Sabbaticals are periods of paid or unpaid time away from work which are agreed between the employer and employee. Sabbaticals have grown in popularity, especially since the pandemic, related to increasing employee preferences for flexible working. While sabbaticals used to be for employees to take a break from work, they are now recognised as a recruitment and retention tool. Therefore, it is worthwhile having a sabbatical policy in place to deal with different types of requests fairly and consistently.
Key considerations for employers offering sabbaticals are:
Sabbaticals can benefit both employees and employers. According to research, employees take sabbaticals for three broad reasons:
These three reasons are not necessary mutually exclusive, and employees may, for example, be able to undertake both recovery and practice during a sabbatical. This underlines the importance of being clear about the purpose of the sabbatical. For longer-term paid sabbaticals, employers are likely to want an agreed plan in place which outlines what the employee will achieve during the sabbatical period, whereas this is likely to be unnecessary for shorter and unpaid sabbaticals.
Sabbaticals can also have significant benefits for employers including strengthening employee productivity, fostering growth, reducing turnover intentions and supporting greater job satisfaction. As demands for sabbaticals increase, they can be used to attract talented employees to the organisation. Employers affected by economic downturn can also offer unpaid sabbaticals as a tool to retain employees instead of making them redundant.
Differences between sabbaticals, unpaid leave and career breaksSabbaticals are sometimes referred to interchangeably with the terms career breaks or unpaid leave. However, it is important to note that not all sabbaticals are unpaid. Employers can use their discretion to introduce paid sabbaticals.
Unpaid leave is an umbrella term covering all types of leave without pay. It generally applies to shorter periods of time than career breaks and therefore the contract usually stays in place during these types of leave. This includes both authorised and unauthorised unpaid leave such as time off for an emergency involving a dependant, unpaid parental leave, bereavement leave and time off work for certain public duties. The CIPD has separate guidance for these types of leave.
Career breaks describe longer periods of unpaid leave, during which the employment contract is usually discontinued but the employer may agree that the employee can return within a specified time period.
Sabbaticals are often for shorter periods and, unlike career breaks, the contract normally continues. They may be unpaid, but can also be fully or partly paid by agreeing a percentage of normal salary. It is quite typical for an employee to be required to complete a certain length of service before they are entitled to take a sabbatical, especially when the sabbatical is paid. For example, an employer may have a policy of allowing a six-month sabbatical on 30% of pay to reward long service. However, employers should be careful to ensure that any service requirements are reasonable and fair. After completing a sabbatical an employee normally return to the same job or a similar one.
There is no statutory right to take a career break or sabbatical, but many larger employers and those in the public sector (for example, education) may offer such breaks, at their discretion.
Examples of different approaches to sabbaticals include:
There are no specific employment law rules governing sabbaticals in the UK, although the right to request flexible working may be used by employees to seek a variety of working arrangements. In some other countries there are specific regulations, for example, guaranteeing sabbaticals after a number of years’ service. Due to the lack of regulation in the UK, the legal position is mainly covered by the law of contract which in turn relies on what is agreed between an employer and employee.
From 1 April 2024, employees in England, Wales and Scotland will have the right to request flexible working arrangements from the first day of employment. Prior to 1 April 2024, a request could only be made after working for an employer for at least 26 weeks.
Although employees can use the right to request flexible working to seek a sabbatical, having a specific sabbatical policy in place may help make the process clearer and fairer.
The Acas Code of Practice on flexible working requests provides a good basis for considering sabbatical requests. For further information see our resources on flexible working. Employers can refuse flexible arrangements for a number of specified business reasons. However, employers should think creatively to gain the full benefits of offering sabbaticals. For example, it may be possible to delay the start of a sabbatical rather than refuse it altogether.
Status of employment contracts during sabbaticalsA key legal issue for HR to address is what happens to the employment contract (including employee benefits and continuity of service) during the sabbatical.
If the sabbatical is paid, usually the contract remains in force, which means that the employee's continuity of service is preserved.
During unpaid sabbatical leave the contract of employment often does not remain in force. However, the employee's continuity of service may be preserved provided the employer and employee agree that this is the case.
There are some benefits to the employer if the contract continues, for example the employee retains a duty of good faith and should not reveal confidential information. The employee should also not, without agreement, work for another employer during their sabbatical. Where the employment contract continues, the ongoing contractual benefits will be negotiated between the parties. Some terms, for example payment of salary, benefits and overtime will be suspended or reduced.
In the absence of specific legislation covering sabbaticals, HR has more freedom to set sabbatical policy and the terms of sabbatical agreements, although they must ensure they adhere to other relevant legislation such as law on contracts and equality.
Some of the wider matters to be addressed include:
Criteria
Sabbaticals work best when employees have a say in their purpose. However, it is likely that you will want to put some criteria in place to determine whether a sabbatical should be awarded, especially if it is to be paid. Implementing an application process can ensure clarity and fairness. Criteria set out in flexible working legislation can guide employer decisions on assessing sabbatical applications.
It is common in the education sector for paid sabbaticals (of approximately three or more months) to be awarded based on the employee providing realistic objectives to be met during the sabbatical. However, the requirement to spend at least part of the sabbatical on work-related activity is normally proportionate to the length of the sabbatical and whether it is paid. For example, this criteria doesn’t normally apply to short-term and unpaid sabbaticals. In the case of longer term paid sabbaticals, employers may wish to agree a plan of activity with the employee as a condition of awarding the sabbatical.
Staffing
Adequate cover for the sabbatical period needs to be arranged. Although employers can reserve the right to recall employees on sabbatical if their situation changes this should only be used when absolutely necessary to avoid dissatisfaction and potentially losing the benefits of the employee undertaking a sabbatical.
HR should also carefully consider the content of sabbatical agreements and policies.
Content of sabbatical agreements and policiesAs well as a specific sabbatical agreement with the employee, employers should have a written sabbatical policy. HR can decide not to have an overall policy and simply rely on the more ad hoc system of individual agreements, although this is usually inadvisable. A written policy prevents misunderstandings and can help avoid discrimination and other claims later on by clearly outlining the organisation's approach to sabbaticals and how criteria is applied. Part-time employees must be given the same consideration as their full-time counterparts and any selection criteria used should not create an imbalance for those with other protected characteristics such as age and disability.
Regardless of whether there is an overall policy, employers should always discuss and set out in writing the terms and conditions that will apply for each employee during the sabbatical. It should be explicitly outlined whether the employee can expect to return to their original job at the end of the sabbatical. For short-term sabbaticals this is normally expected, but it may not be the case for extended periods of sabbatical, especially where there is no continuity of service.
HR should address the following either in the individual agreement or the policy or in both.
AgreementsContinuity
The employee’s continuity of service can be preserved so that they remain an employee. Continuity governs matters such as whether the employee would qualify to bring an unfair dismissal claim. If the sabbatical is unpaid, the contract may be terminated with an offer made to re-employ after the sabbatical.
Return
The employer must decide upon the arrangements and date for the employee’s return to the workplace. HR must address the extent to which any right to return is guaranteed, what kind of job role will be offered and on what terms. The return to work date should be agreed up front. Options when an employee returns from sabbatical include:
You should address what happens if there is no longer a role for the employee, as well as whether the sabbatical can be prolonged or shortened by either party and on what notice. Obligations to return to work for short periods for training or keeping in touch may also be included.
You should also make plans to welcome the employee back into the organisation following their sabbatical, including providing time for them to meet new colleagues and familiarise themselves with any new role or new practices.
Being clear about expectations whilst also providing some flexibility where possible is advisable given that sabbaticals can result in transformative personal and professional change.
Limitations
Agreements should confirm any limitation on working for competitors during sabbatical. Whether the employee remains subject to confidentiality and good faith obligations and any restrictive covenants should be confirmed.
Annual Leave
Paid annual leave will accrue if the contract continues during the sabbatical. To accommodate holiday accrual, employees can take their holidays at the beginning or end of the sabbatical. An unpaid sabbatical agreement where the contract continues should still include payment for the statutory minimum leave period.
Pay
The employer needs to determine whether sabbaticals will be unpaid, paid in full or a percentage of salary and apply these conditions consistently. Normally, the longer a paid sabbatical is, the higher the expectation that it will be spent on work-related activities. Some short-term sabbaticals of four to six weeks are paid with no conditions on how the sabbatical should be spent.
Claw back provisions can require the employee to repay their salary and other monetary benefits received during their sabbatical if they do not return or do not remain at the organisation after their return for a specified period. For unpaid sabbaticals the applicable rate of pay on return will need to be agreed.
Benefits
Sabbatical agreements may confirm suspension of, or contractual provision for, pensions and other benefits, including car allowances or private medical insurance. Policies should specify if sabbatical leave counts towards qualification for service-related benefits.
Annual pay increments or reviews
Staff on sabbatical may not receive their annual increment. However, issues of indirect sex discrimination may arise, as women are more likely to take a sabbatical. There could also be a breach of the implied contractual term of trust and confidence, so providing for a review while the employee is absent or on their return is a safer course of action in a similar way to those on maternity leave. For example, HR could decide that increments will accrue only for sabbaticals of up to six months.
Bonuses and commission
Bonuses which retrospectively cover periods of performance at work must still be payable. Depending on the sabbatical length it may be appropriate to pro-rata payments and performance targets. Discretionary bonuses may be payable during sabbaticals depending on how the scheme is worded and operates in practice. Some payments can be refused for employees on sabbatical if the bonus or commission is payable to employees in active service. Employers should not automatically ignore employees on sabbatical just because the payment is due during the sabbatical.
Promotion
If employees on sabbatical are ignored for promotion during their absence this could amount to indirect discrimination so HR should ensure that absent employees are also considered in a round of promotions.
Further sabbaticals
The policy should confirm whether employees can have more than one period of sabbatical leave and state that sabbaticals are at the employer’s discretion, not an automatic entitlement. It should be explained that continuance of a sabbatical or agreeing a further one is dependent on the employer's operational requirements at the relevant time.
Maternity, paternity and adoption pay
Parents on sabbatical may not have entitlement to all the different forms of parental pay if the contract is suspended, for example there may be no entitlement to statutory maternity pay without employee status although maternity allowance may be payable. If the contract continues, the eligibility requirements for these statutory rights may be met.
Property
Company property may need to be returned or retained for the duration of the sabbatical, such as laptops, mobiles, cars or security passes.
Common issuesCan employers refuse to extend a sabbatical?
Provided the sabbatical return date was clearly agreed, employers can refuse an employee’s extension request. If the employee’s request is being made under the flexible working legislation, employers should follow relevant guidance (like the Acas Code of Practice on flexible working requests). Reasonable consideration should be given to the request and if there is a valid reason for it to be refused according to the legislation the employee should be informed of this.
What should employers do if an employee decides not to return from their sabbatical?
If employees fail to return, the employer can simply accept this or treat it as an unauthorised absence in line with the disciplinary policy. In practice, there is little employers can do to force a reluctant employee to return. Some sabbatical agreements and policies incorporate claw back provisions, making any payments during the sabbatical repayable if the employee doesn’t return. HR management systems may be able to generate automatic reports to show when employees are scheduled to return to prompt HR into contacting the employee to manage the return process.
Can an employee be made redundant whilst on sabbatical?
Employees on sabbatical who are still employed by the company can be included for selection for redundancy.
The terms of sabbatical agreements, and the wording of the sabbatical policy, are critical. If continuity of employment has ended, then the employee is no longer employed and will not be entitled to redundancy.
If employment continues during sabbatical, then the same redundancy risks and obligations apply as to the rest of the workforce. Redundancy payments should take into account continuity of employment during the sabbatical.
Most employees on sabbatical are likely to have worked for the employer for a minimum of two years so will be protected against unfair dismissal, for example if they are unfairly selected for redundancy. More information on managing the redundancy process can found in the relevant CIPD guidance.
Four key points for HR to remember on sabbatical policies and managing the processPut systems and records in place
HR may need to establish new systems and liaise with payroll to generate accurate data and keep the employee records active in the system. All arrangements, especially about continuity and return, should be recorded carefully and addressed in the documentation which will include:
Systems should address:
Promotion or pay reviews should be remembered for those on sabbatical. Use a system (like an HR portal) to make it easy to share sabbatical policy documents with employees, and to keep in touch with employees during their absence.
Have a well written policy and agreements
HR must think carefully about the terms on which sabbaticals are offered and ensure that these are clearly set out in writing to prevent later misunderstandings. Correctly drafted, these will help avoid discrimination and other claims. Even with a written policy, employers should always set out comprehensive terms and conditions that will apply for each employee, including written agreement to returning on the specified date.
Think creatively
Having a clear sabbatical policy and application process can support its use as a recruitment and retention tool and help ensure that decisions around awarding sabbaticals are fair and consistent.
Keep in touch
HR has an important role regarding the requirements for staying in touch. The extent to which employees are required to keep in touch may depend on the purpose and length of the sabbatical. However, as a minimum it is suggested that a process to share information such as company updates and news should be agreed. The employee can also be encouraged to return to the workplace during sabbaticals for occasional team meetings as well as for training.
HR will need to initiate discussions about the return-to-work and reintegration into the workplace. These discussions need to take place before the employee returns and there will need to be catch up appointments afterwards, to check how the return is going. Training needs should also be discussed and agreed, especially for longer sabbaticals.
DISCLAIMER: The materials in this guidance are provided for general information purposes and do not constitute legal or other professional advice. While the information is considered to be true and correct at the date of publication, changes in circumstances may impact the accuracy and validity of the information. The CIPD is not responsible for any errors or omissions, or for any action or decision taken as a result of using the guidance. You should consult a professional adviser for legal or other advice where appropriate.