Clients taking periods of leave without pay

People may sometimes be in a situation where they take periods of leave without pay from their employment. To do this, employees' must have agreed with their employer to alter the conditions of their employment.

People who are on a period of unpaid leave are not considered to be employed and therefore if they meet all of the qualifications they can receive Jobseeker Support.

You need to consider the reason that a person is on a period of unpaid leave.

It is considered a good and sufficient reason to become unemployed if you are satisfied that an employee has agreed to take a period of leave without pay to protect their job in the future. This may be due to a downturn in the economy or because of an unexpected temporary closure at the premises (such as flood or fire).

You may consider imposing a voluntary unemployment stand-down if the person decided to take leave without pay without a good and sufficient reason (for example, if a person just decided they wanted to have a break from their job).

For more information see:

• Voluntary unemployment - good and sufficient reason

To receive Jobseeker Support, people on a period of unpaid leave must still meet their work obligations and be available for, and take reasonable steps to obtain suitable employment and accept any offer of suitable employment, whether full-time, part-time, temporary or seasonal employment.

A person who decides not to search for other work while on a period of unpaid leave would not be entitled to receive Jobseeker Support as they do not meet the job search requirements.

Note that if the person has an essential need during this time we could assist with a Special Needs Grant. Recoverable Assistance Payment may be appropriate as long as the client meets the annual income test.

For more information see:

• Work obligations
• Extra help Special Needs Grant
• Extra help Recoverable Assistance Programme