When an employee takes a day off by applying for leave and does not work, no payment will be given. Loss of pay is calculated on a calendar day basis. Absence from work when an employee does not have sufficient leave but is granted permission to remain out. Therefore, an absence from work is considered authorized when an employee does not have enough paid leaves to their credit.
Also, some employers state that any leave not taken per company policy is considered a violation of leave policy. Employees must notify their supervisor of any planned absences before using earned leave and provide a medical certificate for sick leave. If an employer intends to give an employee leave and compensation for a weekend day on which a strike is scheduled, and the employee does not show up that day, the employer may permit the employee to take a weekend day off as paid leave is called Loss of Pay. If you work overtime to finish a project due to a lack of inefficiency or guidance, you won’t be paid for that day.
Some critical factors where LOP is not considered
1. Length of the contract: Depending on their company’s policy, employees on annual contracts can have their annual income included when the LOP formula is applied.
2. Nature of work: Certain categories of employees that perform hazardous duties may not be allowed to choose LOP.
3. Tenure: Probationary employees are generally not allowed leave of absence without a valid and urgent reason, such as injury, sickness, death in the family, etc.
4. Payment scale: Employees with managerial or high-end responsibility may not be eligible for certain benefits.
5. Additional benefits: Employees who work full time may be eligible to offset leave-of-absence pay against other benefits such as sick leave, vacation pay, bonus, and overtime.