Inactive employee definition

What is an Inactive Employee?

An inactive employee is an individual whose employment has not been terminated and yet is not currently rendering any services to the employer. This individual is expected to return to work.

Examples of Inactive Employees

The following are examples of inactive employees:

  • Employees on medical leave. Workers taking extended leave due to illness, injury, or surgery under policies like FMLA (Family and Medical Leave Act).

  • Employees on maternity or paternity leave. Parents who are on leave following the birth or adoption of a child.

  • Employees on disability leave. Workers who are temporarily unable to perform their job due to a short-term or long-term disability.

  • Employees on sabbatical. Professionals granted an extended break for research, travel, or personal development, often in academic or corporate settings.

  • Employees on military leave. Workers who are serving in the military on an active or reserve basis but plan to return to their civilian jobs.

  • Employees on personal leave. Individuals taking time off for personal reasons, such as caregiving responsibilities or personal development, under an approved leave policy.

  • Employees on seasonal layoff. Workers temporarily laid off during a slow business season but expected to return when demand increases.

  • Employees on furlough. Employees placed on temporary unpaid leave due to budget constraints or economic conditions but who still hold their positions.

  • Employees on workers’ compensation leave. Individuals recovering from a workplace injury while receiving benefits but not yet cleared to return.

  • Employees on administrative leave. Workers temporarily removed from their duties while an investigation or review is conducted, such as in cases of workplace misconduct allegations.

Each of these situations involves employees who have not been formally terminated and are expected to return to work once their leave or temporary status ends.

Related AccountingTools Course

Human Resources Guidebook