As an employer, you may have heard of the term ‘sabbatical leave’. Sabbatical leave gives your employees a chance to grow professionally and personally whilst taking a break from work. This article covers sabbatical leave in New Zealand, why it may be something you should consider including in your workplace, and the benefits it offers to both employees and employers.
What is Sabbatical Leave?
Sabbatical leave is an extended break from regular work duties, meaning the employee does not perform their usual role at work. The employee’s time away can vary in duration, from a few weeks to several months or even a year. In New Zealand, sabbaticals are not mandatory, but some employers offer this as a benefit to their employees.
Employees are also entitled to regular annual leave as it is accrued over time. For example, full-time employees are entitled to 4 weeks of annual leave after working 12 months at a company. In contrast, sabbatical leave tends to be negotiated individually with each employee, and there is no entitlement for employees to take annual leave.
Why Should Employers Offer Sabbatical Leave?
There are several benefits from an employee’s perspective.
| Benefit | Explanation |
| Rejuvenation | One of the primary reasons employees opt for sabbatical leave is to rejuvenate themselves. Continuous work can lead to burnout, and sabbaticals offer a chance to step away, recharge, and return to work with renewed energy and enthusiasm. |
| Skill Enhancement | Sabbaticals can be an excellent time to develop new skills or enhance existing ones. This can be anything from learning a new language to acquiring certifications or exploring new interests. |
| Travel and Exploration | Many employees use this time to explore their backyard, engage in hiking, camping, or simply travel. |
| Personal Growth | Sabbaticals can facilitate personal growth. They offer a chance to reflect on one’s life, set goals, and make significant life decisions. |
At the same time, sabbaticals offer several benefits from an employer’s perspective.
| Benefits | Explanation |
| Employee Retention and Satisfaction | Offering sabbatical leave as a benefit can be a powerful tool for employee retention. It signals to employees that their well-being and growth are essential to the company. |
| Skill Development | Employers can benefit from sabbaticals as well. Employees may return with new skills or fresh perspectives that can benefit the organisation. |
| Enhanced Creativity | Time away from the daily grind can lead to increased creativity. Employees who take sabbaticals may come back with innovative ideas and solutions. |
Legal Considerations For Sabbaticals
New Zealand employment law does not explicitly address sabbatical leave. However, it does govern other types of leave, such as annual leave. Employers and employees typically negotiate sabbatical leave as part of an employment agreement or a separate policy. Some considerations when implementing it include the following:
| Legal Consideration | Explanation |
| Negotiation | Employees and employers should discuss the terms of the sabbatical in advance. This includes: + the duration; + whether it will be paid or unpaid; and + how the absence will affect the employee’s return to work. |
| Leave Policy | Employers should have a clear sabbatical leave policy in place to ensure consistent and fair treatment of all employees. |
| Financial Planning | Employees need to consider their financial situation during the sabbatical. This includes: + budgeting for the period without regular income; and + planning for any additional expenses. |
| Job Security | While sabbaticals are generally unpaid, employees should discuss job security and their role upon return. |
| Documentation | It is advisable to document all agreements related to the sabbatical in writing to avoid any misunderstandings later on. |
Benefits Beyond the Break
The benefits extend far beyond the break itself. Employees who take sabbaticals often return to work with:
- a fresh perspective;
- increased motivation; and
- enhanced skills.
For employers, this can translate into a more engaged and innovative workforce.
Additionally, sabbatical experiences can foster personal growth and a greater appreciation for work-life balance. Many who take sabbaticals report improved mental health and reduced stress upon returning to work.
Key Takeaways
Sabbatical leave is a unique opportunity for employees to rest and have some personal development. While not without its challenges and considerations, the benefits to both employees and employers make it a valuable option. While both sabbatical and annual leave provide employees with time away from work, they differ in their purpose, duration, frequency, payment, and the level of customisation in the agreement. If you want to include unpaid sabbatical leave as part of your employee’s benefits, you should state this in your company’s sabbatical leave policy.
If you are looking to put a sabbatical leave policy in place, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.
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