Leave without pay and loss of pay


Is leave without pay and loss of pay different?


LWP - leave without pay, and LOP - loss of pay are used interchangeably but there are differences. Organizations label unpaid leaves as LOP Leave or LWP Leave.

LWP is used in the context of leave policy. When an employee has no paid leaves, organization upon request, allow to avail LWP for a few days and these are authorized absence. However in effect no pay for LWP days.

Now, let’s take loss of pay (LOP). It can happen as a result of LWP, unauthorized absenteeism (Eg;- Employee has not requested for leave but not reported for work), applied for leave but review pending, disciplinary issues like Late In/Early Out. So we could say LOP is a result of LWP and many leave / attendance processes or sub-processes.