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Free letter template · Word

Leave Without Pay Approval

A leave without pay approval letter is issued by HR to confirm that an employee's request for unpaid leave has been sanctioned. It spells out the dates, how salary will be deducted, the position on benefits during the period and the conditions for rejoining.

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Preview of the letter

[Highlighted] = fill in
[Company Logo][Company Name]

APPROVAL OF LEAVE WITHOUT PAY

Ref. No.:
[Reference Number]
Date:
[Date]

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]

Subject: Sanction of Leave Without Pay from [DD/MM/YYYY] to [DD/MM/YYYY]

Dear [Employee Name],

With reference to your application dated [Date], the management has approved leave without pay (LWP) for [Number] days from [DD/MM/YYYY] to [DD/MM/YYYY], on the terms below.

1. Salary

No salary will be paid for the LWP days. The deduction will be calculated as [gross monthly salary ÷ number of days in the month × LWP days] and will be reflected in the salary for [Month(s), Year].

2. Benefits During LWP

BenefitPosition During LWP
Group medical insurance[Continues / Continues – premium of ₹Amount to be recovered]
Provident fund[No contribution for months with no wages paid]
Leave accrual[Does not accrue / Accrues as per policy]
Bonus / variable pay[Pro-rated as per policy]
Service continuity[As per applicable law and policy]

3. Return to Work

You are expected to report for duty on [DD/MM/YYYY]. Please confirm your rejoining date to [HR Name] at least [Number] days in advance. If you need any change, apply in writing before the LWP ends. Absence beyond the sanctioned period without approval will be dealt with as per the company leave policy, after giving you an opportunity to explain.

We hope this time helps you attend to your needs, and we look forward to your return.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]

Acknowledgement

I have read and accept the terms of this leave without pay.

[Employee Name]
Date: [Date]

What this template includes

  • Exact LWP period and total days
  • Salary deduction method and payroll months affected
  • Treatment of benefits: insurance, PF, leave accrual, bonus eligibility
  • Return-to-work date and process
  • Consequence of not rejoining, stated fairly
  • Acknowledgement by the employee

When to use it

  • After approving an employee's application for LWP
  • When long LWP needs a formal record for the personnel file
  • To set conditions such as a fixed return date or periodic updates
  • When benefits like insurance or accruals are affected and must be explained

How to customise this template

  1. 1Describe the salary deduction method used in your payroll
  2. 2Fill in the benefits table with what actually applies under your policies
  3. 3Add a premium-recovery clause if the employee must pay insurance premiums during LWP
  4. 4Get the employee's signed acknowledgement

HR tips

  • Be specific about benefits; vague letters cause disputes later
  • Record the effect of long LWP on continuous service only after checking the applicable law
  • Keep the tone supportive; LWP is usually requested for genuine hardship
  • Calendar a check-in before the return date

This template is a starting point only. Review it against applicable labour laws, the relevant state Shops & Establishments or Factories rules, the Labour Codes and their rules as notified, your standing orders and leave policy, and take legal advice where needed.

For HR & hiring managers

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Frequently asked questions

Is leave without pay counted as service?+

Treatment of LWP for continuous service, gratuity and leave accrual depends on the applicable law and policy. HR should check before stating it in the approval letter.

Are PF contributions made during leave without pay?+

PF contributions are linked to wages paid. If no wages are paid for a month, contributions are generally not made for that month. Confirm details with your payroll team.

Can LWP approval be revoked?+

The letter can set conditions. If business needs change, the employer should discuss with the employee rather than revoke unilaterally, and record any agreement.

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