Unpaid Leave (Code 350): Rules, Documentation, and Responsibilities
Unpaid leave (code 350) is a specific type of break in employment that requires proper documentation and an understanding of the responsibilities for both the employer and the employee. In this article, we will discuss all the most important aspects related to this solution.
What is Unpaid Leave?
Unpaid leave is a break from work during which the employment relationship is suspended. This means that the employee does not perform their duties, does not receive a salary, and the employer is exempt from paying social security contributions.
Definition and Use of Code 350 in ZUS Documents
Code 350 in ZUS documents indicates a specific type of break in social security coverage. This is a benefit/break code used in ZUS RSA reports, which informs that an employee is not subject to social security due to being on unpaid leave.
Difference between Code 350 and Break Code 111
Different codes are used in ZUS documents depending on the type of break:
- Code 111 - used for standard unpaid leave
- Code 350 - used in special cases, e.g., when an employee on parental leave has another basis for social security contributions
Employer and Employee Responsibilities
Application for Unpaid Leave and its Approval
According to Article 174 of the Labor Code, granting unpaid leave requires a written application from the employee. The application should include:
- Employee's first and last name
- Employer identification data (company name and address)
- Place and date of preparation
- Request for unpaid leave
- Start date and planned duration of the leave
- Employee's handwritten signature
The employer has the right to refuse to grant unpaid leave without the need to justify their decision.
Written Information about Granting Unpaid Leave
After a positive review of the application, the employer should issue a written confirmation of the unpaid leave, specifying its exact time frame.
Employer's Responsibilities to ZUS
Reporting Unpaid Leave to ZUS
Although an employee on unpaid leave is not subject to social security contributions, the employer is not exempt from the obligation to submit settlement documents to ZUS. The fact of being on unpaid leave must be properly indicated in the documents.
The Monthly ZUS RSA Report and its Significance
The ZUS RSA report is used to account for periods when an employee did not work or was not subject to social security contributions. It is a key document that informs ZUS about breaks in social security coverage.
Filling Out the ZUS RSA Form with Code 350
In the ZUS RSA report, the employer indicates the period of unpaid leave with the appropriate break code. Code 350 is used in special situations when the employee has another basis for social security contributions.
Specifying the Start and End Dates of the Leave
The "From" and "To" dates in the ZUS RSA report cannot exceed the first and last calendar day of the month for which the report is submitted. The period of unpaid leave is shown within the calendar month.
Number of Unpaid Leave Days and Non-Working Days
The unpaid leave period is shown as a total period including both working days and non-working days, including Saturdays, Sundays, and holidays. For example, leave from May 5 to May 18 is shown as 14 calendar days.
Consequences of Unpaid Leave for the Employee
Impact on Employee Benefits and Social Security
During unpaid leave, the employee is not subject to any social security contributions with ZUS. The rights and obligations resulting from the employment relationship are suspended, and the employer does not pay social security contributions.
Unpaid Leave and the Right to Vacation Leave
Unpaid leave lasting at least 1 month results in a proportional reduction in the amount of vacation leave. This rule applies to both continuous leave and several shorter leaves totaling at least 30 days in a calendar year.
Inability to Work During Unpaid Leave
A medical leave does not interrupt unpaid leave, unlike vacation leave. The employee remains on unpaid leave even in case of illness.
Sickness Benefits after the Leave Ends
After the unpaid leave ends, the employee may have a limited right to sickness benefits, as the leave period is not included in the social security contribution period.
Special Cases of Unpaid Leave
Unpaid Leave for Work with Another Employer
The Labor Code provides for a special form of unpaid leave granted for the purpose of working for another employer. This requires:
- An agreement between the employers
- Written consent from the employee
- Specifying the period, salary, and type of work
Unpaid Leave and Military Service
Regulations provide for the possibility of granting unpaid leave to an employee called up for territorial military service.
Employment with Another Employer During Leave
During unpaid leave, an employee has the right to take up work with another employer. This is one of the main differences between unpaid leave and vacation leave.
Legal Basis and Sources of Information
The Labor Code and Unpaid Leave
The main legal basis for unpaid leave is Article 174 of the Labor Code, which specifies:
- The requirement for a written application from the employee
- The period of leave is not included in the length of service
- The possibility of recalling an employee from leave longer than 3 months for important reasons
Where to Find Document Templates and ZUS Interpretations
Templates and interpretations can be found on official websites:
- ZUS Portal (zus.pl)
- Ministry of Family and Social Policy
- Specialized legal portals
FAQ
Can an employer refuse unpaid leave?
Yes, an employer has the full right to refuse to grant unpaid leave without the need to justify their decision. Unpaid leave is not an employee's right, but an option that requires the employer's consent.
How long can unpaid leave last?
The regulations do not specify the maximum duration of unpaid leave. It can last a few days, months, or even years. For leave longer than 3 months, the parties can provide for the possibility of recalling the employee for important reasons.
Can an employee on unpaid leave be dismissed?
An employee on unpaid leave is subject to a protection period. Dismissal is possible only in special cases, such as mass layoffs or the closure of the company, but only after at least 3 months of leave.
How does unpaid leave affect vacation leave?
Unpaid leave lasting at least 30 days (continuously or cumulatively in a calendar year) causes a proportional reduction in the amount of vacation leave. It is calculated using the formula: annual vacation amount ÷ 12 months × number of months worked.
Can you work during unpaid leave?
Yes, an employee can take up employment with another employer during unpaid leave. However, they cannot perform work for the employer who granted them the unpaid leave.
Summary and Recommendations
Unpaid leave (code 350) is a complex legal solution that requires proper documentation and an understanding of the responsibilities of all parties. The key elements are a written application from the employee, the employer's consent, and properly indicating the period in ZUS documents. Employers should remember the obligation to submit ZUS RSA reports with appropriate break codes, even when the employee is not subject to social security contributions.
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