Administrative leave: Overview, definition, and example
What is administrative leave?
Administrative leave is a temporary period of absence from work during which an employee is not required to perform their regular job duties but still continues to receive their regular salary and benefits. Administrative leave is often used by employers in situations where an employee’s presence is not required, or when further investigation is needed, for example, in cases of alleged misconduct, workplace investigations, or organizational changes. It is generally not a form of disciplinary action, but rather a neutral step to allow time for resolution or review.
For example, an employee may be placed on administrative leave during an internal investigation into a complaint or to allow the employee to deal with personal matters without affecting their job.
Why is administrative leave important?
Administrative leave is important because it allows businesses to manage situations where an employee needs to be temporarily removed from the workplace for reasons such as conducting an investigation, reassessing job roles, or addressing personal or health issues. It helps ensure that the workplace remains neutral and productive while also protecting the rights and benefits of the employee.
For SMBs, understanding when and how to use administrative leave is key to maintaining a fair and effective work environment while managing employee absences or disputes.
Understanding administrative leave through an example
Imagine your small business receives a complaint about an employee’s behavior, and an investigation is needed to understand the situation. Instead of immediately disciplining the employee, you decide to place the employee on administrative leave to allow for a thorough investigation. During this period, the employee is still paid but does not come to work until the situation is resolved.
In another example, an employee may need to take time off for medical reasons, but they have used all their sick leave. In this case, the employee could be granted administrative leave to ensure they are not penalized for the time away while they focus on recovery.
An example of administrative leave in action
Here’s how administrative leave might be referenced in an employee handbook or agreement:
“In the event of a workplace investigation, the employee may be placed on administrative leave, during which time they will continue to receive their regular pay and benefits. Administrative leave is a neutral status pending the outcome of the investigation.”
Conclusion
Administrative leave is a temporary leave from work where an employee continues to receive pay and benefits, often used in situations that require investigation, reassessment, or personal time away from the workplace. For SMBs, understanding and applying administrative leave effectively can help maintain a fair and productive work environment while managing employee absences or disputes in a neutral way.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.