Andrada Popescu (Noerr): HR 1 on 1 – Let’s Talk About Sabbaticals

During this heatwave, you might think that taking a break from work might seems like a luxury reserved for the lucky few. However, sabbaticals, once considered a rare perk, are increasingly gaining traction as a valuable tool for both employees and employers. Whether it is to pursue personal passions, recharge creativity, or simply take a well-deserved breather, sabbaticals offer numerous benefits for that extend far beyond the individual taking the time off.

By Andrada Popescu, Senior Associate and Labor Law Expert at Noerr

In this article, we will focus on the transformative power of sabbaticals, as well as the legal aspects employers need to be aware of when deciding to implement a sabbatical programme.

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TYPES OF SABBATICALS

The concept of sabbaticals is not regulated by Romanian law. Therefore, it is up to the employers to decide whether and how they grant sabbaticals to their employees. In practice, we have identified three major types of sabbaticals:

• paid sabbaticals: granting time off while continuing to pay the salary in whole or in part.
• unpaid sabbaticals: during which the employees do not receive any remuneration for the time they take off.
• partial sabbaticals: employees may reduce their work hours or take intermittent breaks while having an active employment agreement. This flexible approach allows individuals to balance work and personal life, fostering greater overall wellbeing and job satisfaction.

BENEFITS OF SABBATICALS FOR EMPLOYERS

While the benefits for employees are clear, savvy employers should recognise that sabbaticals also have significant benefits for the organisation as a whole. By supporting and encouraging sabbaticals, employers can foster a culture of trust, engagement and innovation, translating into a more resilient and competitive workforce. Here are some benefits for the employers implementing sabbatical programmes:

1. Enhanced employee retention and engagement: You could say that this is actually one of the most powerful tools for employee retention and engagement. Offering employees the opportunity to focus on their wellbeing and personal development leads to a sense of loyalty to their employer. This automatically results in more engaged and motivated employees, leading to higher productivity, creativity and job satisfaction, as well as a higher retention rate.
2. Improved employer branding: Employers that prioritise employee wellbeing and grant innovative benefits such as sabbaticals may seem more attractive to job seekers, potentially attracting top talent and enhancing the organisation’s employer brand.

3. Knowledge transfer, skill development and boosted creativity: Some employees may use sabbaticals to gain new skills and experience or recharge their creative batteries. This can bring fresh insights and expertise back into the workplace, enriching the overall talent pool within the organisation.

CHALLENGES OF IMPLEMENTING SABBATICALS

While sabbaticals offer numerous benefits, they can also present challenges for both employees and employers. Understanding and addressing these challenges is essential to ensure the success and effectiveness of sabbatical programmes. Here are some common challenges to consider:

1. Workload management: One of the primary challenges of sabbaticals is managing workload and ensuring continuity of operations during employee absences. In order to address this challenge, employers may decide to (i) hire fixed-term employees or lease temporary employees, (ii) redistribute tasks or (iii) adjust deadlines to accommodate the absence of the team members.
2. Financial implications: Sabbaticals may have financial implications for both employees and employers. In the case of unpaid sabbaticals, employees need to plan and budget carefully to cover their expenses, while employers may incur additional costs associated with hiring/leasing temporary employees or providing coverage for absent employees. In the case of paid sabbaticals, employers should also take into account the salary of the absent employees.
3. Impact on team dynamics: The absence of key team members during sabbaticals can disrupt team dynamics and collaboration, leading to decreased productivity and morale. Managers may need to proactively address any issues that arise and provide support to remaining team members to ensure continued effectiveness and cohesion.
4. Return to work transition: Transitioning back to work after a sabbatical can be challenging for employees, especially if they have been away for an extended period. Employers can support employees during this transition by providing opportunities for reintegration, offering access to training and development resources, and acknowledging their contributions and experiences during their time away.

LEGAL CONSIDERATIONS

While the benefits of sabbaticals are clear, implementing a successful sabbatical programme requires careful planning and consideration of various legal factors. Here are some key considerations for organisations looking to implement a sabbatical programme:

1. Draft a sabbatical policy which should include at least:
   • the definition of a sabbatical at the employer (e.g. whether the employer grants only unpaid sabbaticals), as well as the maximum duration of the sabbatical;
   • clear and objective criteria establishing who is eligible to participate in the sabbatical programme such as: length of service, job level and employee performance;
   • the procedure for requesting and approving the sabbatical, including guidelines for evaluating and prioritising requests;
   • the rights and obligations of the employer and the employees prior to the sabbatical (e.g. task handover/coordination within the team), as well as during the sabbatical.

The policy must be communicated to and acknowledged by all the employees. Employers should also regularly evaluate the effectiveness of the sabbatical programme and solicit feedback from employees to identify areas for improvement.

2. Conclude an addendum to the employment agreement of the employee who will take the sabbatical – As a rule, during a sabbatical, the employment agreement is suspended by mutual agreement of the parties. Therefore, the employer and the employee must sign an addendum to the employment agreement to reflect that suspension and register the amendment in the REVISAL.

In the case of a partial sabbatical, the addendum to the employment agreement should reflect the reduction in working hours and the corresponding reduction in salary for the partial sabbatical period.

If the employer grants a paid sabbatical, an addendum to the employment agreement should be concluded specifying how the employee will be paid during the leave. For example, the employer and the employee may agree that the entire sabbatical will be paid for in one instalment at the beginning of the sabbatical or in several instalments throughout the sabbatical. In the latter example, certain risks from a fiscal perspective should also be assessed by the employer.

3. If the employer decides to redistribute some tasks to certain employees, the employer must conclude an addendum to the employment agreement of the employee in question in order to reflect the temporary change in their tasks/assignments.

CONCLUSION

By offering employees the opportunity to recharge, pursue passions and develop new skills, employers can cultivate a more engaged, innovative and loyal workforce. However, it’s crucial for employers to be aware of the practical challenges and the legal aspects associated with implementing sabbatical programmes. Careful planning, clear policies and thorough legal considerations are essential to ensure the programme’s success and compliance.