Unpaid Leave

Unpaid Leave Tracker for UK Businesses

Track unpaid leave alongside annual leave, sick leave, and every other absence type. Keep payroll accurate, see all absences on one team calendar, and maintain complete records.

Custom Leave Types

Track unpaid leave alongside paid leave

Create a custom “Unpaid Leave” type in TimeTally so unpaid absences are recorded separately from annual leave and other paid time off. This gives your payroll team clear data on which days to deduct, and gives managers accurate records for leave management.

  • Separate from paid leave

    Unpaid leave appears in its own colour on the calendar — never mixed up with paid annual leave

  • Multiple unpaid types

    Create separate types for unpaid parental leave, sabbaticals, career breaks, or general unpaid leave

  • Approval workflow

    Unpaid leave requests go through the same approval process as all other leave types

Create a custom unpaid leave type in TimeTally

Keep payroll accurate

Unpaid leave directly affects pay. Tracking it separately and accurately prevents payroll errors and employee disputes.

Clear payroll deductions

When unpaid leave is tracked separately, your payroll team knows exactly which days to deduct. No more guesswork or manual cross-referencing with managers.

Xero & QuickBooks sync

Export unpaid leave data directly to your payroll software. TimeTally integrates with Xero and QuickBooks, or you can export via CSV for any other payroll system.

Avoid disputes

With a clear record of which days were unpaid, there are no surprises on pay day. Both employer and employee can see the data that payroll is based on.

Payroll integrations: TimeTally integrates with Xero and QuickBooks to streamline payroll processing. Learn more about our payroll integrations or explore our leave management software for the full picture.

Team Calendar

See all leave types together

Unpaid leave, paid annual leave, sick leave, TOIL, compassionate leave — all visible on one team calendar with distinct colours. Managers get a complete view of who is off and why, regardless of whether the absence is paid or unpaid.

Team calendar showing unpaid leave alongside paid leave and other absence types

Common unpaid leave tracking problems

Without proper tracking, unpaid leave causes payroll headaches and confusion.

1

Mixed up with paid leave

Unpaid days are recorded as annual leave or not recorded at all. Payroll processes them as paid, costing the business money and creating corrections later.

2

Payroll deductions missed

Nobody tells payroll about the unpaid days. The employee receives full pay and the correction has to be made the following month — frustrating for everyone.

3

No formal record

Unpaid leave is agreed verbally but never logged. When questions arise about pay or entitlement, there is no evidence of what was agreed.

4

Team doesn't know who's off

Unpaid leave is not visible on any shared calendar. Colleagues are surprised when someone does not show up, and cover is not arranged in advance.

Every absence type. One tracker.

🏖️

Annual Leave

Track statutory and contractual holiday entitlement, carry-over, and pro-rata calculations.

🤒

Sick Leave

Record self-certified and doctor-certified sick leave. Track Bradford Factor scores automatically.

TOIL

Accrue, request, and track time off in lieu from overtime and on-call callouts.

❤️

Compassionate Leave

Create custom leave types for compassionate, bereavement, and other special circumstances.

👶

Parental Leave

Track maternity, paternity, and shared parental leave alongside regular annual leave.

Custom Leave

Any custom leave type you need — configured with its own rules, entitlement, and approval flow.

Simple, Transparent Pricing

One price. Every feature. No surprises.

£2/employee/month

Billed monthly. Cancel anytime.

Unpaid leave tracking — via custom leave types
Team calendar view — see who's off at a glance
All leave types included — annual, sick, TOIL, unpaid, and more
Timesheet tracking included — no extra charge

Everything you need to know about unpaid leave

UK unpaid leave law is more detailed than most managers realise. Here's what the rules actually say.

Parental Leave: 18 Weeks Unpaid

Employees with at least one year's service can take up to 18 weeks of unpaid parental leave per child, up to the child's 18th birthday. A maximum of 4 weeks can be taken per year unless the employer agrees to more.

Emergency Leave for Dependants

Employees have a statutory right to unpaid time off to deal with an emergency involving a dependant — such as sudden illness, a bereavement, or unexpected childcare failure. There is no defined limit, though 1 to 2 days is typical.

Unpaid Sabbaticals and Career Breaks

Unpaid sabbaticals are purely contractual — there is no statutory right to one. Employers can offer sabbaticals of weeks, months, or longer. Terms must be agreed in writing, including what happens to the employee's role on return.

Garden Leave vs Unpaid Leave

Garden leave and unpaid leave are frequently confused. Garden leave is paid — the employee remains on the payroll but does not work. Unpaid leave means no salary is paid. The distinction has significant legal and financial implications.

Continuity of Employment During Unpaid Leave

Most unpaid leave arrangements preserve continuity of employment for statutory rights purposes. For contractual sabbaticals, continuity should be explicitly confirmed in writing to protect the employee's access to statutory entitlements.

Benefits and Pension During Unpaid Leave

Pension auto-enrolment contributions typically pause during unpaid leave unless the employee opts to continue. Health insurance and other contractual benefits should be addressed explicitly in the unpaid leave agreement.

Annual Leave Accrual During Unpaid Leave

Statutory annual leave continues to accrue during statutory unpaid leave, such as parental leave. For contractual sabbaticals, whether holiday accrues depends on what the written agreement says — it should be stated explicitly.

Written Agreements for Unpaid Leave

All unpaid leave arrangements should be documented in writing. The agreement should cover start and end dates, the confirmed return date, continuity of employment, benefits during the period, and whether the employee's role is guaranteed on return.

Swipe to see more →

Frequently Asked Questions

How does TimeTally track unpaid leave?

TimeTally lets you create a custom 'Unpaid Leave' type with its own colour and settings. When an employee takes unpaid leave, it is recorded against this type and appears on the team calendar alongside paid annual leave, sick leave, and other absence types. You can export the data via CSV or sync with Xero or QuickBooks for payroll processing.

Is there a right to unpaid leave in the UK?

There is no general statutory right to unpaid leave in the UK, though there are specific exceptions. Parents of children under 18 have the right to 18 weeks of unpaid parental leave per child. Employees also have the right to reasonable unpaid time off for dependant emergencies. Beyond these, unpaid leave is at the employer's discretion.

How does unpaid leave affect payroll?

Unpaid leave days must be deducted from the employee's pay. Tracking unpaid leave separately from paid leave ensures your payroll team knows exactly which days to deduct. TimeTally's CSV export and Xero/QuickBooks integrations make it straightforward to pass this data to payroll.

Can I use unpaid leave for sabbaticals?

Yes. You can create a custom leave type called 'Sabbatical' or 'Career Break' in TimeTally and record extended unpaid absences against it. This keeps sabbaticals separate from short-term unpaid leave for clearer reporting and team planning.

Does unpaid leave affect annual leave entitlement?

It depends on the type of unpaid leave. Statutory unpaid parental leave does not affect annual leave accrual. For discretionary unpaid leave, employers can choose whether to continue accruing annual leave during the absence — your company policy should make this clear. TimeTally tracks both types separately so you have accurate records for entitlement calculations.

Track every type of leave in one place.

Try TimeTally free for 14 days. Track unpaid leave, annual leave, and all absence types alongside your time tracking.

No credit card required · Free 14-day trial · Cancel anytime