Unpaid leave is time off work without pay that an employee takes by agreement with their employer. There is no general statutory right to unpaid leave in the UK, but several specific statutory situations — such as parental leave, dependant emergencies, and jury service — carry rights to unpaid time off. For everything else, unpaid leave is at the employer’s discretion.
This guide covers the statutory rights to unpaid leave, how employers typically handle discretionary unpaid leave, and the key legal considerations.
Key takeaways
- There is no general statutory right to unpaid leave in the UK.
- Statutory unpaid leave exists for specific purposes: parental leave, dependant emergencies, time off for public duties, and trade union activities.
- Discretionary unpaid leave is governed by your employment contract and company policy.
- You can refuse unpaid leave requests that do not fall under a statutory right.
- Unpaid leave affects pension contributions, holiday accrual, and employment rights — clarify these in your policy.
Statutory rights to unpaid leave
UK employment law provides unpaid leave in specific circumstances:
Parental leave
Under the Employment Rights Act 1996, Part 8, parents can take up to 18 weeks of unpaid parental leave per child, up to the child’s 18th birthday. The employee must have at least one year of service and can take a maximum of 4 weeks per child per year.
Time off for dependants
Under s.57A of the Employment Rights Act 1996, employees can take reasonable unpaid time off to deal with emergencies involving a dependant. This applies from day one of employment.
Public duties
Employees who serve as magistrates, local councillors, or trade union representatives have statutory rights to reasonable time off for their duties. This is typically unpaid.
Jury service
Jury service is unpaid by the employer (unless the contract provides pay), though the court pays a daily attendance allowance.
Discretionary unpaid leave
For requests that do not fall under a statutory right, unpaid leave is entirely at the employer’s discretion. Common scenarios include:
- Bereavement — beyond the 2 weeks of statutory parental bereavement leave.
- Religious observance — time off for religious festivals or pilgrimages.
- Personal matters — extended time off for personal reasons.
- Career breaks — extended unpaid leave for travel or study.
You can grant or refuse these requests based on business needs, operational impact, and fairness. A clear unpaid leave policy ensures consistent treatment.
How unpaid leave affects employment rights
Unpaid leave has several implications:
| Element | Impact during unpaid leave |
|---|---|
| Pension contributions | Suspended — employee does not pay, employer does not contribute |
| Holiday accrual | Does not accrue for periods of unpaid leave longer than one week |
| Length of service | Continues to accrue (statutory rights unaffected) |
| Statutory pay | SSP, SMP, and other statutory pay may be affected if unpaid leave reduces earnings below the qualifying threshold |
| Employment rights | Unfair dismissal rights continue — a dismissal during unpaid leave is still subject to employment law |
Notice and approval
Employees should give reasonable notice for unpaid leave requests. There is no statutory notice period for discretionary unpaid leave — you can set your own requirements in your policy.
You should respond to requests in writing, stating whether the leave is approved, the dates, and any conditions (e.g., the employee must return for a minimum period after the leave).
Employer obligations
UK employers have four core duties around unpaid leave:
- Grant statutory unpaid leave — parental leave, dependant leave, and public duties are legal rights, not discretionary.
- Do not penalise employees for taking statutory unpaid leave — dismissal or detriment is automatically unfair.
- Apply your policy consistently — treat similar requests the same way.
- Clarify the implications — inform the employee how unpaid leave affects pay, pension, and holiday.
For more UK context, see our guides to time off for dependants, unpaid leave, and sabbatical leave.
Frequently asked questions
Is there a right to unpaid leave in the UK?
Not a general right. Statutory unpaid leave exists for specific purposes (parental leave, dependant emergencies). For everything else, it is at the employer’s discretion.
Does unpaid leave affect my holiday entitlement?
For unpaid leave of more than one week, statutory holiday does not accrue during the unpaid period. Your contract may provide more generous accrual rules.
Can my employer refuse unpaid leave?
Yes, unless the request falls under a statutory right (parental leave, dependant leave). For discretionary requests, you can refuse based on business needs.
Does unpaid leave affect my pension?
Yes. Pension contributions are typically suspended during unpaid leave. You should confirm the position with your pension provider and inform the employee.
Can I be dismissed while on unpaid leave?
Yes, but only for a fair reason and following a fair process. Dismissal during unpaid leave is still subject to employment law — you cannot dismiss someone simply because they are on unpaid leave.
Putting it into practice
Five steps keep your unpaid leave process fair:
- Create a clear unpaid leave policy covering both statutory and discretionary requests.
- Set a notice period for discretionary requests and apply it consistently.
- Inform employees about the implications for pension, holiday, and statutory pay.
- Track unpaid leave separately from other absence types for accurate records.
- Review the policy annually to ensure it aligns with current employment law.
A leave management system that handles unpaid leave as a distinct absence type, tracks the impact on holiday accrual and pension, and manages both statutory and discretionary requests keeps unpaid leave compliant and consistent.
Sources
Last updated: 26 July 2026. This article is general information, not legal advice. Unpaid leave rights depend on your contract and specific circumstances — check your terms and seek legal advice if needed.