Study leave

What it means

Study leave is time off that an employer grants an employee for studying alongside work, sitting exams or writing a thesis. It is one of the obstacles at work on the employee's side linked to raising qualifications.

If the studies serve the employer's needs, the employee is entitled to leave to the extent set by the Labour Code and receives wage compensation for that time. The law provides, for example, for time to attend classes, prepare for exams or write a final thesis.

If the studies are unrelated to the employer's needs, the employer does not have to grant paid leave. It may still accommodate the employee with unpaid leave or adjusted working hours, which is often part of a wider employee training policy.

How it works in practice

The terms of study are usually set out in a training agreement, which defines the type of study, the amount of leave, cost coverage and the employee's commitment to stay with the employer for a certain time. If the employee breaks it, they may have to repay part of the costs.

In payroll, study leave is recorded as a special type of absence with compensation at average earnings. The employee should provide confirmation of studies and exam dates so that the leave can be booked correctly and defended in an inspection.

Costs of studies related to the employer's activity are generally tax-deductible for the employer and not taxable income for the employee. Where the studies are unrelated to the job, the employer's payment may be treated as taxable income of the employee.

What to watch out for

Study leave is not the same as annual leave and should not be replaced by it. If the employer makes the employee use annual leave for exams although they are entitled to paid study leave, it breaches the Labour Code and risks a dispute.

The amount of leave and whether it is paid depend on whether the studies serve the employer's needs. It is wise to confirm this in writing before the studies begin, so that no uncertainty about the employee's entitlement arises later.