Who this is for: HR professionals juggling compliance, startup founders managing small teams, CHROs overseeing talent strategy, and full-time tech employees wondering about their options.

Key Objectives: 

1. What Is a Leave of Absence?
2. Common Types of Leave of Absence
3. Paid vs. Unpaid Leave: What’s the Real Difference?
4. When Leave Is Legally Protected vs. Discretionary
5. What Do You Do When Someone Goes on Leave?
6. For Startups and Tech Teams: Leave Can Be a Stress Test
7. Bonus: Use This Leave of Absence Checklist
8. Talk to TCWGlobal
9. Frequently Asked Questions 

Why it matters: In today’s hybrid, high-pressure workplace, the ability to step away from work temporarily—without risking your job—can be just as critical as the ability to perform while present. And for companies? Handling leave correctly is not just about empathy—it’s about business continuity, retention, and legal protection.

What Is a Leave of Absence?

A leave of absence (LOA) is when an employee formally takes time away from work while keeping their job. It differs from PTO or vacation in that LOAs often cover extended periods, may be unpaid, and may or may not be legally protected.

In growing companies, especially in tech, leave management is rarely standardized. And that’s a risk. Without a defined process, you may accidentally violate labor laws, compromise benefits eligibility, or lose valued employees.

Why it matters: A leave of absence isn’t just a pause in work—it’s a test of how your company values its people during their most vulnerable moments.

Common Types of Leave of Absence

Here's a breakdown of key leave types—plus practical examples to help contextualize each.

1. Medical Leave

Typically used for recovery from surgery, managing chronic illness, or mental health treatment. May fall under FMLA, ADA, or local equivalents.

Context: A software engineer needs 6 weeks off for mental health reasons. As the employer, you're legally obligated to preserve their job if they meet eligibility under FMLA. You’ll also need to plan for resourcing during their absence.

2. Parental Leave

Time to bond with a newborn or adopted child. Mandated in some jurisdictions (e.g., California, New York, UK, Canada), but not all.

Global note: If you're managing a distributed workforce, leave policies can differ drastically between regions. An employer of record (EOR) like TCWGlobal ensures compliance across countries.

3. Personal Leave

Used for anything from attending grad school to relocating a family member. Usually unpaid and subject to approval.

Startup insight: Granting personal leave can help retain top talent—if paired with flexible coverage solutions like a contingent workforce strategy.

4. Bereavement Leave

Time off following a loved one’s death. Rarely mandated by law, but widely adopted by employers.

Best practice: Offer at least 3–5 days, and extend for immediate family. Grief support shows long-term investment in employee wellbeing.

5. Military Leave

Legally protected time off for reservists and active-duty military. Covered by USERRA in the U.S.

Compliance tip: You must reinstate the employee in the same or a similar role—regardless of how long they were gone.

6. Jury Duty or Civic Leave

Employees are entitled to serve without penalty. Depending on the state, they may be entitled to pay.

Paid vs. Unpaid Leave: What’s the Real Difference?

Not all leaves are created equal. Here’s a snapshot:

Takeaway: Paid or unpaid, all leaves impact workforce planning. Anticipating coverage gaps with flexible staffing options is essential.

When Leave Is Legally Protected vs. Discretionary

Understanding the difference between protected and non-protected leave is non-negotiable:

Context for CHROs: Inconsistent application of policies—especially for personal or discretionary leave—can expose your organization to claims of favoritism or bias.

What Do You Do When Someone Goes on Leave?

You’ve granted the leave. Now what?

Here’s how top-performing HR teams ensure business continuity:

• Cross-train team members in key functions before leave starts

• Bring in contingent workers for short-term project support

• Track full-time hours to avoid benefits disruption

• Use an EOR to manage international employee compliance during leave

• Set a re-onboarding plan to help the employee reintegrate smoothly

Real-world tip: TCWGlobal’s staffing agency and EOR services help companies scale their response by filling skill gaps, maintaining compliance, and keeping business flowing.

For Startups and Tech Teams: Leave Can Be a Stress Test

Fast-growth companies are uniquely vulnerable to the disruption of unexpected leave. Without a scalable process, even one absence can:

• Delay product launches

• Increase stress on remaining staff

• Spark burnout or turnover

• Expose gaps in your HR processes

Pro tip: Use leaves as a signal—not a setback. Temporary workers or contractors can be sourced through a staffing agency or payrolling solution within days.

Use This Leave of Absence Checklist

Here’s a simple tool your team can use:

• Confirm if the leave qualifies for protection (FMLA, ADA, etc.)
• Outline if leave is paid or unpaid
• Draft a coverage plan (internal redistribution or temporary staffing)
• Notify payroll and benefits admin teams
• Communicate expectations and next steps with the employee
• Set a re-onboarding strategy
• Review the outcome and improve the process

Talk to TCWGlobal

Don’t risk legal missteps, productivity drops, or employee dissatisfaction. TCWGlobal helps employers of all sizes manage leaves of absence with:

• Global EOR and payrolling support

• Access to vetted contingent workforce talent pools

• HR and compliance expertise

• Custom staffing agency services for coverage and transition

Book a Call with TCWGlobal to take the stress out of leave management.

Frequently Asked Questions

1. Can a leave of absence change someone’s full-time status?

Yes. If the employee drops below required hours, it may affect benefits—unless the leave is legally protected.

2. Are we legally required to approve all leave requests?

Only certain types—like FMLA, military, or jury duty—must be approved. Others depend on your internal policy.

3. What’s the difference between leave and paid time off?

PTO is typically short and scheduled (like vacations). LOA is longer, may be unpaid, and often tied to legal obligations.

4. What if I can’t afford a new hire to cover the leave?

That’s where contingent staffing or payrolling through TCWGlobal becomes your secret weapon. You can flex your workforce without adding headcount.

Need Help?

Need help managing your contingent workforce? Contact TCWGlobal today to learn more.

Whether you need expertise in Employer of Record (EOR) services, Managed Service Provider (MSP) solutions, or Vendor Management Systems (VMS), our team is equipped to support your business needs. We specialize in addressing worker misclassification, offering comprehensive payroll solutions, and managing global payroll intricacies. 

From remote workforce management to workforce compliance, and from international hiring to employee benefits administration, TCWGlobal has the experience and resources to streamline your HR functions. Our services also include HR outsourcing, talent acquisition, freelancer management, and contractor compliance, ensuring seamless cross-border employment and adherence to labor laws. 

We help you navigate employment contracts, tax compliance, workforce flexibility, and risk mitigation, all tailored to your unique business requirements. Contact us today at tcwglobal.com or email us at hello@tcwglobal.com to discover how we can help your organization thrive in today's dynamic work environment. Let TCWGlobal assist with all your payrolling needs!