How does sabbatical leave work in the UK?

According to Adecco, there is one little known benefit on the rise in 2024 – sabbatical leave. Although it may seem daunting to a business to offer this as a perk, research has indicated that sabbaticals can have a positive impact for employers. With Employment Hero’s State of Wellbeing at Work Report showing that  65% of employees have felt burnt out due to work, and sabbaticals leading to “a decline in stress and an increase in psychological resources and overall wellbeing,” with positive changes remaining long after the employee has returned to work. This could be the perk that your business needs to keep stress low and employee morale high.  What does that mean for businesses? More engaged, productive employees and increased employee retention.  McDonald’s was one of the first companies to offer a sabbatical leave programme back in 1977. Ten years ago, 25% of the companies on Fortune’s “Best Companies to Work For” list offered paid sabbaticals.  In the UK, reports have indicated that 28% of companies offer unpaid sabbatical, and 16% offer paid sabbatical leave. And with 47% of workers saying that sabbatical leave is the non-financial benefit that excites them the most, it is a perk that businesses should consider offering.  But with all the misinformation about sabbaticals, it’s no surprise that companies are nervous to make it an option for their employees. In the interest of demystifying sabbatical leave for businesses, we have broken down exactly what it is, and what it’s not.

What is sabbatical leave?

Sabbatical leave is an extended break from work, which allows employees to pursue other interests. They are typically used for a specific purpose outside of work, such as travel, study or volunteer work. During this period, employees remain part of their organisation, but are exempt from regular duties and can either be paid or unpaid.  Unlike paid time off, there is no statutory entitlement to sabbatical leave in the UK. Because there’s no specific entitlement, the conditions for taking a sabbatical must be individually agreed between the employer and employee. However, employees may request a longer period of time off under flexible working rules (as amended by the Employment Relations (Flexible Working) Act 2023). Under the new rules, all employees have a right to make a flexible working request from day one, and can now make up to two requests every 12 months. This update has removed the requirement for an employee to have 26 weeks’ continuous service, so that now requesting flexible working is a ‘day-one’ right.

How long is a sabbatical?

There is no standard amount of time for a sabbatical, however they usually last from four weeks, up to a year. Less than four weeks would normally be taken as annual leave, and if the sabbatical were to last longer than a year, this would more likely be viewed as a career break.

Curious? Here are some examples:

• Buffer offers a six week paid sabbatical after five years with the company.
• Deloitte offers a three to six month paid sabbatical for volunteering, or to work on personal or professional development at 40% of normal salary. What’s more, staff can take a one month unpaid sabbatical for any reason.
• BrewDog’s main sabbatical programme offers four weeks of paid sabbatical after five years’ service.
• Tesco offers a sabbatical in the form of a  ‘lifestyle break’ which gives employees up to three months off, unpaid.
• Patagonia offers a two month paid sabbatical to work with an environmental group of the employee’s choice.

Is a sabbatical the same as a career break?

Sabbaticals may be called career breaks but the legal ramifications are different, and the main consideration is whether or not the employment contract remains in place during the leave. Unpaid leave is a broad term covering all types of leave without pay. The typical scenarios are:

• Additional leave where paid leave has been exhausted
• Sabbaticals
• Career breaks
• Emergencies
• Unpaid parental leave
• Time off work for public duties, such as jury duty
• Medical appointments
• Compassionate and bereavement leave

Unpaid leave generally applies to shorter periods of time than career breaks and, as with sabbaticals, the contract usually stays in place and the employee returns to the same job. Sabbaticals can be paid or unpaid, or paid a percentage of normal salary. Career breaks are typically used for longer periods during which the employment contract is usually discontinued. A career break may be used when a parent doesn’t want to come back to work after parental leave has ended.

What is the difference between flexible working and a sabbatical?

Flexible working is about having more control over how, when, and where you get your work done. This means that flexible working adjustments focus on the day-to-day and could include part-time schedules, compressed hours, remote work options, or flexible start and finish times. These arrangements allow employees to structure their work around their lives, boosting morale and potentially increasing productivity. On the other hand, sabbaticals are extended, typically unpaid, leaves of absence. This means during a sabbatical, although still employed, an individual is not conducting their day to day work activities.

How does sabbatical leave work?

In the UK, employees can take sabbaticals in one of two ways: as paid or unpaid leave, or as a temporary break from employment. Either way, these should be governed by a sabbatical agreement. Where employees make a flexible working request, the employer has a duty to consider requests fairly and can follow the Acas Code of Practice on flexible working requests. Employers have the right to refuse flexible working requests on the basis of a specific business need. However, in the current climate, employers may be keen to agree to requests for unpaid sabbaticals due to the salary savings, and even as an alternative to making redundancies. Where a sabbatical request is not made under flexible working legislation, it is up to the employer and employee to agree the terms. A key legal issue that employers must address is what happens to the employment contract (including employee benefits and continuity of service) during the sabbatical. If the sabbatical is to be paid, typically the contract remains in place, which also preserves the employee’s continuity of service. Unless the company has a specific policy regarding sabbatical leave, specific ongoing contractual terms must be negotiated between the parties, such as leave entitlement, benefits, and salary payments. During unpaid sabbatical leave, typically the contract of employment does not remain in place. However, the employer may agree to preserve continuity of service.

Why do employees choose to take a sabbatical?

If it’s not already clear why an employee might want to take a sabbatical, let’s break it down into three main themes: Taking a break: With burnout and stress making headlines on a regular basis, an employee may simply want a break. According to Employment Hero’s The State of Wellbeing at Work Report,  65% of workers have felt burnt out due to work. Due to this, it can sometimes be important for an employee to take a sabbatical to recover or avoid burnout. According to a study of university professors, those who went on sabbatical experienced less stress at work upon their return. Upskilling: Learning sabbaticals are all the rage, and for very good reasons. We already mentioned Deloitte and Buffer who offer paid sabbaticals for learning and career development opportunities. Deloitte and McKinsey, among others, sponsor employees to attend full-time MBA programmes after a certain length of service. Life experience: Taking a sabbatical is a great opportunity to gain fulfilling life experiences, and come back to work wiser and more resilient. And besides, school isn’t the only time to learn, right? In their book The 100-Year Life, Lynda Gratton and Andrew Scott argue that increased life expectancy will bring unprecedented challenges – challenges that we aren’t prepared for when our education is front-loaded in our early years. So taking time out to learn along the way is essential. Or better yet, let’s embrace and encourage lifelong learning and experimentation. Surely a great use of a sabbatical, we think.

Is everyone entitled to sabbatical leave?

There are no specific employment laws giving the right to a sabbatical in the UK, although the right to request flexible working may be used by employees to structure a sabbatical. As there is no governing legislation, the terms of a sabbatical tend to be governed either by a company’s sabbatical policy, or by specific agreements between the employer and employee. We can see why employers may be anxious about offering sabbatical leave, but it doesn’t have to be perceived as negative. There are several benefits for employers who support sabbatical leave.  We already know the benefits that an extended break can provide for employees, from learning new skills, taking time out, or to focus on other projects. But what about benefits for employers? At first, it might seem like a resourcing headache, plus a nightmare for payroll. And while we agree that business continuity is important, especially for small businesses, there are a number of benefits that sabbaticals can provide to employers.

• Improved employee retention – it’s a great benefit to offer, and employees tend to return from their sabbatical refreshed, energised and motivated. That’s a boost for retention, and also for productivity.
• Attracts top talent – sabbaticals aren’t the norm, and they aren’t often listed on company benefits. If you do have a policy on sabbatical leave, you’re likely to attract the best candidates in their field seeking a company offering flexibility.
• Improved skills in the workplace – employees returning from a sabbatical are likely to have a wealth of skills and experience to share with their colleagues. These could be interpersonal skills, or specific to their role or team. Either way, we embrace cultures of learning. And if there are real barriers to learning or upskilling within your company, then releasing an employee to go on a sabbatical to gain skills elsewhere is a smart use of resources.

Can an employer refuse a sabbatical?

Of course, there’s nothing to stop an employer refusing a request for sabbatical. But before you go turning down those requests, bear in mind how it might benefit you as an employer. After all, perks such as this are good for business.  We’re advocates for doing leave management right, but we know it’s not easy – especially for small businesses. If you don’t know where to start, check out our guide to leave management for more tips. And if you’re inspired to go up a level with the benefits you can offer and want to create a sabbatical leave policy – keep reading. We’ve got you covered.

How to create a sabbatical policy for your company

So let’s look at what goes into creating sabbatical policies. And if you need a refresher on creating workplace policies,take a look at our guide.

1. Create a clear policy

Your policy should clearly set out what your employees need to know about taking a sabbatical. This will include details such as who is eligible for sabbatical leave, when they become eligible, how much time can be taken, how frequently, and whether or not it will be paid. The policy is important because it creates clarity, which can help protect against misunderstandings which could lead to disputes and claims. Remember, part-time employees must be given the same consideration as full-time employees, and any selection criteria should not create an imbalance for those with other protected characteristics.

2. Create a request process

Ideally this will sit alongside your existing leave request process so that line managers have visibility over leave requests. Effective leave management is important as it allows for consistency across the business for annual leave, sick leave, etc. It also reduces errors and increases productivity, satisfaction and retention levels.

3. Implement a clear system

Whether this is already set up in your HR software or your HR team creates a new system, it will need to integrate with payroll to ensure that employee records are kept up to date. The system should address departure and return dates, points of contact, keep in touch arrangements, and benefits such as bonuses, holiday entitlement and pension contributions.

4. Talk about it

The last step is to communicate your sabbatical policy. In this Great Reset era – which is now being exacerbated by the cost of living crisis – benefits like sabbaticals will set you apart from your competition and could be a defining part of your retention strategy. Flexibility is what workers are looking for, so don’t forget to shout about it in your EVP.

The wrap up

Whether you’re considering a sabbatical leave policy, being inundated by requests for flexible working arrangements, or even looking for ways to avoid redundancies, there are plenty of benefits for employers and employees alike when it comes to sabbaticals. However you manage leave requests, having a robust HR system will make it a breeze for you. If you want to find out how Employment Hero’s Employment OS can help you hire top talent, as well as drive employee engagement, all while automating complex payroll, book a demo today!