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Hi Everyone!

I am a Senior HR Executive of a mid-sized IT Company. Here in this organization, HR plays a key role in implementing policies and making any necessary policy changes. Currently, our organization does not have a proper leave policy in place to follow.

I understand that each company has its own way of designing their leave policies. Can you please suggest the best way to design a leave policy?

Gia Noble 🌟

From India, Bangalore
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HI!

Please find few details of the leave policy which we follows. I am also in a IT company.


Leave Policy

Leave calendar starts from January to December.

Date of commencement of service will be used as the basis for calculating Leave.

Casual Leave (CL)

Entitlement: 7 days. For all employees

· Will not be utilized for going on a vacation.
· Is being provided for meeting emergencies of a personal nature for which planning cannot be done.
· Cannot be availed for more than 2 days at a stretch.
· Tax incidence if any will be born by the employees.
· Cannot be encashed
· Cannot be accumulated.


Sick Leave (SL)

Entitlement: 5 days. For all employees

· Beyond 2 days requires a doctor’s certificate.
· Cannot be encashed.
· Cannot be accumulated.

Privilege Leave (PL)
Entitlement: 21 days. For all employees
  • On completion of every quarter 5 leave will be credited to employee account(in 3rd quarter - 6 leaves)
  • Employee must avail all leaves in a calendar year. The leave will be carried forward for two years.
  • PL can be prefixed/suffixed with holidays. However, holidays, which fall during the PL days, shall be taken in to account for determining the total PL taken.
  • Can be encashed.
  • Tax incidence if any will be born by the employee.
Maternity Leave (ML)
Entitlement: 90 days. For female employees only
  • On completion of 240 working days, will be credited to female employee account.
  • Employee is given 90 days ML twice in one year
  • ML must be taken much in advance and it should be 6 weeks before and after the expected date of delivery.
  • Cannot be encashed & accumlated.
Comp Off:
Entitlement: For all employees
  • In lieu of working on holidays / weekly off and completion of the extra working days.
  • Cannot be encashed.
  • Can be accumulated till the completion of Quarter.
  • Eligible for all grades.
Hope this might have helped you out.

Chitra Sharma

From India, Mumbai
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Thanks Chitra, This is really informative to me & my management people also.And one more question Chitra,do most of the companies go with the same kind of leave policy???
From India, Bangalore
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Hi,

While designing, you have to decide first how many leaves in a year you are going to provide and how you are going to segregate it, like sick leave, casual leave, education leave, etc.

In our organisation, we merged all categories into one and named it as Privileged leave.

You have to show some differences in the number of leaves that can be availed. For example:
1. For trainees - how many?
2. For employees under probation - how many?
3. For confirmed employees - how many?

The process of availing leave should include:
1. Who are the authoritative persons who can give permission?
2. How to process the leave request?
3. What factors should be considered while giving permission?

In case of an emergency, the process should involve informing the Department Head via phone and submitting a leave application later.

For occasional leave:
1. In case of death/urgency - the maximum permitted leave.
2. In case of marriage - the maximum limit.

Regarding uninformed or unauthorized leave, what is the penalty?

For employees who fall under ESI, how many leaves are allowed, and what is the process?

Maternity leave specifications.

From India, Hyderabad
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Hi Bhavani, It was really helpful ,but quick question -what do u mean by education leave -usually how many days u will give such leave to the employees
From India, Bangalore
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Is that considered as examination leave or any professional course undertaken for company sake ??????????
From India, Bangalore
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What is the rule for providing notice for availing leave? Minimum how many days one should give notice for availing leave. If the notice is not given then can any action be taken.
From India, Calcutta
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Hi!

For CL and SL, there is no particular notice to be given. However, when you have anything planned well in advance and need to take a day or two of CL, you should inform at least 3-4 days beforehand. In the case of planned PL, you need to inform about those leaves at least a month before. If the person has not informed you about those planned leaves well in advance, the best you could do is count them as LWP.

Chitra

From India, Mumbai
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Your article was really helpful to me. This will definitely help me design and implement the leave policy in my company. However, if you could clear one more doubt of mine as to what is LWP?

Thanks once again.

Cheers,
Dharni

From India, Pune
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Hi Dharni,

LWP - Leave Without Pay. In case an employee doesn't have any leaves in his account but still takes a leave, then the amount for that many number of days would be deducted from his salary.

Regards, Chitra

From India, Mumbai
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