused leave will be carried forward to the next year.


Who Gets This Leave

Under Who gets it, define the applicability rules for this leave type.

  1. Click Add rule
  2. Select applicable criteria such as:
    • SBU
    • Department
    • Unit
    • Location
  3. Use Any in or Not conditions to include or exclude employee groups.

Review and Submit

  1. Click Review Policy to verify all configurations.
  2. Click Submit to save the Leave Without Pay policy.

A confirmation message will appear after successful creation.

LWP Leave Policy Page

Policy Listing

Once created, the Leave Without Pay policy will appear in the Leave Code Policy List, displaying:

  • Leave code
  • Allotment details
  • Effective date
  • Status
  • Action options: View, Assign, Edit, Copy, History

Summary

  • LWP is an unpaid leave type
  • Salary is deducted for LWP days
  • Used when paid leave is unavailable or not applicable
  • Helps maintain accurate attendance and payroll records

Was this page helpful?