5 Tips for Coordinating Leaves of Absence With Performance Management

Coordinating a leave of absence with performance management can be a balancing act for your human resources team. On the one hand, it’s not surprising that an employee’s job performance would change when they’re returning from a leave of absence or if they’re on a reduced work schedule. At the same time, employees have certain rights, and they can’t be fired or penalized for taking time off if they qualify for job-protected leave.

So what’s the solution to maintaining an effective performance management process without violating an employee’s leave entitlement? Since each case is different, you’ll need to tread carefully to meet your legal requirements under employment law.

Let’s take a look at how to manage leave requests, track performance metrics for employees who are on leave, and apply your company’s leave of absence policies fairly and consistently.

What to Know About Leave of Absence Management

Before we get into coordinating leaves of absence with performance management, what are the eligibility requirements for different types of leave? And do employees have the same rights regardless of what type of leave they’re on? Not exactly.

A voluntary leave of absence is one in which the employer grants the leave voluntarily, such as for personal time or a sabbatical under a company’s personal leave policy. This type of leave isn’t job-protected, which means an employee could be fired for performance issues arising from a reduced work schedule or an extended leave of absence.

Mandatory leave refers to a leave of absence under state or federal leave laws like the Family and Medical Leave Act (FMLA). Eligible employees are entitled to 12 weeks of FMLA leave in a single 12-month period, and they can’t be fired while on leave.

They can take unpaid leave to:

• Be a caregiver for an ill or injured family member
• Bond with a new child (i.e., parental leave)
• Treat their own serious health condition

In addition to federal laws, some state laws provide paid family leave, and there are even local laws that may provide jury duty leave, paid time off (PTO), or paid sick leave. Employees might also qualify for leave for some physical or mental health conditions under the Americans with Disabilities Act (ADA).

Why Coordinating a Leave of Absence With Performance Management Is Complicated

A job-protected leave of absence can complicate performance management because an employee may have more protections on leave than they otherwise would. An extended leave of absence may also interfere with regularly scheduled performance reviews.

Not only that, but an employee may be entitled to ADA reasonable accommodations when they return to work if they aren’t able to perform their usual duties.

If you need to take disciplinary action while an employee is on intermittent leave or engaged in the leave of absence process — or place them on a performance improvement plan — it’s important to establish that these actions were taken independently of the employee’s leave of absence.

For example, an employee who is genuinely underperforming can be fired when they return to work, or they can be penalized for violating the employee handbook.

On the other hand, an employee can sue if you hold them to the same performance standards while they’re on intermittent FMLA leave or a reduced work schedule.

5 Best Practices for Coordinating a Leave of Absence With Performance Management

Undeniably, balancing an employee leave of absence with performance management is tricky. So how can you do it in a way that meets your organization’s needs while supporting your employees’ well-being? Here are five best practices to keep in mind.

1. Create clear company policies

First, create company policies that clearly distinguish between different types of commonly confused situations. For example, your employee handbook might contain:

• A leave of absence policy that outlines employee benefits like sick days, paid family leave, and other types of absences
• A remote work policy that describes when an employee can work from home
• A disciplinary action policy that defines each step in the disciplinary process

Address employee requests for leave under the most relevant policy, and use separate workflows for each process — such as the ADA interactive process for remote work accommodations and your disciplinary action process for performance issues.

Never take an employee’s performance into account when deciding whether to approve their leave request. That can give them grounds to take legal action against you.

2. Document performance issues continually

Next, commit to keeping a record of all employee performance issues. Document all problems as soon as they arise. If you wait until an employee takes leave or returns from leave to bring them up, it may give the impression that you’re retaliating against them or using their request for leave as a pretext to fire them.

According to the U.S. Department of Labor, “FMLA leave cannot be used as a negative factor in an employment action” or when considering promotions. When you use a platform like Pulpstream to track key performance metrics and standardize the disciplinary process, you’ll maintain a paper trail to justify your actions. 

3. Adjust performance goals for employees on leave

One mistake that employers can make is holding an employee accountable to the same goals while they’re on intermittent leave or a reduced work schedule. A 2024 court case found that an employer had erred by not adjusting the work expectations of an employee who had been working reduced hours while she was on leave.

If an employee needs to be placed on a part-time schedule, don’t expect them to meet the same deadlines that they did when they were working full time. Any performance reviews conducted during this period should take the modified goals into account.

4. Consider ADA accommodations when employees return to work

When an employee returns to work after an illness or injury, it’s important to consider whether any performance issues could be due to an ADA-qualifying condition. This might include a physical disability or mental health condition like PTSD.

If an employee can fulfill the functions of their job with a reasonable accommodation, then they may be entitled to one. You’ll need to engage in the ADA interactive process to find a suitable accommodation, such as a flexible schedule or a modified workplace.

Pulpstream’s case management tools and automated workflows help you navigate the return-to-work and ADA interactive processes with ease. Employees can even upload their own documentation using a self-service portal to protect their privacy.

5. Check in with employees who are on leave

Coordinating leave and performance management doesn’t just ensure HR compliance — it can also help employees feel supported and ultimately improve employee retention. And by addressing performance issues upfront, you can find out what resources an employee needs to do their job better.

When an employee is on an extended leave of absence, check in often to find out how they’re doing and when they plan to return to work — but avoid asking about sensitive health care issues or expecting them to work while on leave.

With Pulpstream, you can send out automatic emails and SMS notifications to keep the lines of communication open and streamline the return-to-work process.

Coordinate Leaves and Performance Management With Pulpstream

If an employee has performance issues while on a leave of absence or when returning from one, it’s important for HR professionals to treat them fairly. Firing or disciplining an employee who is on a leave of absence can violate state or federal law. However, you can take action against an employee if they are genuinely underperforming.

Pulpstream’s comprehensive leave management tools allow HR teams to coordinate leaves of absence with performance management on the same platform. You can use our cloud-based platform to standardize your company policies, track leave balances and performance metrics, and document employee disciplinary actions.

Pulpstream’s no-code interface is so intuitive that even nontechnical team members can use it. Request a demo today to see how it works!