Understanding LWP: How Does Leave Without Pay Differ from Being Absent?

Hi, what is the full form of LWP? Please explain the difference between Leave Without Pay and Absence, as in both cases, we don't receive a salary. Is there any distinction between the two?

Regards

I presume you mean LWP = (LEAVE WITHOUT PAY) 'approved leave of absence but without pay'? Then the difference is the former is sanctioned leave of absence, and the latter is without approval.

It depends on how you use the term 'absent' really. You being absent does not mean it is not approved. Perhaps other members can shed more light on the matter for you as I'm not familiar with your labor laws and regulations and the terms that you use.

My humble thoughts.

Regards,
Ricardo

Absent - An employee not turning up to the office without informing anybody.

If an employee has necessary approval for availing leave and if he doesn't have any leave balance, he has to undergo loss of pay. This is Leave without pay (LWP).

Correct me if I am wrong.

Regards,
Saritha

Dear Pushpa,

As per our process, the following is the difference:

Absent - When an employee takes leave without prior permission/information. It is unpaid leave, even if the employee has a balance of paid leaves. It comes under the category of LWP.

LWP - It is unpaid leave when an employee has no balance left for paid leaves in their account.

Hope this helps you.

Regards,

Bhavna
www.vinove.com

Thank you all.

Now, I am well aware of the two terms as they have been clearly explained in your response emails. I would like to understand if Leave Without Pay (LWP) has any relevance when calculating or claiming benefits such as Earned Leave for the next year, Gratuity, Bonus, or any other benefit, or when filling out forms under the Factory Act like the Annual Return.

Regards

Dear Pushpa,

I can advise you only on earned leaves; LWP is not considered when calculating earned leaves.

Regards,
Bhavna
www.vinove.com

Dear Member,

I am replying as requested by you:

Absent: Absent means if any employee takes leave and is not present for duty without prior approval of any type of leave from their superior, such leave will be considered as absent, and their salary shall be deducted.

LWP: LWP means that if any employee takes approved leave but does not have any leave balance in their account, such approved leave will be considered as leave without pay.

ASHOK KUMAR
09350578043

Hi,

Puspa,

LWP means Leave Without Pay. There are two types of LWP: one is authorized, and the other is unauthorized. The unauthorized one is actually called absent. Both authorized and unauthorized LWP do not entitle the employee to any pay. For the computation of earned leave or gratuity, the authorized LWP is considered for determining the eligibility criteria, but the computation part is based on actual attendance. Normally, when no leave is due in any employee's account, he/she applies for authorized LWP. Other cases are considered based on merit or in the event of suspension for more than 4 days (as stipulated in the model standing orders or certified standing orders of the company, as the case may be) where no domestic enquiry is held, and/or subsistence allowance is paid for the period of suspension.

Regards

Dear Ashok Kumar,

Your clarification is very much justified. However, I would like to add one more comment on this:

Absent: Absenteeism carries a negative impression.

LWP: LWP carries a positive impression because in this case, employees proceed on leave only after being sanctioned by the competent authority.

I hope it is now more clarified.

Regards, Rahul

Hi,

Leave Without Pay only communicates that it's an unpaid leave. It could be both Authorized or Unauthorized. This could be understood in the following ways:

1. Paid Authorized Leave: Leave balance available and manager/authority has authorized that leave.
2. Unpaid Unauthorized Leave: No leave balance available, authority has not authorized the leave. This category would attract disciplinary action.
3. Unpaid Authorized: No leave balance; however, reason for leave is justified and manager has authorized the leave. However, as there is no leave balance, it becomes unpaid.

So, the expression LWP would only suggest that it's an unpaid leave. It can't tell whether it's authorized or not.

Hope this helps.

Thanks,
Rajesh

Using Rajesh's comments, you can use "absent" to describe Unpaid Unauthorized Leave, LWP as Unpaid Authorized Leave, and use Annual Leave or Earned Leave as Authorized Paid Leave, or simply say "Authorized Paid Leave." :)

Hi,

LWP means you have intimated/taken permission/applied for leave and management has given permission for your non-reporting to duty. On the other hand, absent is opposite to LWP.

RRTPAN

Hi Pushpa,

😃 You received many versions clarifying your doubt. Let me provide you with one final version. This is strictly from a management point of view.

Leave is a prerogative of the Management. Leave is considered 'granted' when you apply in writing to the Management, and the concerned authority communicates in writing that the leave you applied for is sanctioned. In all other situations, staying away from duty is termed as "absence." However, the categories of Casual leave and sick leave are not strictly implemented in this manner because absence in these cases is due to exigencies or illness. Generally, oral information is passed on to the employer, and it is "accepted" or presumed that your absence would be validly "regularized as leave" once you rejoin and submit your application for sanction. Hence, in such situations, each organization follows a different principle of either marking CL or SL or A for absent in the attendance register. However, from Management's point of view, until your application is clearly sanctioned, it is considered 'absence.'

Now, regarding LWP, as others explained, LWP can arise in three situations. Firstly, when your employer agrees to consider your absence as leave, but there is no eligible leave balance. Here, there is a technical constraint, and the leave is sanctioned as LWP and authorized. The second situation is when your employer is unwilling to sanction leave because you took sudden leave, and as a disciplinary action, decides to treat your absence as LWP. This is considered "Unauthorised absence" and is a negative record in your attendance/career. The third situation is when there is a family emergency, or you need to be away for important reasons for 2 or 3 months, either domestically or internationally. In such cases, you can 'apply' for LWP seeking special sanction. This is usually considered on a merit basis by Management and sanctioned according to their policy guidelines. Generally, each organization allows 12 to 18 months as LWP eligibility for extreme exigencies, to be sanctioned by the Board of Directors on a case-by-case basis.

Therefore, "Absence" is a term used "until" your application is sanctioned either as CL/SL/PL or authorized LWP leave or unauthorized LWP. Generally, where employees do not inform ahead, the employer simply marks "A" in the attendance.

I felt it necessary to inform you in this detailed manner because employees should not take the leave sanction procedure lightly. Providing prior information to the employer and promptly submitting a leave application upon rejoining should be taken 'very seriously,' otherwise, there may be negative record notations in your career profile regarding your laxity concerning leave rules.

😃😃 Hope this guidance is helpful to you.

Jyothi