How do I add an unpaid leave on Salary.lu?

Unpaid leave allows an employee to be temporarily absent from work without receiving salary during that period. This type of leave requires the employer's agreement and must be properly documented on the platform.

Legal framework for unpaid leave

In Luxembourg, unpaid leave is not a legal right but rather a possibility that must be negotiated between the employer and employee. The employer is not obligated to grant unpaid leave, and the terms must be mutually agreed upon.

Key points about unpaid leave:

• Requires written agreement between employer and employee
• Duration and conditions must be clearly defined
• The employment contract remains active during the leave period
• Upon return, the employee resumes their position with the same terms and conditions

Steps to add an unpaid leave record

To add an unpaid leave record for an employee:

1. Navigate to the "Leaves" page
2. Click the "Add" button
3. Select "Unpaid leave" as the leave type
4. Enter the start and end dates of the leave period
5. Fill in any additional required details
6. Save the leave record

Important considerations for unpaid leave

Impact on salary and payroll

• The employee does not receive any salary during the unpaid leave period
• For partial months, the salary will be prorated based on the days worked

Social security and insurance coverage

During unpaid leave:

• The employee is responsible for enrolling voluntarily in health insurance and pension insurance for the duration of the unpaid leave
• The employer must inform the employee of this obligation
• Voluntary affiliation ensures continued social security coverage during the absence
• The employee should contact the relevant social security authorities to arrange voluntary coverage before the unpaid leave begins

Employment contract and rights

• The employment contract is suspended but remains valid during unpaid leave
• The employee's seniority continues to accrue (unless otherwise agreed)
• Upon return, the employee has the right to resume their previous position
• Any changes to the employment terms must be mutually agreed upon

Duration and formalities

• The duration should be clearly defined with specific start and end dates

• A written agreement is essential and should specify:

1. The exact dates of the unpaid leave
2. The reason for the leave (if applicable)
3. Conditions for early termination or extension
4. Information about the employee's obligation to voluntarily affiliate to health and pension insurance
5. Any other specific arrangements

• Both parties should retain a copy of the agreement

If your employee hasn't worked for a full month

If your employee is on unpaid leave for an entire month and hasn't worked at all during that period, their contract on Salary.lu needs to be terminated and ended on the last working month. An updated exit declaration must be sent to the CCSS with the end date of the last working month. Here are more details: What to do if my employee hasn't worked for a full month?

Updated on: 13/01/2026