Leave policy (India)

[Company name] Leave Policy

Effective [date]. Applies to all employees in India.

Before you adopt this policy

Minimum leave depends on the state where each employee works. Each state's Shops and Establishments Act sets the minimum, and for factories the Occupational Safety, Health and Working Conditions Code does. Check the rules for every state where you have staff, and set the numbers below at or above them.

Leave types

• Earned leave (EL) / privilege leave: [number] days a year, credited [monthly / quarterly / yearly]. Up to [number] days carry forward.
• Casual leave (CL): [number] days a year, credited at the start of the year. Lapses at year end.
• Sick leave (SL): [number] days a year, credited [monthly / yearly]. Up to [number] days carry forward.
• Maternity leave: as required by law.
• Leave without pay (LOP): when other leave is used up.

New joiners receive leave on a pro rata basis from their joining date.

Applying for leave

• Apply in [Birch / your HR system] at least [number] days before planned leave, with the dates and a reason.
• For sudden illness, tell your manager on the first day and apply when you return. For sick leave of more than [number] consecutive days, we may ask for a medical certificate.
• Your manager approves or declines. Leave taken without approval may be treated as LOP.

Holidays

We observe [number] paid holidays each year, published in [Birch] before the year starts. They include Republic Day (26 January), Independence Day (15 August) and Gandhi Jayanti (2 October), plus the festival holidays required in your state.

Leave without pay

LOP is deducted at [one day's salary = monthly gross / number of days in the month].

Encashment

• Unused EL above the carry-forward limit is [encashed at basic salary / lapses, where the law allows].
• When you leave, unused EL is encashed in your full and final settlement.

Maternity and other statutory leave

Maternity leave and benefits, and any other leave required by law, apply in addition to this policy.

Questions go to [HR contact].