Unpaid leave is authorised time away from work during which an employee receives no salary but generally retains their job, contract, and continuity of service. It is used when paid leave has run out or does not apply — for extended travel, study, family matters, or personal circumstances — and is granted at the employer's discretion unless a statutory right exists.

Some forms of unpaid leave are protected by law. The UK gives parents a right to unpaid parental leave to care for a child, and many EU countries provide statutory unpaid carers' or family leave. In these cases the employer cannot simply refuse, though they may be able to postpone the timing.

Even though no pay changes hands, unpaid leave still affects accrual, benefits, and headcount planning, so it needs to be recorded properly. Tracking it as a distinct leave type in Calamari's Time Off module keeps balances and reporting accurate.