Employee Leave of Absence: 9 Steps Employers Should Follow

Suppose an employee tells you they need time away for surgery, cancer treatment, the birth of a child, or to care for a seriously ill family member. What happens next?

Handling an employee leave of absence involves more than whether you approve or deny their request. You'll also need to determine whether the absence is protected by federal, state, or local law, whether company policies apply, and what documentation and notices are required.

Missing an important step can lead to compliance issues, inconsistent treatment of your employees, and even costly legal disputes.

Here's what to know about what a leave of absence is and how you can navigate through each stage of the leave administration process.

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What Is an Employee Leave of Absence?

If you're asking, "what is a leave of absence from work?" you're not alone. In short, a leave of absence is an approved period when an employee is away from work for a specific reason. Depending on the circumstances, the leave may be paid or unpaid, protected by law or provided through company policy.

Leave of absence meaning can sometimes be confusing because there are several types of leave your employee might need, including:

• Continuous leave, where they're absent for an uninterrupted period.

• Intermittent leave, where leave is taken in separate blocks of time.

• Reduced schedule leave, where they temporarily work fewer hours.

It's also important to distinguish between leave and wage-replacement benefits. For example, the Family and Medical Leave Act (FMLA) generally provides unpaid, job-protected leave, while short-term disability insurance may replace part of an employee's income during that leave.

 How to Manage an Employee Leave of Absence From Work 

Managing an employee leave of absence requires a consistent process from the moment an employee raises a potential need for leave through their eventual return to work.

These nine steps can help employers address eligibility, documentation, pay and benefits, communication and other important leave administration responsibilities.

Step 1: Recognize a Potential Leave Request

The list of reasons for leave of absence from work can be long, and employees aren't required to specifically ask for FMLA or even use the words "leave of absence."

Instead, they may say they need surgery, have a serious health condition, are caring for a family member, or expect to miss work because of pregnancy. Any statement that suggests a potentially qualifying reason needs further review. Your managers and supervisors should be trained to recognize these situations and immediately notify HR or the person responsible for leave administration.

Some requests are easier to plan around, such as scheduled surgeries, while others happen unexpectedly due to emergencies or sudden illnesses. Regardless of timing, you should always respond consistently and start evaluating the request right away.

Step 2: Determine Which Rules May Apply

Before approving or denying leave, determine which laws or policies may apply. Depending on the situation, you may need to consider the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), the Pregnant Workers Fairness Act (PWFA), workers' compensation requirements, state or local paid leave laws, and internal company leave policies.

Additionally, more than one law can apply at the same time. For example, an employee may exhaust FMLA leave but still qualify for a reasonable accommodation under the ADA.

Step 3: Provide Required Notices

When a leave request may qualify under the FMLA, you must provide required notices within the applicable deadlines.

These generally include an eligibility notice telling the employee whether they qualify for FMLA, a rights and responsibilities notice explaining expectations and obligations, and a designation notice confirming whether the leave has been approved and designated as FMLA leave.

Step 4: Request and Review Certification

Medical certification is often an important part of leave administration. When appropriate, you may request certification supporting the need for leave. Once you receive the paperwork, review it carefully to ensure it's complete and sufficient.

If information is missing or unclear, you may request corrections or clarification through the appropriate process. In some situations, recertification may also be permitted if circumstances change or leave continues beyond the original expectations.

Step 5: Coordinate Pay and Benefits

An employee leave of absence from work doesn't always mean that the employee stops receiving pay or benefits, and you'll need to determine how leave will interact with paid time off (PTO), vacation or sick leave, short-term disability benefits, workers' compensation benefits, and group health insurance coverage.

If portions of the leave are unpaid, your employee needs to understand how health insurance premiums will be handled and what payments may still be required.

Step 6: Track Leave Accurately

Accurate leave tracking is essential for compliance, so be sure to document any continuous leave periods, intermittent leave usage, reduced work schedules, holidays and company shutdowns, and remaining leave balances.

Intermittent leave can be especially challenging because employees may use leave in small increments over an extended period. A reliable tracking system helps ensure leave is calculated correctly and consistently for every employee.

Step 7: Communicate During Leave

Communication should continue with any employee who's taking a leave of absence from work, and needs to stay appropriate and respectful. To do that, establish reasonable expectations for:

• Periodic status updates

• Changes to the expected return date

• Questions about benefits or payroll

• Return-to-work planning

Be sure your managers know not to request work, pressure employees to return early, or ask unnecessary questions about medical conditions, as confidentiality should also remain a priority.

Step 8: Prepare for the Employee's Return

As the leave period reaches an end, you'll want to prepare for a smooth transition back to work, which can include requesting a fitness-for-duty certification if permitted by law and previously disclosed in company policy.

Employees returning from protected leave are generally entitled to return to the same or an equivalent position. If medical restrictions remain, you may also need to evaluate reasonable accommodations under the ADA or other applicable laws.

Step 9: Document the Entire Process

Good documentation protects both employers and employees, so keep records of leave requests, required notices, medical certifications, leave usage, and employee communications, along with accommodation discussions, return-to-work documentation, and final employment decisions.

Consistent documentation creates a clear record showing that leave requests were handled fairly and in accordance with applicable laws and company policies.