Leave policy template

Leave policy

Company name

Effective from Effective from

1. Purpose and scope

This policy sets out the types of leave available to employees of Company name (the Company), how leave is earned, applied for and approved, and what happens to unused leave. It applies to all full-time employees on the Company’s payroll at every location. Contract staff and interns are covered by the terms of their engagement. Where the Shops and Establishments Act of a state, the Maternity Benefit Act, 1961 or any other law provides a better entitlement than this policy, the law will apply.

2. Leave year

The leave year runs from Leave year. Leave balances are calculated and credited on this basis. Employees who join during the year receive leave on a pro rata basis for the months remaining.

3. Types of leave

Earned leave (privilege leave)

Employees are entitled to Earned leave per year (days) days of earned leave per year, accrued monthly at one-twelfth of the annual entitlement. Earned leave is meant for planned time off and should be applied for at least Notice for earned leave (days) days in advance. It is normally taken in blocks of at least Minimum earned leave block (days) days; shorter absences should use casual leave.

Casual leave

Employees are entitled to Casual leave per year (days) days of casual leave per year for short, unplanned personal needs. Casual leave may be taken as a half day or a full day, and for not more than three days at a stretch. It cannot be combined with earned leave. Unused casual leave lapses at the end of the leave year.

Sick leave

Employees are entitled to Sick leave per year (days) days of sick leave per year for their own illness or injury. Sick leave of more than two consecutive days must be supported by a certificate from a registered medical practitioner. The employee or a family member should inform the reporting manager on the first day of absence. Unused sick leave lapses at the end of the leave year unless the law of the state provides otherwise.

Compensatory off

An employee who is required to work on a weekly off or a declared holiday, with the prior approval of the reporting manager, may claim one day of compensatory off for each full day worked. Compensatory off must be availed within Comp off must be used within (days) days of the day worked, after which it lapses. It cannot be encashed.

Maternity leave

Women employees who have worked for the Company for at least 80 days in the twelve months before the expected date of delivery are entitled to maternity leave under the Maternity Benefit Act, 1961: 26 weeks of paid leave for the first two children, of which not more than eight weeks may be taken before the expected date of delivery, and 12 weeks for the third child onwards. Leave of 12 weeks is available to a mother adopting a child below three months of age and to a commissioning mother. After the leave, the employee may request work from home where the nature of the work permits, on terms agreed with the Company. No employee will be dismissed or discriminated against for availing maternity leave.

Paternity leave

Male employees are entitled to Paternity leave (working days) working days of paid paternity leave, to be taken within three months of the birth or adoption of a child. This is a Company benefit and not a statutory entitlement.

Bereavement leave

Employees may take up to Bereavement leave (working days) working days of paid bereavement leave on the death of an immediate family member, meaning a spouse, child, parent, parent-in-law or sibling. The reporting manager may allow additional time as earned leave or leave without pay.

Leave without pay

When an employee has exhausted the leave available or is not eligible for the leave applied for, the Company may, at its discretion, sanction leave without pay. Salary for those days will be deducted in the same or the following month. Leave without pay does not count as service for earned leave accrual.

4. Accrual, carry-forward and lapse

Earned leave accrues at the end of each completed month of service. Unused earned leave may be carried forward to the next leave year up to a maximum accumulation of Maximum earned leave accumulation (days) days; any balance above this lapses on the last day of the leave year. Casual leave, sick leave and compensatory off do not carry forward.

5. Encashment

Earned leave is not encashed during service, except where the law of the state provides for it. On separation, the balance of earned leave, up to a maximum of Maximum encashment on exit (days) days, will be encashed at the employee’s basic salary as part of the full and final settlement. Casual leave and sick leave are not encashable.

6. Leave during probation

Employees on probation accrue earned leave from the date of joining but may avail it only after confirmation, except with the specific approval of the reporting manager and Human Resources. Casual leave and sick leave may be taken during probation on a pro rata basis. Probation of Probation (months) months may be extended by the period of any leave without pay taken during probation.

7. Applying for leave and approvals

All leave must be applied for through the Company’s leave management system before it is taken, except sick leave and emergencies, where the application must be submitted within two working days of returning to work. The reporting manager approves or rejects the request; the approval of the Second approver for long leave is also required for earned leave of more than ten consecutive days. Leave is a request and not a right until approved, and the Company may refuse or reschedule leave when the needs of the business require it. Leave not applied for or not approved will be treated as unauthorised absence.

8. Sandwich rule

When a weekly off or a holiday falls between two days of leave, the intervening weekly off or holiday will be counted as leave. Holidays falling immediately before or after a period of leave, and not between two leave days, are not counted. This rule does not apply to sick leave supported by a medical certificate.

9. Holidays

The Company observes the national holidays and the state holidays applicable to each work location, as listed in the holiday calendar published at the start of each leave year. Where the law permits, employees may choose from a list of restricted holidays.

10. Unauthorised absence

Absence without approved leave, or overstaying sanctioned leave without approval, will be treated as leave without pay and as misconduct. Unauthorised absence of Absence treated as abandonment (days) or more consecutive working days without any communication may be treated as abandonment of service and dealt with under the Company’s disciplinary procedure after due notice.

11. Policy review

This policy will be reviewed annually by Human Resources, or earlier if the law changes, and any revision will be communicated in writing to all employees. Questions about this policy may be sent to HR contact email. In the event of any conflict between this policy and applicable law, the law will prevail.