Different Types of Leave: Why HR Teams Need a Clear Map
All employees will take time off work at some stage. The different types of leave on offer will determine how much you will pay employees, what they are legally entitled to and how supported they feel while they aren’t present. Each type of leave will have different rules around payment, notice periods, documentation and rights.
However, having all these different rules in a handbook, excel and in a few managers' heads will cause issues with balancing, inconsistencies during approval and payroll errors (e.g not paying half sick leave or missing entitlements). By treating leave as governance, this guide will take you from the basics to knowing all 15 types of leave, country rules, benefits and drawbacks and how to create your own policy.
What Is Leave, and How Does a Leave of Absence Differ?
Leave is any authorised time off. There are a few terms that will come up regularly:
- Statutory leave – This is leave that is required by law to be provided e.g maternity leave or public holidays.
- Contractual/Policy leave – This is leave that your employer provides e.g sabbaticals or extra study leave.
- Planned leave – Leave that is known in advance e.g annual leave.
- Unplanned leave – Leave that is sudden e.g sick day leave.
A leave of absence is typically time taken off for specific reasons. It can be for medical, family or personal reasons and will often be longer. As it may be unpaid, require approval and documentation, it can also have legal protection. Many HR teams will consider anything longer than a few weeks as a leave of absence and will have a specific process in place.
Paid and Unpaid Leave: The Basic Split
Most leave will fall into one of the following categories:
- Paid – The employee will receive full pay e.g annual leave.
- Unpaid – The employee’s role will still be active but they will not be paid e.g most prolonged personal leave.
- Part Paid – Payment will be reduced over time e.g full pay for the first few days and then half pay.
The payment status of leave will affect how you accrue liability, how it will be treated in end of service calculations and how it will affect salary related benefits. In many countries, the type of leave that will be paid will be determined by law. The rest of the leave will be dictated by company policy. The common mistake is to assume part paid entitlements are fully paid or unpaid.
15 Types of Leave in a Company, Explained
Rest and time-off leave
1. Annual leave
Paid leave to take a break. Earned based on length of service. In the UAE this equates to 30 days per annum however pro rata from 6 months. HR Tip – Be aware of carry forward and payment rules.
2. Public Holidays
A national or religious holiday where no work is to be done. Usually paid. In Singapore this is 11 days. HR Tip – Any work carried out on a public holiday should be paid or a day in lieu.
3. Time off in lieu
Extra time off in lieu of overtime. A reward for extra hours worked. HR Tip – Set an expiry period to avoid balances building up.
4. Study leave
Time off to sit exams, attend courses or training. In the UAE employees with 2 years service will receive 10 days paid study leave per annum to sit exams at recognised institutions. In other countries it will typically be at the employer’s discretion.
Health and family leave
5. Sick day leave
Time off due to illness or injury. Usually supported with a medical certificate. In the UAE employees will receive up to 90 days sick leave per annum (15 days full pay, 30 days half pay and 45 days unpaid) after their probation period. In Singapore employees can take 14 days outpatient sick leave (paid). Up to 60 days can be taken in total. In Malaysia employees can take between 14-22 days depending on their length of service. Up to 60 days can be taken in total.
6. Maternity leave
Time off around giving birth or adoption. This can vary significantly. In the UAE employees will receive 60 days (45 days full pay, 15 days half pay). In Malaysia 98 days. In Singapore 16 weeks for Singapore citizen children.
7. Paternity leave
Time off for fathers. In the UAE employees will receive 5 working days within 6 months of birth. In Malaysia 7 days. In Singapore 4 weeks government paid leave.
8. Parental leave
Shared or additional leave that can be taken by either parent to look after their child. In Singapore there is a Shared Parental Leave pot of 10 weeks. By default 5 weeks for each parent. This means 30 weeks of paid parental leave per family when combined with maternity and paternity leave.
9. Medical/Disability leave of absence
Longer leave for serious health issues. Once statutory sick leave has been exhausted this will typically be at the employer’s discretion so make sure this is documented.
Life-event and civic leave
10. Compassionate leave
Short time off for a close family member passing away. Often referred to as bereavement leave. In the UAE employees will receive 5 days for their spouse and 3 days for parent/child/sibling/grandparent/grandchild. This can also be taken to look after a seriously ill relative.
11. Religious leave
Time off to practise their faith. In the UAE employees can take up to 30 days unpaid leave for Hajj.
12. Civic duty
Time off for jury service or voting. This will depend on local law.
13. Military leave
Protected time off for national service/reserve training. In the UAE employees will receive paid leave if they are called up for mandatory national service.
Career and employment leave
14. Sabbatical leave
Extended leave for a few weeks to 1 year. Can be paid or unpaid. Usually offered after a long period of service. Be sure to define who qualifies, how long and if it is paid.
15. Garden leave
Paid leave after resignation/termination. Employees cannot work during this time to protect confidential information and client relationships. Employees will remain employed and on their salary. The amount of time will be defined in the contract.
Pros and Cons of Offering Many Types of Leave
Benefits
- Retention & Engagement – Employees who are supported during illness, birth and loss are likely to stay with the company.
- Fewer disputes – With clear rules around payment and approval there will be fewer disputes.
- Planned – Employees will plan their time off with the correct options available.
- Improved employer brand – Offering fair leave will help with recruitment. Parental and compassionate leave in particular.
Drawbacks
- Cost – Paid leave and covering whilst they are away will increase payroll and overtime costs.
- Administration – Different rules around each type of leave, balances, notice periods and payments.
- Compliance – Rules will vary by country and site. Mistakes will cost more than the leave itself.
- Inconsistencies – If two managers interpret the same policy differently there could be complaints around fairness.
Most of these are administration issues. These can be reduced by having clear rules in place and automated tracking.
Building a Leave Policy That Holds Up
Having a leave policy will help you to create clear rules around the different types of leave. Follow the below steps:
- List the different types of leave you offer and if it is statutory or discretionary.
- Who qualifies – Probation, minimum length of service, role etc.
- Payment – Full, partial or unpaid.
- Notice & Documentation – Medical cert, planned notice.
- Balances – Accruals, carry forward, expiry & encashment.
- Who approves & escalation if they refuse.
- Review annually as statutory leave entitlements can change. For example in Singapore shared parental leave increased from 6-10 weeks in April 2026.
Strict – Easier to manage and justify however can feel very strict.
Flexible – Improves morale and retention however will need good tracking in place.
Most mature teams will have a strict statutory minimum but allow managers some flexibility.
Leave Balances and the Financial Side
Leave can also be a financial consideration. In many countries annual leave will be a liability if not taken. Accruals should be included in your forecasting. Part paid leave will mean adjustments to payroll. For example half pay sick leave. These can be easily missed when done manually. Long leave can also create hidden costs.
To keep this under control:
- Keep track of balances monthly.
- Review teams with high leave to identify any trends.
- Ensure your leave data is aligned with payroll. Deductions & payments will be from one source.
How a Leave Management System Removes the Guesswork
Keeping track of multiple leave types in excel can cause incorrect leave balances, missed rules and slow approvals. Using a leave management system will keep all leave types, rules & balances in one place. It will also integrate with attendance & payroll. Approved leave will be passed through to salary calculations.
Automate:
- Accruals & Balances – Updated based on length of service, entitlement & country rules.
- Approval – Passed to the correct manager. Reminders & escalation.
- Partial payments – Partial payments such as full, half & unpaid sick leave will be applied automatically.
- Self service – Employees can view their balances & apply for leave on any device. This will reduce regular HR queries.
- Audit Trail – All requests, approvals & changes to balances will be time stamped.
- Identify trends – Automation can identify regular short leave or gaps in cover.
Voyon Folks HRMS allows HR teams to set up statutory & custom leave types by country. Accruals & approvals will be applied automatically. Attendance & payroll will be integrated. This means companies in the UAE, Gulf & Southeast Asia will have one system. Find out more at www.voyonfolks.com.
Benefits – Reduce payroll errors, quicker approvals, consistent application of rules & audit ready.
Drawbacks – Subscription cost, data migration & some change management. However this can be managed with a clear rollout plan and phased go live.
Conclusion
Leave is an infrastructure for your workforce. Knowing the different types of leave, if they are paid, partially paid or unpaid and what the rules are in each country will give you a solid foundation to make fair & just decisions. The risk is rarely in the leave policy itself but in the difference between the policy and what is being done in payroll & tracking.
As an HR leader you need to decide if you want to offer multiple types of leave. Having clear rules in place, applying them consistently and making them visible to finance, managers & employees. Start by mapping out all the leave types you currently offer. Identify which are statutory. Ensure the payment rules are correct. Review annually to ensure they align with the law. Once you have headcount or multiple countries move away from using excel. Having a clear policy and reliable system will protect the employee needing time off and the business needing to cover.
Frequently Asked Questions
1. What are the different types of leave in a company?
Common types of leave include annual leave, sick day leave, maternity/paternity/parental leave, compassionate leave, public holidays, study leave, sabbatical leave, time off in lieu, civic duty, military leave & garden leave. Depending on the country some will be mandatory. The rest will be set by company policy.
2. What is the difference between paid and unpaid leave?
Paid leave means the employee will receive their full salary whilst they are on leave. Unpaid means the role will remain active but they won’t be paid. Some leave will be partially paid. In the UAE sick leave will be paid in tranches.
3. What is a leave of absence?
A leave of absence is longer authorised time off. It can be paid or unpaid. It often requires documentation & approval. In many cases it is legally protected. It is different to regular paid leave as it can be for specific reasons and longer.
4. Is compassionate leave the same as bereavement leave?
These terms are often used interchangeably. They both give short time off after a family member has died. Compassionate leave can be more general and can be taken to look after a seriously ill relative. Always check your policy or local law to understand how they are defined. The number of days may vary.
5. How many days sick leave are employees entitled to?
This depends on the country. In the UAE employees can take up to 90 days sick leave per annum. This is paid in tranches after their probation period. In Singapore employees can take 14 days outpatient sick leave (paid). Up to 60 days can be taken. In Malaysia employees can take between 14-22 days depending on their length of service. Up to 60 days can be taken. A medical certificate is usually required.
6. Why should companies use a leave management system?
It will keep track of leave balances, apply the rules for each country and automatically pass approved leave through to payroll. This will reduce errors & speed up approvals. It will also provide an audit trail. Employees can self serve reducing the time HR spend on regular queries.
About the Author
HR Technology & Workforce Operations Specialist. With experience advising businesses in the UAE, Gulf & Southeast Asia on implementing HRMS, designing leave policies & payroll compliance.
