LOSS OF PAY
Loss Of Pay
Loss of Pay (LOP), also known as Leave Without Pay (LWP), refers to the absence of pay for an employee who is not present at work due to reasons not covered by their paid leave balance.
Reasons for Loss of Pay
- When an employee takes leave beyond their available leave balance, the additional days are considered LOP.
- Some employers may offer unpaid leave options for specific reasons, such as personal emergencies or extended illness.
- Employees who participate in authorized strikes may not receive pay for those days.
- LOP can be a form of disciplinary action for misconduct or poor performance.
- If an employee is absent without a valid reason or prior approval, they may be subject to LOP.
Impact of LOP
- Financial hardships for employees and their families.
- Reduced benefits such as health insurance or retirement plans.
- Disciplinary action, including termination of employment.