LOP Full Form

LOP or Loss of Pay, refers to a situation where an employee takes leave without sufficient leave balance but with the employer’s approval. During LOP, the employee doesn’t receive a salary for the specific day of leave. It’s like taking unpaid leave and can affect the employee’s earnings. Employers allow LOP for unplanned time off, causing a temporary loss of salary.


Employees Who Avail Leave Against the Company Policy Would Also Come Under LOP.


Factors Considered When Marking LOP in Salary

1. Length of the Employment Contract: LOP calculations are made depending on the contract of employment and company policies. Employees on an annual contract will have their yearly income considered while making LOP calculations.


2. Tenure of Employment: Usually, employees in probation period are not allowed LOP without a valid reason.


3. Additional Benefits: Full-time or permanent employees are eligible for LOP against other benefits like overtime, sick leave, bonus, etc.


4. Nature of Work: In most cases, some categories of employees who perform hazardous duties are not allowed to choose LOP.


Can LOP be Reversed?

Yes, HR is authorized to track all employee attendance and make necessary changes. If an employee has failed to apply for leave due to some technical issue or manual error, then such incorrect entries can be corrected by LOP reversal in the HRMS software.

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