HR glossary · Leave, health and benefits

Leave of absence

A leave of absence is an approved period off work, either a statutory leave the law requires or a leave you agree to, after which the employee returns.

Also called: LOA, unpaid leave, personal leave, approved absence

What leave of absence means

A leave of absence is an agreed period when an employee is away from work but still employed. When it ends, the employee is expected to come back. It is different from a vacation, which is earned paid time off, and from a layoff, where you have no work for the person.

There are two kinds. A statutory leave is one the law gives the employee, such as maternity, parental, sick, bereavement or compassionate care leave. You must grant it if the employee qualifies. A discretionary leave is one you agree to even though the law does not require it, such as three months off to travel, care for a relative beyond the statutory limit, or study.

Both kinds need clear dates and clear terms. Most disputes about leaves come from vague arrangements: no return date, no agreement on benefits, no plan for what happens if the employee wants more time.

How it works

For a statutory leave, follow your province's rules on eligibility, notice and length, and do not add conditions the law does not allow. For a discretionary leave, you set the terms, but put them in writing and apply your policy the same way to everyone so the decision cannot look unfair or discriminatory.

A good leave letter covers the start date, the expected return date, whether the leave is paid or unpaid, what happens to benefits and who pays premiums, whether the employee can work elsewhere, how they will keep in touch, and how much notice they must give to return early or ask for an extension.

Remember the payroll side. If an employee has, or expects to have, 7 consecutive days with no work and no insurable earnings, you must issue a Record of Employment, even if they are coming back. For electronic ROEs on a weekly, biweekly or semi-monthly pay cycle, the deadline is 5 calendar days after the end of the pay period in which the absence starts.

Plan the return. Put the return date in your calendar, contact the employee a few weeks before it, and confirm the schedule. If someone does not return on the agreed date, reach out and ask what is happening before you draw any conclusion. An employee who is ill may be protected by employment standards or human rights law.

Is it the same in every province?

The idea of a leave of absence is the same across Canada. What differs is the list of statutory leaves, their length and who qualifies, which each province and territory sets in its employment standards law and which the Canada Labour Code sets for federally regulated employers. The Record of Employment rules are federal and apply everywhere.

Example: A three-month trip from a Fredericton bakery

Maya runs a 9-person bakery in Fredericton. Her pastry chef Louis, who has worked there for six years, asks for three months of unpaid leave from January to visit family overseas. No statutory leave covers this, so it is up to Maya.

She agrees and writes a short letter: the leave runs from 4 January to 2 April 2027, it is unpaid, Louis will pay his share of the health plan premiums by e-transfer each month, and he will confirm his return by 15 March. Maya issues a Record of Employment after his last pay period and adds 2 April to her calendar.

Hollis drafts the letter

Hollis, part of the Staffkin HR Suite, drafts province-specific leave approval and return-to-work letters for you to review; it never sends on its own.

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Questions about leave of absence

Do I have to approve a leave of absence?

You must approve a statutory leave if the employee qualifies. A discretionary leave is your decision, but apply your policy consistently and avoid reasons tied to a protected ground under human rights law.

Do I need to issue an ROE for a leave of absence?

Yes, if the employee has, or expects to have, 7 consecutive days with no work and no insurable earnings, even if they are coming back.

What should a leave of absence letter include?

Start and return dates, whether it is paid, what happens to benefits, how the employee keeps in touch, and the notice needed to return early or extend.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.