LOP Reversal | Meaning and Definition

What is LOP Reversal?

When an employee does not show up for work or requests leave, his or her attendance for the day is recorded as LOP or Loss of Pay, and he or she is not paid for that day. When an employee arrives at work but his or her attendance is not recorded due to a manual or technological fault, the attendance mechanism records a LOP (Loss of Pay), and the day’s income is reduced. The company must reverse or refund this LOP, resulting in the employee receiving a reverse salary. This is referred to as LOP Reversal. The LOP Reversal report is created in the system and can be printed. 

Factors Determining LOP

In most businesses, pay loss is calculated according to a defined scale. The duration of the employment contract, the nature of work, the length of time the firm has employed the employee, and his or her pay rate are all important considerations in assessing the amount of lost pay. Some industries have laws regarding pay loss and may offer additional benefits such as vacation pay, sick leave, bonuses, and so on.

These systems do not apply to certain categories of employees. These benefits are not available to employees who work in jobs that are considered risky to others. The quantity of LOP they are appropriate for may also be determined by the extent of responsibility for worker safety.