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Leave Rules for a service based organization

Dear HRs

As you know there are leave rules for each type of leave taken by an employee every month we are currently in the process of creating leave policy for one of our client which is a service based organization. We have the following types of paid leaves for this organization-

Leaves Table

​Casual Leaves/Personal


Sick Leaves


​Earned Leaves



28 days

Maternity Leaves

12-26 leaves

Paternity Leaves

4-6 weeks

Personal/Casual & Sick Leave

Casual Leave or CL is granted to an eligible employee if they cannot report to work due to an unforeseen situation. Casual leave can also be utilized if an eligible employee wants to take leave for a couple of days for personal reasons, but not for a vacation. Full-time salaried employees of the company will be granted 10 days of Sick leave and 10 days of Casual leave in a Year. These leaves will be granted in units of half day or full day as may be applied for an employee. If taken in units of half a day, the lunch interval will be taken as the dividing line OR 5 working hours of a day is calculated as a half day. All unused days cannot be carried out from the calendar year to the next and thus will lapse at the end of the calendar year.

Terms of Personal/Casual Leave & Sick Leave

  • No more than Two day of Casual Leave can be availed within a week. Maximum of 3 casual leaves in a month.

  • Casual Leave Days cannot be combined with Sick Leave Days or Earned Leaves.

  • The unused casual leaves cannot be encashed like Earned leaves. They simply expire when the year ends.

  • Sick Leave Days should not exceed two consecutive days unless there are extenuating circumstances communicated to the head of your department/immediate manager.

  • Employees must inform the head of their department/their immediate manager & copy to local HR (and then communicate with their working team) that they are taking a Sick Leave Day AT LEAST 30 minutes before the start of the workday. Please note, approval is given by the immediate manager.

  • For new employees or for someone who has just resigned, the casual leaves are allotted proportionately. For instance, if an employee joins the company on September 1, i.e. the middle of a year, the number of casual leaves available will be half the actual amount and will be applicable till March 31, i.e., the last day of that year.

Earned Leaves

Full-time salaried employees of the company will be granted 8 days of Earned Leave in a year. Any leave which is more than 3 working days in a row is earned leave. Earned leaves(EL) are the leaves earned by the employee for providing more than 240 days of service to the employer in a given calendar year. These leaves can be used for Travel or Vacation. If an employee is unable to utilize all the entitled earned leaves in one calendar year, then the unused earned leaves will be reimbursed or encashed. There is no provision to carry forward unused ELs to the next year.

Terms of Earned Leaves

  • The calculation of earned leaves is done monthly for the entire financial year. Ideally, the earned leaves get credited to the employee’s leave account at the start of the calendar year, but the number of leaves the employee is entitled to also depends on the number of months they worked.

  • If an employee joins the company at the middle of the financial year, then the entitled earned leaves will be calculated on a pro-rata basis, from the joining date to March 31 of the same year.

  • If an employee resigns, the entitled leaves are calculated on a pro-rata basis until the last working day. If the employee has taken any extra leaves, this will get adjusted in the final settlement amount

  • After successful completion of 1 year with the company the ‘unused earned leaves’ will automatically get encashed to the employee’s payroll of that month.

Maternity Leave

The Maternity Benefit Act regulates the employment of the women in certain establishments for a prescribed period before and after child birth and provides certain other benefits. Female employee can take paid maternity benefit for 12-26 weeks immediately following the date of her expected delivery. The company will provide the benefits and/or medical bonus and allow maternity leave and nursing breaks. Your position will be guaranteed for the length of your maternity leave.

i) The head of their department must be informed of maternity leave AT LEAST 3 months in advance.

ii) Upon return to the company, the company will provide a lactation room that will be available at all hours of the day.

Paternity Leave:

All regular male employees who have worked for the company for at least three months are eligible to receive 4-6 weeks of paid paternity leave on the happy occasion of their child. Your position will be guaranteed for the length of your paternity leave.

i) Head of their department must be informed of paternity leave AT LEAST 4 months advance.

Compensatory Off

Compensatory Off or Comp Offs are offs/leaves when an employee works extra for a full day or half day (Half Comp Off) when the office is ‘Off’. Any employee working on a public holiday, weekend (Sunday) or 2nd & 4th Saturday of a month is entitled to a Compensatory Off on a regular working day. Such Compensatory Off needs to be approved first by the immediate manager/ Department head through the HR Software & Email.

Leaves during Probation Period

Employees going through the probation period are not entitled for any type of Paid leaves. After successful completion of the probation period an employee shall become entitled for all paid leaves according to the leave policy of the company.

Leaves during Notice Period

Employees serving a notice period are entitled to consume their Earned leaves balance (if any) other than Earned Leaves no other leaves are applicable during a notice period. Encashing Earned leaves are only applicable at the time of successful completion of 1 year with the company. An employee may take ‘Unpaid leave’ of ‘leave without pay’ within his or her notice period if the reason is legitimate, such as pregnancy or health concerns. Employees are required to successfully serve the notice period and should refrain themselves from taking leaves during this tenure.

"You are most welcomed to put your comments & suggestions for the above. This is not a complete draft. We may have missed few points here and there which you can tell us"

Best Regards

Team HSI

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