Difference Between LOP And LWP - CiteHR
Mahr
Head - Human Resources
V. Balaji
Ir & Hr
+5 Others

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Dear Team, Can anyone explain the difference between LOP (Loss of Pay) and LWP (Leave Without Pay) Regards, Saravanan M
When the employee is not having leaves to his credit and dueto exegencies he has to go on leave and obtained approval for his absence then it is an approved leave with out pay and this type of leaves can not attract any disciplinery actions
LOP is a different process, even though the employee is having leaves to their credit and due procedure is not followed before going on leave and ultimately the said period of absence is going to be treated as Loss of pay ( absent). This absence period attracts disciplinery action.
Thanks and regards - kamesh

Dear All,
I am an HR Executive working in a Private firm. I have a doubts in Earned Leave policy.
Earned Leaves will be credited after one year i.e 12 months from the date of joining.
If an employee relieves the company in 10 months from the date of joining, is he/she eligible for earned leaves?? or is there is any minimum months to be worked by an employee??
Awaiting for your reply.
Thanks in advance.
Regards,
Priya

It depends upon the Company Policy, normally the eligibility of availing the Earned Leave is after completion of 240 days. The company may give the Earned Leave on Pro rata basis for 10 month if desires so.
Hi Sarachum,

LOP and LWP is how a company treats that according to their corporate policy.

LOP - Even an employees has a positive leave balance and goes on a leave without prior approval from his/her immediate supervisor, they would treat that particular day as LOP. Even on a strike day, if an employer is planning to give leave and to compensate that particular work day on a weekend, and an employees does not show up both the day, then he/she would be given a LOP. Also if an employee works on a weekend to complete his/her work due to lack inefficiency or guidance, that day would also be treated as LOP. Mostly it depends on how an employer frames the corporate policy.

LWP - LWP is unpaid leave of absence from employment, authorized or consented to by the employer. LWP is generally grated to an employee by sole discretion of the employer.LWP is mostly grated to full time employees who wanted to wanted to take time off from work. It is not necessary that an employee's leave balance should be zero. This mostly applies in cases where employee wanted to go on Sabatical and time to recuperate from an illness or injury that is not work-related. The best example for LWP in India is extended Maternity leave. LWP is not a right of an employee, this is granted by an employer highly considering the applicable employee strength and utilization.

Salary deduction in both the cases are almost similar and purely depends on the periodicity of absence from work.

Referring Ms Priya’s enquiry, Bombay Shops & Establishment Act, states -
(a) every employee who has been employed for not less than three months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive or otherwise, for a period of not more than five days.
(b) every employee who has worked for not less than two hundred and forty days during a year [irrespective of the date of commencement of his service,] shall be allowed leave, consecutive or otherwise, for a period of not less than twenty-one days.
The above statements conclude : After completion of 3 months attendance, employee is eligible for 5 days leave for 60 working days. You may calculate proportionate leave for 10 months. Eligibility starts, once a employee completes his three months from the date of joining.

LOP (loss of pay) and LWP (Leave without pay) are one and the same. However there is subtle difference. Loss of Pay is normally is awarded when you go on "absent" unauthorizedly. This means though you may have leave credt in your leave account, stll the boss can consider this as LOP as you did not inform about your leave.
Leave without pay is also that you are not going to get pay for the day. Albeit, there is an information (through leave card / phone call, etc.) about your leave to your department / HOD and this absence is authorized. However, you do not have leave credit in your account, therefore this is considered as loss of pay.
Hope you are clear
V. Balaji

when there is no leave balance and absence is essential, employee applies for leave and employer sanctions leave but for that leave period there is no pay, hence Leave Without Pay.
Loss of pay is a different concept. Pay is lost for some reason. e.g. damage or loss to employer\'s property. In this case employee works and is otherwise eligible to receive pay but pay is withheld and not pay which is a loss to employee. Hence loss of pay.

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