In today’s evolving workplace, employees are placing greater emphasis on flexibility and well-being rather than just higher pay. If you are looking to retain talent at your company, one way is by creating a leave policy that is supportive and mindful. This will ensure employee well-being and consequently retentivity. Several companies are already walking in that direction!
However, if you want to formulate a leave policy, you must also be aware of the legal guidelines guiding the leave policies of companies in India. Here, take a look at the different types of leaves in India you can choose to include in your company’s leave policy and which law of the land recognizes them.
Casual leave is a short-term absence from work, usually for personal reasons or emergencies, that doesn't require prior approval and is limited to a certain number of days per year. Casual leaves in India are paid.
Eligible employees of a private company are entitled to eight days of casual leave every year. These leaves are credited to each employee’s leave account every quarter.
All employees of a private company that is part of the non-manufacturing industry in India are eligible for this leave.
The Shop & Establishments Act, Chapter IV, Section 11, Sub-section 2, mentions the rules concerning casual leave in private companies being governed under the act.
Employees cannot carry forward their unused quota of casual leaves over to the next year. Thus, there is also no maximum limit on casual leaves that are allowed to be accumulated over a period.
Companies do not need medical proof to approve a request for casual leaves because such leaves are not to be used for medical or health-related purposes but rather for personal matters, short-term needs, or unforeseen events.
Sick leave is a period an employee takes off from work due to illness or injury, allowing them to recover without losing their job or pay.
The number of sick leaves available to employees in India varies by the state where the employee works. For example, employees working in the private sector in West Bengal are granted 14 days of sick leave with half pay, whereas employees working in the private sector in Karnataka can take up to 12 days of leave with full pay.
All employees working for private companies in India's non-manufacturing sector are entitled to this leave.
Providing sick leaves to employees is mentioned in the Shops & Establishment Act of every state in India.
Sick leaves in India can neither be carried forward nor encashed if not used.
Medical proof is not usually required if an employee working in the private sector in India takes sick leave for up to 3 days. However, one may be required if sick leave is taken for more than three days.
Earned leave, also known as annual leave or paid time off, is leave that employees accumulate over time as part of their employment benefits.
Although employees in India are granted one earned leave for every 20 days of work, the duration of earned leaves in India varies by company.
All company employees who have worked for at least 240 days in a calendar year are eligible for earned leave.
The Shops & Establishments Act 1961 mentions the rules regarding earned leaves for private sector employees under Chapter IV, Section 11, Sub-sections 3, 4, and 5.
Earned leaves can be accumulated for a maximum period of 45 days and carried forward. However, the rules for accruing and carrying forward these leaves may vary from state to state.
Earned leaves do not require medical proof to be sanctioned.
Maternity leave is a period a female employee takes time off before and after the birth of her child.
Originally, a female employee was granted a paid leave of up to 12 weeks (6 weeks before the day of delivery of her child and 6 weeks after) for the birth of her first two children. The new maternity leave rules for this leave type in India require the employer to grant their expecting female employees paid leave of up to 26 weeks (a maximum of 8 weeks before the delivery date and 18 weeks after). This period is 12 weeks in the case of the third child.
Originally, all female employees working in India who have worked at least 160 days in the 12 months before the date of delivery were eligible for this leave. The amended act requires female employees to have worked at least 80 days.
The provision of leaves for expecting female employees in India was introduced in the Maternity Benefit Act of 1961. This act was later amended in 2017.
Maternity leaves cannot be carried forward to the next calendar year.
Maternity leave in India requires medical proof that states the confirmation of a pregnancy.
Adoption leave is time off from work that an employee can take when they adopt a child. It allows the adoptive parent(s) to bond with the new child and take care of their needs.
Adoption leave in India is granted to female employees of a company for 12 weeks from when the child is handed over to her.
All female employees in India who have legally adopted a child below the age of 3 months or who have had a child through surrogacy are entitled to adoption leave.
The Maternity Benefit Amendment Act of 2017 introduced the adoption leave for female employees in India. The rules for obtaining adoption leave were inserted in Section 5 of the original Maternity Benefit Act of 1961.
Adoption leave in India cannot be carried forward.
Adoption leave does not require medical proof, but other supporting documents may be required.
Compensatory leave is a type of leave in India that is granted to employees as compensation for working extra hours or on days normally designated as holidays.
Employees in a private company in India must be granted compensatory off by their employers within 2 months of the weekly holiday the employee has worked on or twice the rate of wages he is entitled to.
All company employees who have worked extra hours or on holidays are eligible for this leave in India.
The Shop & Establishments Act, Chapter III, Section 10, Sub-sections 3 & 5, mentions the rules concerning compensatory off in private companies being governed under the act.
Private companies may allow the carrying forward of compensatory offs according to their company’s leave policy.
Compensatory offs do not require medical proof.
Quarantine leave is a type of leave in India that is granted to employees who are required to isolate themselves due to exposure to a contagious disease or as a precautionary measure during a public health crisis.
All employees are informed of a certain period of quarantine leave as per government laws.
All company employees who have contracted a contagious disease are eligible to request a quarantine leave.
The Industrial Employment Act of 1946, under Schedule 1A, Section 10, Sub-section C, mentions the rules concerning quarantine leave in India.
Quarantine Leave cannot be carried forward.
Medical proof is required for the sanction of a quarantine leave.
Public holidays, or festival holidays, are official days off recognized by the government of India to celebrate or observe national, cultural, religious, or historical events.
There are a total of eight public holidays or festival holidays guaranteed to all employees in India.
All company employees in India are guaranteed public holidays or festival holidays.
The Shops & Establishments Act 1961 mentions the rules regarding the public or festival holidays for private sector employees under Chapter IV, Section 11, Sub-section 6. The Industrial Employment Act of 1946, under Schedule 1A, Section 10, Sub-section A, also lays down the guidelines for public holidays or festival holidays for industrial establishments.
The public holidays or festival holidays cannot be carried forward by employees.
The public holidays or festival holidays are guaranteed by the government and do not require medical proof.
India may not have formal laws for every workplace benefit, but companies aren’t waiting around. From parental leave to marriage leave, organizations are embracing new ways to support their employees. These policies reflect a deeper understanding of the evolving needs of the workforce. Employers are realizing that a happy workforce drives success, even in the absence of legislation. While legal changes are slow, the private sector is already moving forward, proving that progress doesn’t always need to come from law books. Some of the other leave types in India are below:
Paternity leave is a period that a father takes off from work following the birth, adoption, or fostering of a child.
Private companies in India are not mandated by any law to provide paternity leave to their employees, although the central government grants 15 days of paternity leave to all government employees. However, some private companies do grant paternity leave to their male employees.
Paternity leave in India is available for male employees whose spouse has given birth to a child.
No act in India has yet granted paternity leave to male employees in a private company.
Paternity leave granted to male employees in private companies of their own accord cannot be carried forward.
Paternity leave requires medical proof confirming childbirth for the approval of the leave.
Childcare leave is a type of leave that allows parents (both mothers and fathers) to take time off from work to care for their young children, especially during their early years or in situations where the child is sick or needs special care.
The duration of childcare leave is 180 days. However, it may vary from company to company.
Female employees with minor children (below the age of 18 years) are eligible to apply for this leave.
No act under Indian law mandates childcare leave for employees in the private sector.
Childcare leave cannot be carried forward.
Childcare leave does not require medical proof.
Leave Without Pay is a type of unpaid leave that employees can take when they need time off from work but do not have enough paid leave available. During LWP, the employee retains their job but does not receive their salary or wages for the time they are away.
There is no fixed duration for which employees working in the private sector in India can avail of leave without pay. It is at the sole discretion of the employee’s employer who approves or rejects the requested duration of leave without pay after taking into consideration the situation of the employee and business needs.
All employees who have exhausted their quota of paid and accrued leaves are eligible to request leave without pay.
Leave without pay is not mandated by any act in India.
Leave without pay cannot be carried forward.
In cases where leave without pay is requested on grounds of a serious medical condition, medical proof may be required to aid its approval.
Bereavement leave is paid or unpaid time off from work that an employee can take when a close family member or loved one passes away. It allows them time to grieve and manage personal matters related to the death.
The duration of bereavement leave granted to employees in the private sector varies across companies. It may range between 3 and 10 days. In cases where an employee requires a longer period of bereavement, he may speak with the relevant authority for the same.
Any employee of a company who has lost to death an immediate family member (such as parents, grandparents, siblings, spouse, or in-laws) is eligible to apply for bereavement leave.
No act in India has yet introduced a bereavement leave policy for employees in the private sector in India.
Bereavement leave cannot be carried forward.
A bereavement leave request may require a death certificate or an obituary to be approved by the employer.
Marriage leave is a period that an employee is allowed to take off from work to get married. It gives the employee time to celebrate the wedding and take care of any related personal matters.
A marriage leave can be granted to an employee working with a private company for a range of 3—15 days.
Any employee who is soon to get married is eligible to request a marriage leave.
No act in India legally mandates private companies to offer marriage leave to their employees. However, private companies may have a provision to grant their employees marriage leave from their quota of casual and earned leaves.
Marriage leave cannot be carried forward to the next calendar year.
Marriage leave does not require medical proof; rather, some companies may require the employees to submit a marriage invitation card or the marriage certificate as proof.
Sabbatical leave is an extended paid or unpaid period off from work, usually lasting from a few months to a year, that allows employees to take a break for personal or professional development.
A sabbatical leave in India may be granted to employees for a minimum of 2 weeks to a period spanning several months.
The eligibility rules for sabbatical leave in India vary across companies. Some companies may require employees to have completed a certain period of working days with the company, whereas others may approve based on their performance in the company.
No act in India legally mandates private companies in India to grant sabbatical leave to their employees.
Sabbatical leave in India cannot be carried forward.
If sabbatical leave is requested for reasons related to health and well-being, the employer may ask for medical proof and other supporting documents.
Keeping track of leaves doesn’t have to be a pain. With Sup Bot, employees can request time off right from Slack, MS Teams, and Webex, and managers can approve it without the endless back-and-forth. No more scrambling to check leave balances - everything’s tracked automatically. Sup Bot even sends handy reminders, so nobody forgets who’s out and when. Whether it’s a sick day, vacation, or PTO, Sup Bot makes leave management simple and hassle-free. It’s the easy way to keep things running smoothly without breaking a sweat.
Here's a video that demonstrates how Sup Bot can help you manage leave requests:
India offers various leave types to support employee well-being. Common categories include earned leave (EL) for vacations, casual leave (CL) for personal matters, and sick leave (SL) for health issues. Beyond these, many companies provide maternity leave, and some have embraced paternity leave too. You’ll also find marriage leave, bereavement leave, adoption leave, compensatory leave for extra work hours, and more. Even when leaves run out, employees can request Leave Without Pay (LWP). Though policies differ across organizations, companies are increasingly adopting more leave options to maintain work-life balance and employee satisfaction.
All employees working in the private sector in India are guaranteed six types of leave, which include casual leave, earned leave, sick leave, public holidays, festival holidays, and compensatory off. Each of these leave types serves a distinct purpose, ensuring employees have the necessary time off for personal matters, health concerns, or to observe important occasions. Additionally, all female employees are mandatorily entitled to maternity leave, allowing them to take time off during and after childbirth to care for their newborns.
There is no formal period leave policy in India as of yet, although several attempts have been made to recognize period leave as a mandatory entitlement for female employees. Despite the lack of a nationwide policy, several progressive Indian companies, such as Zomato, Swiggy, and Byju's, have taken the initiative to offer period leave to their female employees. This move reflects a growing awareness of women’s health issues and aims to create a supportive work environment.
There is no uniform paid time off policy in India that is followed by all private companies. While most organizations follow the standard leave types such as casual leave, earned leave, sick leave, public holidays, maternity leave, and compensatory leave, the inclusion of additional leave categories is at the discretion of individual companies. Organizations can tailor their leave policies to meet the unique needs of their employees as well as align with their company objectives.
The higher management of all companies must invest in a PTO tracking tool that guarantees flexibility and smooth operations. Sup Bot PTO Tracker is a powerful tool that caters to the varied leave management needs of Indian companies, reducing the HR workload and simplifying leave management. With its ability to customize leave types, automate the approval process, and limit the number of leaves accessible to employees, Sup Bot is the go-to app for tracking leaves in India.
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