A request for extended leave is something every business will encounter at some point, yet many small businesses are not prepared when it happens.
Employers typically have policies that cover vacation time, sick days, or a week or two of paid leave. However, what happens when an employee needs more time than that? Whether it’s surgery, the arrival of a child, or a personal emergency, extended time away from work can create challenges for both the employer and the employee.
Larger organizations often have formal leave policies in place, as private employers with 50+ employees must comply with the Family and Medical Leave Act (FMLA). But small businesses, even those with just a few employees, benefit from having a clear and documented approach to extended leave as well. Without it, decisions are often made on a case-by-case basis, which can lead to confusion, inconsistent treatment, or unrealistic expectations.
Let’s take a closer look at why every business should define what extended leave looks like in their organization, what to include in an extended leave policy, and how it helps everyone involved.
What counts as extended leave?
For this conversation, we define extended leave as any absence longer than two weeks. Most businesses already have a paid time off (PTO) olicy that covers vacation or sick time, but two weeks is a common limit.
Extended leave covers situations that go beyond that, such as:
• Medical procedures and recovery
• Pregnancy, postpartum, or adoption
• Caregiving for a family member
• Mental health needs
• Military service, such as a National Guard member being called to active duty
• Education or certification programs
Even if these events are rare, they’re part of life. It’s better to plan now than to make reactive decisions later.
Note: Some forms of extended leave, such as military service or pregnancy-related recovery, may be protected under federal or state law. It’s important to understand your legal obligations in these cases before creating or applying your policy. Contact the whyHR team if you have questions.
What to include in your extended leave policy
Your policy doesn’t have to be long or complicated. Start with these core elements:
1. Define what qualifies as extended leave.
Be clear about the types of leave covered and when the policy goes into effect, such as any leave lasting longer than two weeks.
2. State how long the person’s position will be held.
Most small businesses find one month is reasonable. You can allow for extensions but require a written request if more time is needed.
3. Explain how pay works during leave.
Outline whether employees must use their remaining days of paid time off as part of their extended leave. Then, specify whether any paid leave is offered beyond that. Some small businesses choose to offer four or six weeks of paid extended leave, with the option to extend into unpaid leave if necessary. Include all details in writing to avoid confusion.
4. Document requests and conversations.
Require all leave requests in writing. Follow up on any verbal conversations with written confirmation so expectations are clearly documented.
5. Set expectations for return-to-work.
Include a clear return-to-work expectation as part of your leave policy. This supports transparency and helps avoid miscommunication during or after the leave period.
What if you offer unlimited PTO?
If your business offers unlimited PTO, this policy becomes even more important.
Without a separate extended leave policy, your unlimited PTO policy may require you to pay someone for a full month or more off. If there are no limits in writing, any amount of leave could be considered fully paid under the existing policy.
Be proactive, not reactive
Having a written extended leave policy isn’t just about protecting your business; it also gives your employees a sense of security.
When people know what to expect, they’re more likely to communicate early and work with you to find solutions. A clear policy creates consistency, reduces stress, and supports long-term retention. It also ensures you’re not overpromising or underpreparing.
Extended leave requests are going to happen. The question is whether you will be ready to handle the request in a timely and fair manner.
At whyHR, we help small businesses create policies that make sense for their size, culture, and goals. If you’re ready to get a plan in place, let’s talk.