Dear Mr. Navin,
I agree with the Attendance policy Mr. Bbrindaprathi provided, but would like to suggest a change in that- "Make grace period of 30mins, mark late if any one comes after 9:40am to 10:30am. 5 late marking will lead to one 1/2 days absent in a month". Give 7 Sick leave in a year or have a look at the Shops & Establishment Act of that State, for Sick Leave, what are the provisions are there.
If a person wants then he can exchange his sick leave with pay at the end of the year. 1sick leave = 1 day pay(Maximum 5 sick leave can be accumulated). By this you can control absenteeism in your organization.
Carry Sick Leave and Privilege leave for two years. They can at the end can take privilege leave aor can exchange it with pay, same as of sick leave, but there will be no limit for PL. If a person having 8 PL in balance he can claim for its total 8 days pay.
By this you can control absenteeism in your organization.