A clear and well-structured leave policy is essential to maintain productivity and ensure employee well-being in any organization. A good leave policy in India outlines the types of leave available, eligibility criteria, and procedures for requesting time off. The whole point is to help your employees overcome confusion and avoid unauthorized absences.
This policy helps foster a fair and organized workplace by setting clear expectations for both employees and management. This template is designed to assist organizations in creating a comprehensive leave policy that suits their specific needs.
This Template Will Help You:
- Establish clear guidelines for various types of leave to ensure consistency and transparency
- Ensure compliance with labor laws, especially for private companies in India
- Promote fairness by applying leave entitlements and procedures equally
- Simplify attendance management and reduce unauthorized leave
- Create a straightforward leave request process to support work-life balance
Leave Policy Template
1. Purpose
At <Name of the Company>, we aim to provide our employees with flexible leave options to help them balance their personal and professional lives. This leave policy aims to give you the ability to manage your time off effectively so that you can attend to both personal and professional commitments.
This leave policy sample outlines the different types of leave available and a structured approach to managing the requests and approvals.
2. Scope and Applicability
This leave policy applies to all employees of <Name of the Company>, regardless of their role or employment type. It covers both full-time and part-time staff, ensuring uniform leave management across the organization.
3. Types of Leave(s)
At <Name of the Company>, we recognize the importance of multiple leave options to support the diverse needs of our employees. The following types of leave are designed to ensure that employees can manage personal, family, and health-related matters without disrupting their professional responsibilities.
Our leaves include:
3.1 Public Holidays
At <Name of the Company>, all employees get 10 public holidays during a calendar year. At the beginning of the year, employees will receive the holiday calendar through the HRMS portal so they can plan their leaves accordingly.
- Fixed Holidays: Nine holidays are mandatory and apply to all employees.
- Flexible Holiday: Employees can choose one additional holiday from a list of approved holidays.
These holidays are available to all employees, including those on their notice period.
3.2 Privilege Leave (PL)
Employees are entitled to 18 days of privileged leave each year, separate from public holidays and weekends.
- Accrual: Privilege leave accrues at 1.5 days every month. Employees become eligible to use it after completing their probation period.
- Eligibility: All permanent employees are eligible for privileged leave after probation.
- Accumulation & Carry Forward: Employees can carry unused privilege leave to the next year, but there are a few limits that apply depending on your location. The table below shows the maximum carry forward and total balance allowed:
| State | Annual PL Allocation | Max PL Carry Forward | Max PL Balance Allowed |
| Karnataka | 18 Days | 18 Days | 45 Days |
| Maharashtra | 18 Days | 18 Days | 45 Days |
| Haryana | 18 Days | 12 Days | 30 Days |
| Others | 18 Days | 12 Days | 30 Days |
Any leave exceeding the maximum balance will automatically expire.
- Encashment: When employees leave the company, they can cash out their earned privilege leave, up to the maximum balance for their location.
- Availing Privilege Leave: Employees can take privilege leaves in full or half days. They must coordinate with their manager to ensure that their daily work is not affected.
3.3 Casual Leave
All employees are entitled to offer casual leave. Employees receive 12 days of casual leave per calendar year, excluding public holidays and weekends.
- Accrual: Employees earn 1 day of casual leave per month. At the beginning of each quarter, the company adds 3 days of leave to the employee’s balance for that quarter. If an employee joins mid-quarter, they receive leave on a pro-rata basis.
- Conditions: Employees cannot encash casual leave or use it to offset their notice period when leaving the company. Casual leave does not carry over to the next year, and any unused leave at the end of the year will expire. You can only apply for up to 3 days of casual leave at a time through the HRMS portal.
3.4 Birthday and Anniversary Leave
<Name of the Company> gives all employees two special leaves—one for their birthday and one for their wedding anniversary. To use the anniversary leave, employees must update their marriage date in the HRMS portal. These leaves can only be taken on the specified dates and cannot be carried forward or used at a later time.
3.5 Childcare Leave
Employees with children under 5 years old can take 5 days of childcare leave once a year. This leave cannot be split into multiple parts and must be for a valid childcare reason. Employees should apply for this leave through the HRMS portal at least 7 days in advance.
3.6 Compassionate Leave
In the event of the death of an immediate family member (parents, grandparents, siblings, spouse, children, in-laws), employees can take up to 7 days of paid compassionate leave. If the employees need more time off, they can combine privileged leave with compassionate leave.
3.7 Maternity Leave
We provide 26 weeks of paid maternity leave for female employees who have worked at least 80 days in the 12 months before the delivery date.
Up to 8 weeks of leave can be taken before the expected delivery date. Women with two or more surviving children are entitled to 12 weeks of leave, up to 6 weeks before delivery.
Maternity leave must be taken in one continuous period and cannot be split. This benefit is available for a maximum of two pregnancies during employment.
- Application: Employees must inform their L1 manager at least one month in advance and apply on the HRMS portal, along with a medical certificate indicating the expected delivery date.
- Maternity Medical Leave: Employees can take up to 4 additional weeks of leave for health issues related to pregnancy, childbirth, or medical procedures. Any further leave is subject to the existing leave balance and management approval.
- Extension: Employees can request up to 2 months of unpaid leave after maternity leave, subject to approval from their L1 and L2 managers and HR.
- Return to Work: Upon returning, we will make every effort to place the employee in the same or a suitable role.
- Leave for Miscarriage: Employees who experience a miscarriage are eligible for up to 6 weeks of leave, in line with the Maternity Benefit Act.
3.8 Paternity Leave
Male employees at <Name of the Company> can take 10 consecutive days of paternity leave within three months of their child’s birth or adoption. This benefit is available for the first two children. Employees must notify their L1 manager at least 7 days in advance.
3.9 LGBTQ Parental Leave
LGBTQ employees are eligible for 26 weeks of parental leave in cases of adoption or surrogacy. The leave starts when the child is handed over to the employee.
3.10 Adoption Leave
Female employees who adopt a child are entitled to 26 weeks of continuous leave, beginning from the date the child is officially handed over to the adopting mother.
3.11 Leave for Commissioning and Surrogate Mothers
Commissioning and surrogate mothers are entitled to 26 weeks of continuous leave starting from the date the child is handed over.
3.12 Special Medical Leave
Special medical leave can availed in the case of serious medical conditions that require prolonged treatment. Employees can avail up to 7 days of Special medical leave in one stretch whenever needed. Medical certificate of the treating doctor to be submitted as proof.
3.13 Compensatory Off
Employees can accumulate up to 2 days of compensatory leave for working on public holidays or weekends. These leaves must be used within 30 days and cannot be encashed or applied toward the notice period.
3.14 Personal/Sabbatical Leave
Employees with at least 2 years of service can take up to 90 days of unpaid sabbatical leave. Approval from the HR Head, Practice Head, and Function Head is required at least one month in advance. No salary or benefits are provided during the sabbatical, but the period counts toward gratuity and pension eligibility.
3.15 Leave Without Pay
Leave Without Pay (LWP) follows the sandwich rule, meaning weekends and holidays within the leave period will count as part of the continuous leave.
4. Procedure to Apply for Leave
Here’s the step-by-step process for applying for leave through the HRMS portal:
- Log in: Access your HRMS portal or app using your employee credentials.
- Navigate to the Leave Section: Click on the “Leave” or “Leave Management” tab on the dashboard.
- View Leave Balance: Check your available leave balance for different types of leave.
- Select Leave Type: Choose the type of leave you want to apply for (e.g., Casual, Privilege, Maternity).
- Pick Dates: Select the start and end dates for your leave. Enter the reason for the leave in the designated field (if required).
- Submit Request: Review your leave request and submit it for approval.
- Approval Process: Your L1 Manager will receive a notification to review and approve your leave request.
- Track Status: You can track the approval status on the HRMS portal under the “Leave Requests” section.
5. General Guidelines
- All leaves must be approved in advance by the employee’s L1 manager or Function Head.
- Any leave taken without approval will be considered as Leave Without Pay (LWP).
- Employees should plan their leave ahead of time, except in urgent situations, and discuss it with their L1 Manager.
- Leave entitlement is prorated based on the employee’s joining date within the calendar year.
- During the notice period, employees are only allowed to take Birthday Leave and Compassionate Leave.
- During probation, the employees are eligible for casual leave only. Privileged leave will still be accrued but it will only be available at the end of the probation period.
6. Leave Summary
This policy provides employees with a range of leave options to address personal, medical, and family needs. Here’s a summary of all the leaves and its respective timelines:
| Type of Leave | Number of Days/Weeks |
| Public Holidays | — Days |
| Privilege Leave | — Days |
| Casual Leave | — Days |
| Birthday Leave | — Day |
| Anniversary Leave | — Day |
| Childcare Leave | — Days |
| Compassionate Leave | — Days |
| Maternity Leave | — Weeks |
| LGBTQ Parental Leave | — Weeks |
| Paternity Leave | — Days |
| Adoption Leave | — Weeks |
| Leave for Commissioning and Surrogate Mothers | — Weeks |
| Covid Leave | — Days |
| Compensatory Off | — Days |
| Personal/ Sabbatical Leave | — Days |
