Leave Management Policy

Objective

The objective of the Leave Policy is to give provision to the employees to balance their personal as well as professional life. This Company HR Leave Policy sample is also meant to fulfill the statutory requirement regarding leave and holidays. 

Purpose

The purpose of leave policy for employees is to lay guidelines regarding when to avail leave and the process to take leave with pay, leave without pay, Leave of absence policy and so on.

Guidelines

Leave Policy: - A Company HR Leave Policy for Employees

• Leave Authorization: Leave is not an automatic entitlement; it is subject to approval and contingent upon the organization's operational requirements. Unauthorized absences will be subject to disciplinary measures.

• Calendar Year Framework: The accrual and utilization of leave are tracked within the framework of the financial year, running from April to March.

• Leave Records Management: Employee leave records are meticulously maintained through the Human Resource Management System (HRMS).

• Leave Application Protocol: All leave requests are to be formally submitted and approved through the HRMS tool. In exigent circumstances where advance application is infeasible, immediate notification to the respective reporting manager is imperative, followed by formal regularization within 48 hours upon resumption.

• Leave Allocation: Leave entitlement is credited to employees at the commencement of each financial year, specifically in April. Earned Leave accrual takes place on a monthly basis, calculated at a rate of 1 day per month. Pre-existing balances of earned leave from the preceding year are transferred in April.

• Probationary Period Consideration: Eligibility for Earned Leave commences post-successful completion of the probationary period, and leave for the probationary duration is retroactively credited upon confirmation.

• Leave Carry Forward Limit: A maximum of 10 days of earned leave can be carried forward to the succeeding year.

• Leave Application Criteria: Employees may request paid leave contingent upon their leave balance recorded in the HRMS tool. Unpaid leave is admissible only after exhaustion of accrued leave days, subject to approval from the immediate manager, Head of Department (HOD), and People-Ops.

• Partial Leave Entitlement for Mid-Year Starters: Employees joining mid-year will receive leave entitlement on a pro-rata basis, reflecting their period of service.

• Leave Approval Mandate: Employees are prohibited from commencing leave until formal approval is obtained from the respective reporting manager.

• Excessive Absence Protocol: Continuous unapproved absence extending beyond 7 days is deemed voluntary resignation. Progressive disciplinary measures will be instituted, commencing with a First Warning Letter issued upon non-return within 7 days of authorized leave expiration. Subsequent non-response within 3 days of the First Warning Letter triggers the issuance of a Second Warning Letter, culminating in a Final Termination Letter if the employee remains unresponsive. The days of absence will be unpaid.

• Health-Related Leave Communication: In the case of prolonged illness or extended leave, employees must maintain regular communication with their immediate reporting manager, providing updates on their medical condition and anticipated return date. The absence of such communication may result in adverse company action.

• Unapproved Leave Classification: Leave taken without formal approval will be recorded as unpaid leave.

• Treatment of Weekends and Holidays: Weekends and public holidays occurring within sanctioned leave periods are excluded from the total leave count, applicable specifically to casual and earned leave.

• Leave Regularization: In the case of unplanned leave, it is incumbent upon the employee to formalize the leave request within 48 hours of resuming duty.

• Leaves during Notice Period: An employee serving their notice period will not be entitled to avail their leaves to shorten their notice. Their notice will be extended for the same number of working days as number of leaves availed.

Types of Leave

• Casual Leave

• Sick Leaves

• Earned leave

• Maternity Leave

• Paternity Leave

• Leave without pay

• Compensatory off

Casual Leave

• Maximum 6 days of casual leave can be availed by an employee in a year.

• Casual leave is paid leave.

• Employee joining during the course of year will be entitled for casual leave on pro-rata basis.

• Casual leave can be taken for minimum half day and maximum 3 days.

• Casual leave cannot be carried forward to next year.

• Casual leave cannot be clubbed with earned leave or any other type of leave.

• Casual leave should be applied one day in advance and a week in advance when it is applied for more than 2 days.

• Casual leave not availed during the year will lapse at the end of year.

Process for Casual Leave

Casual leave applied by an employee on HRMS tool. For approval the leave notification will reach the immediate reporting manager. Once approved, approval notification will reach to employee and HR. Leave are deducted from leave balance from the employees account and latest balance updated on HRMS tool.

Earned Leave

• Leave application for Earned leave must reach reporting manager 15 days in advance.

• For new joiners joining during the mid of year privilege leave will be credited on pro rata basis.

• For existing employees leaves will be credited in the beginning of the year, entitlement however will be based on number of months worked. For every month completed 1 day of privilege leave will be credited to employees account.

• Privilege leave can be carried forward to next year up to a maximum of 10 days. 

Process for Earned Leave

Employee must apply for earned leave 15 days in advance. Once applied, notification will reach immediate reporting manager. Once approved leave notification will reach employee and HR. Leave balance after deduction will be updated on HRMS.     

Maternity Leave

• All confirmed female employees who have served the company for at least 80 days shall be entitled for Maternity leave as per maternity benefit act 2016, with full pay for a period of continuous 26 weeks (excluding national holidays) for each pregnancy up to a maximum of 2 confinements.

• Leave taken for prenatal treatment for the first 7 months of pregnancy will be considered as normal leave not maternity leave.

• A woman employee can take maternity leave earliest 8 weeks before the expected date of delivery.     

 Process of Maternity Leave

• Before preceding on Maternity Leave it is needed to be applied on HRMS tool and must be approved by the reporting manager.

• The woman employee proceeding on Maternity leave must also submit doctor’s certificate to HR.

Leave in case of adoption of child or birth through surrogacy 

• In case of adoption of child or child birth through surrogacy a woman employee is entitled for 12 weeks of leave.

• These Leaves can be availed on when the child has actually started living with the parents

Process of leave in case of adoption of child or child birth through surrogacy

• In the above mentioned case leave must be applied at least 6 weeks before the date of adoption.

• All legal certificate and required documents must be submitted to HR.

Paternity Leave

• All regular male employees are eligible for paternity leave.

• A maximum of 15 days of paternity leave can be availed by an employee.

• The paternity leave must be taken within 15 days of child birth, failing which the leaves will lapse.

• The leave must be taken at a stretch.

• In case of adoption or surrogacy leave can be taken only if child is actually living with the parents

​Process of Paternity leave

• Paternity leave must be applied at least 15 days before the expected date of delivery.

• Employee can commence for leave from the actual date of delivery.

• The leave must be approved by immediate reporting manager.

  Leave without pay

• An employee can avail leave without pay in case existing leave balance is exhausted and employee is in need of leave due to unforeseen circumstances.

• In case no approval taken for leave without pay, such absence of employee will be considered as Leave of absence from work.

• Disciplinary action will be taken in case of absence without approval.

• No salary would be given to employee for the days leave without pay is availed.

• A maximum of 3 months of leave without pay can be availed by an employee.

• Loss of pay can be availed by an employee by applying on HRMS tool for approval from immediate reporting manager and head of department.

• Once approved by immediate reporting manager and department head, Leave can be availed by employee.

• Leave will be updated as loss of pay on HRMS tool. 

Process for availing leave without pay

• Loss of Pay can be availed by an employee by applying on HRMS tool for approval from immediate reporting manager and head of department.

• Once approved by immediate reporting manager and department head, leave can be availed by employee.

• Leave will be updated as loss of pay on HRMS tool.

Compensatory off

• An employee is eligible for compensatory off when he/she has worked on an important assignment on any of the national/festival/declared off day.

• Approval to work on any such day i.e. national/festival/declared off day must be taken by senior management

• Compensatory off must be availed within a period of 1 month else it will lapse.

Process to avail compensatory loss

Approval of senior management is must for compensatory off. Employee who has worked on national/festival/declared off day can avail leave in lieu of work done on above mentioned days. The day employee is taking compensatory off he/she must inform immediate reporting manager, once approved, it is immediate managers responsibility to inform HR about the same. 

Leave of absence policy:  The leave of absence policy is defined as an unpaid duly approved absence from work for a limited period of time for medical or personal reasons. 

Process of leave of absence policy:

Medical reasons: A request for leave of absence from work must be raised on HRMS tool. The request will reach the immediate supervisor and Head of department for approval. An employee is supposed to take approval from Leave of absence from work at least 20 days in advance when the need for leave is foreseeable. In case of leave of absence from work due to medical reasons a certificate from physician need to be submitted to HR.

 Personal reason: An employee can apply for Leave of absence from work when in need due to some unforeseen reasons. The maximum days of leave of absence  can be applied for six weeks

Cancellation of leave

• Approved leave can be cancelled depending upon the business demand.

• Leave once cancelled by reporting manager an automatic notification will reach to the employee and the HR.

• Leave balance will be updated accordingly by Human Resource.

Extension of leave

• In case of extension of leave due to any unforeseen circumstances the employee must inform reporting manager in advance; once extension of leave is approved by reporting manager it is manager’s duty to inform HR. This is the case when leave extension has been told verbally or over the phone. It is employee responsibility to regularize leave on HRMS tool once employee has resumed back on duty.

• The extended leave must be applied on HRMS tool in case of planned extension so that both the reporting manager and HR are informed automatically.

• Leave balance is updated on HRMS tool by HR.

• In case employee overstays without approval it will be treated as absence from duty and disciplinary action will be taken against the employee.

• Leave extended without permission will be treated as loss of pay.