How to Legally Structure a Leave Policy for a Private Limited Company?

Our organization is a private limited company operating under the Factories Act. We are looking to establish a Leave Policy within our company. Could you please provide guidance on how this should be structured legally and in line with general practice?

Some specific questions we have include:
- How many Casual Leave (CL) days should be allocated?
- How many Sick Leave (SL) days should be provided?
- Is it compulsory to offer Earned Leave/Privilege Leave?

Any additional insights or considerations regarding implementing a Leave Policy would be greatly appreciated. Thank you.

Dear Gaurav,

Requesting you to go through Chapter VII of the Factories Act, 1948. The only leave prescribed under the Act is Annual Leave with Wages. However, it does not preclude an employer from considering the grant of other kinds of leave like C.L. and S.L. either on their own or under a collective bargaining agreement.

In the case of women employees, the employer must grant maternity leave under the Maternity Benefit Act, 1961 when the occasion arises.

I have some queries regarding leaves. Hope you will help me.

Ours is a Pvt. Ltd. company from Maharashtra. I want to design a Leave policy for my company. What I know is, "earned leave and maternity leave" are mandatory as per the Act. But are casual leaves and sick leaves mandatory? Please guide me.