Basic Information about Employment Leave Policy

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Employees of public and private sector companies are entitled to certain types and specific numbers of leaves per year apart from the holidays and days off. These leaves help them to maintain a proper work-life balance.

The type and number of leaves are based on the employer and industry type you serve in. In India, every state has their own leave policies and leave entitlement. Generally, there are two types of leaves which employee can apply for.

  • Unpaid Leave

Loss of Pay (LOP)

When an employee goes on ‘leave’ without senior’s permission, then the company considers this as ‘loss of pay’ leave even if you have leaves in your account. The company can consider this as LOP because employee did not inform about his leave to the department / HOD.

Leave without Pay (LWP)

When you inform your reporting manager about your leave through phone call or a message and don’t have leave credit in your account, then this leave can be considered as ‘leave without pay (LWP)’.

Leave without pay (LWP) and loss of pay (LOP) both are quite similar. Please note that LWP and LOP is how an organisation treats that according their corporate policy. Policy concepts change from employer to employer.

  • Paid Leave (Sick Leave, Privilege Leave, Casual Leave, etc.)

Paid leaves are allocated by the employer and when an employee applies for a leave, then leave allocated to him is deducted. Paid leaves don’t have any impact on the salary slip of an employee.

Sick leave is offered when employee falls sick.

Privilege leave is provided for planned long leaves for the purpose of marriage, vacation, etc.

Casual leave is offered when an employee needs to take care of family emergencies.

Maternity leave is especially available for those women employees who plan to have a baby. No deductions can be made from the leave account of the female employee.

Permanent full time employees are eligible to apply for any type of leave and take approval, except in scenarios where approval could not be taken in advance usually for sick leaves. But, there is no specific set of rules mentioned for which leaves to be approved or rejected. It all depends on the manager and reasons.

Temporary or part-time (less than half-time) employees are not eligible for leave without pay.

As there are different types of leaves to track, so HR can take help of online leave management software for smooth payroll processing. Contact Pocket HRMS to streamline and automate leave management process!

Find out basic information about employment leave policy at your workplace now!


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