Returning After a Long Unpaid Leave: What Are the Hidden Consequences of a Service Break?

Employee requested a long leave without pay. The leave was granted for six months. After six months, the employee requests to rejoin. The employer agrees with the condition that there will be a break in service and the term of employment will begin anew with the protection of salary. What are the hidden consequences of accepting this proposal?

Dear Sankara, In what capacity have you written this post? Are you the employee in question who had asked for a long leave, or are you from the HR Department and referring to an employee from your company? Is it that you are a third party witnessing this incident?

The employee had asked for a long leave, and it was agreed to by the employer. The approval of the leave application, even without pay, is nothing but a commitment to continuity in employment. Now, why does the employer wish to back out? In that case, why did the employer approve the leave at all? The applicant could have been told to submit a resignation and could have been informed that his rejoining would be conditional or considered later. Clear communication is a prerequisite to maintaining the proper culture in an organization.

Employers are expected to be firm while making decisions. If the employer has changed stance after six months, then it shows his/her fickle-mindedness. Therefore, is it worthwhile to rejoin such a company? Why not avail of the better opportunity? Though the employee was without pay, his continuation has increased the length of his employment in the company. Why not take benefit of it?

Merits and Demerits of Rejoining the Company

a) If the employee rejoins, there will be a break in his/her career. Whether the employee joins the same company or any other, while availing of future opportunities, he/she will have to explain the reasons for the break.

b) If the employee rejoins, and if he/she is eligible, then he/she may apply for the payment of gratuity for his/her past tenure. However, to become eligible for the gratuity again, he will have to serve at least five years. In case the employer does not pay the gratuity, then the employee must obtain proper confirmation for considering the service even before the break.

c) If the employee rejoins, he could lose the seniority for the promotion, etc. The employer may or may not consider his past tenure.

d) If the employee rejoins, then he/she will have to carry a burden of favor by the employer. The employer could expect the employee to be indebted and might even take undue advantage of it.

Thanks,

Dinesh Divekar

Leave Without Pay and Rejoining Conditions

The employee in question was granted leave of six months without pay. Does he have any written proof for this? Was the leave granted with the continuation of other fringe or statutory benefits? If the answer is no, then you will be joining as a new employee. Your break period will not be counted as within continued service. There are statutory obligations on the company because of which the company will not be able to show you on continuous service records. Start fresh.

The indisputable fact that the long leave on loss of pay was already sanctioned by the employer indicates that the service of the employee has not been severed. Therefore, the employee has the right to rejoin upon the expiry of the sanctioned leave. There is no question of asking the employee to join afresh, foregoing his entire past service rendered. Whether the long leave on loss of pay would be counted for service benefits like continuity of service depends on the service regulations of the organization. If it is silent, the employer can use discretion to treat it as a break in service for terminal benefits like gratuity and other incidental service benefits such as promotion and increment, which cannot be questioned by the employee. However, asking him to rejoin afresh will not be correct as the leave of absence is an authorized one despite the loss of pay.