A leave policy is an integral part of HR management for companies. Employees must be aware of their paid leave days and other holidays. Most candidates ask about the type of leaves they will get during the recruitment phase. Your organization’s leave policy matters so companies should have a detailed leave policy. The types of work leaves availed by the employees in the company also set an impression on your employer.
This article will discuss the most common types of leaves a company must provide to employees to retain and recruit talent.
What information must be there in a company's leave policy?
A leave policy must have detailed information on the number of leaves employees are entitled to. It must also mention the types of absence leaves they are eligible for and how to apply for the leaves.
HR managers must maintain a leave policy for the company because it ensures employees will get essential time off to go on vacations, recover from illness, take care of any issues or take a sabbatical when needed.
If you are unaware of what types of leave to include in the policy, this article will guide you through it.
1. Privilege Leave/Earned Leave/Annual Leave
A privilege or earned leave is the annual leave for the employees working for a company within a year. While the norm in the country is to offer 18 earned leaves, the number of privilege leaves varies across the organizations. If workers want to use their privilege leaves, they need to get formal approval from their managers in advance. Usually, unauthorized absences are adjusted against privilege leaves.
Employees are most motivated by the earned leave mentioned in their contract because such annual leave can be encashed if they do not use them throughout the year.
2. Casual leave
Causal leave is the most common type of leave workers ask for vacation, rest, family events, and taking time off to relax and unwind. Every employee is entitled to causal leaves for a proper work-life balance. As employees must be able to have a life outside work, they need time off to travel, attend events, participate in life events and spend more time with family. Casual leaves are essential to offer workers enough time to focus and prioritize life when required. This makes them appreciate the company and feel comfortable working with such employers.
In India, most companies offer one to two casual leaves a month. The quantum varies from state to state, and there is no legal provision on the number of casual leaves. Still, most companies provide 8 to 15 casual leaves in a year. Generally, workers cannot club casual leave with another type of leave, and they can neither be cashed nor carried forward.
3. Sick leave
Sick leave is the time off provided for employees to recover from an illness or if they get injured and need time for healing. Companies must offer sick leaves for employees to enable them to take time off in case of health and well-being needs without losing pay. Depending on your country of operation, the requirement and provisions around sick leaves might differ, so it is essential to consult with lawmakers on the same.
Companies must give their workers 15 days of sick leave in India in a year. However, it is only the minimum, and companies must be flexible with the number of sick leaves they allow employees in case of severe health issues.
4. Maternity leave
Working women often face family planning challenges as they take a sabbatical from work, which might affect their careers. To ensure the joy of motherhood is not dimmed, companies offer maternity leaves.
In India, the law gives women the right to take six months of maternity to manage their pregnancy and postpartum. As per the Maternity Benefit Act, 1961, women can also take maternity leave in case of miscarriage or abortion. The duration of maternity leave offered varies depending on the employer; usually, among all the types of leaves for employees, maternity leaves provide the most extended break.
As per the law, women employees can extend their maternity leave for up to 16 months without termination. However, it is at the company’s sole discretion to decide how many days of this duration will be unpaid.
5. Paternity leaves
As women get maternity leave, male workers are entitled to paternity leave. Soon to becoming parents, male employees can ask for paternity leave during the final days of pregnancy or immediately after the baby’s arrival.
Paternity leave is still not common in private companies, but some reputed companies such as Google, Microsoft, and IBM offer paternity leave in India. As company policies regarding paternity leaves differ across the organizations, it is essential to check your company’s leave policy to know if they offer paternity leave.
6. Marriage leave
As the title suggests, this type of leave allows employees to get paid when they get married. Some companies even provide such leaves in case of marriage in the family. It is one of the most common types of leaves available by the company employees to attend a family function or be part of one.
7. Sabbatical Leave
To allow employees enough time to upskill and sharpen their knowledge or to prepare for an upcoming project, certain types of leave are offered, known as sabbatical leave. Employees need sabbatical leave to contribute to the organization and help improve its operation.
Employees can ask for a sabbatical leave if they want to invest time in education advancement, career break, or deal with family/health crises. However, unlike other types of work leaves, there is no legal provision around these. Also, sabbatical leaves are not approved immediately, so employees need to plan them.
8. Bereavement leave
In the unfortunate event of the demise of a family member, employees are entitled to take bereavement leaves. As no laws are making it mandatory to offer such leaves, most companies provide bereavement leaves on the ground of compassion.
Among different types of leave, this concept is still new in India but a much-needed one. Employees need time to grieve, participate in last rites or handle other legal situations after death in the family, and bereavement leaves allow them to do so without losing pay.
9. Half-day leave
When the employees take a half-day off, either the first or second half, it is termed half-day leave. Generally, workers take half-day leaves to take care of minor responsibilities like a doctor’s appointment, attending a PTM or going to the bank. This offers them an outstanding work-life balance as they can take care of personal and professional responsibilities.
10. Loss of Pay Leave
Also known as unpaid leave, loss of pay leave is when an employee takes leave after all their unpaid leaves are over, and it doesn’t fall under any particular category. Employees can still take leave, but the company will deduct the payment for the day.
11. Compensatory Off
Compensatory offs or comp-offs are provided to employees when they work on non-working days such as weekends to complete their assignments or do extra work. Comp-offs are a gesture to appreciate their extra hard work and contribution to the company.
12. Public holidays
Every country has designated mandatory public holidays. Events like Independence Day, Republic Day, Diwali, Holi, October 2nd, etc., are public holidays in India. Companies are obliged to let employees take off these days.
13. Menstruation Leave
Some progressing companies allow women employees menstruation leave to enable them to manage the increased requirement for hygiene during the period. While not common in India, some of the largest companies offer menstruation leave to their employees, such as Swiggy, Zomato, and Byjus.
State-specific different types of leaves in India
While the Factories Act 1948 sets the general guidelines for leave policy in India, there are also specific state-specific laws. Here’s a glimpse of the types of leaves as per each state:
Types of Leaves As Per Different Labour laws in India
|Sl. No.||Act||Type of leave||Entitlement||No. of leaves||Carry Forward|
|1||Factories Act, 1948||Earned Leave||Completing 240 days work||One leave for every 20 days work||30 days|
|2||West Bengal Shops and Establishment Act||Earned Leave||A year of work||14 days||28 days|
|Sick Leave||From joining date||14 days (Half pay)||56 days|
|Casual Leave||From joining date||10 days||Cannot be accumulated|
|3||Bihar Shops & Establishment Act And Jharkhand S&E Act||Earned Leave||240 work days the previous year||One leave for 20 days of working||45 days|
|Sick Leave||From joining date||12 days (Half pay)||NA|
|Casual Leave||From joining date||12 days||NA|
|5||Delhi S&E Act||Privilege Leave||5 days for every 4 months for permanent employees||15 days||45 days|
|Sick Leave/ Casual Leave||1 day for every 1 month of employment||12 days||NA|
|6||Andhra Pradesh S&E Act||Privilege Leave||Completing 240 days work||15 days||60 days|
|Sick Leave||1 day for every 1 month of employment||12 days|
|Casual Leave||1 day for every 1 month of employment||12 days|
|Special Casual Leave||Once after completing 2 years in service||6 days||NA|
|7||Karnataka S&E Act||Earned Leave||240 work days the previous year||1 every 20 work days||30 days|
|240 work days the previous year||1 every 20 work days||40 days|
|Sick Leave||From joining date||12 days|
|8||Kerala S&E Act||Annual Leave||After complete a year in service||12 days||24 days|
|Sick Leave||From the joining date||12 days||NA|
|Casual Leave||From the joining date||12 days||NA|
|Special Casual Leave||After an operation or surgery||6 days for men and 14 days for females||NA|
|9||Bombay S&E Act||Annual Leave||240 work days the previous year||21 days for every 60 days of work||42 days|
|10||Orissa S&E Act||Annual Leave||240 work days the previous year||For Adult:- 1 day for every 20 days worked For Child:- 1 day for every 15 days worked||30 days for adults and 40 days for child|
|Sick Leave||From joining date||15 days||NA|
|11||Rajasthan S&E Act||Annual Leave||240 work days the previous year||For Adult:- 1 day for every 12 days worked For Child:- 1 day for every 15 days worked||30 days for adult and 40 days for child|
|12||Tamil Nadu S&E Act||Privilege Leave||A year in service||One every month||24 days|
|Sick Leave||Join Date||12 days||NA|
|Casual Leave||Join Date||12 days||NA|
|13||Uttar Pradesh S&E Act||Earned Leave||A year in service||15 days||45 days|
|Sick Leave||After six months in service||15 days||NA|
|Casual Leave||After 6 months in service||10 days||NA|
|14||Punjab S&E Act||Earned Leave||After 20 days of continuous employment||One in 20 days||30 days|
|Sick Leave||Joining date||7 days||NA|
|Casual Leave||Joining Date||7 days||NA|
Every company must have a clear leave policy detailing the types of leaves provided for employees. However, the diversity of the leaves can be hard to handle in absence of a leave management system like Truein.
Truein is an AI-powered face recognition attendance system that provides end-to-end leave management for HR teams to view, update, assign, approve, and deduct leaves. It also readily integrates with most payroll software making it much easier to adjust salary according to leaves taken.