What are Different Types of Leave for Employees in India?

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Types of Leave
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This blog will cover a brief about types of leave in India for the employees. Whether it is what or how, this article covers them all.


So, after you finally join your aspired company after a long preparation and interview process, there comes perks and contracts. Leave types are definitely one very important factor of attraction. These are very important to have a good work-life balance and retained workforce.


So, types of leave in company are equally important for the owners. Let’s not waste more time and start with the basics.


Leave Policy for Indian Employees

Types of leave and attendance policies depends upon individual states of India and government. Number of leaves and rules must be set by companies themselves abiding the set rules of the state.


A set of privilege leave and other policies are to be provided by company and followed by employees. There is no fixed leave policy for employees in India. The employee only holds the right to know the types of leave provided by their organisation.


Also Read: All You Need to Know About Restricted Holiday


Why a Leave Policy is Important?

Standard leave types and policies helps you assure employees about the benefits and helps them stay engaged. It helps you keep things on paper and pre-defined to avoid disputes/ confusions at last moment.


Keeping such things on website career page or job portals can help attract good number of applicants. People would love to join the company.


Listed Below are 8 Types of Leave in Company

  1. Holidays
  2. Sick Leave
  3. Privilege Leave
  4. Casual Leave
  5. Maternity Leave
  6. Paternity Leave
  7. Compensatory Leave
  8. LOP Day


1. Holidays

These are the mandatory leaves provided by company. They include festivals and other government holidays. Also popularly known as public holidays, which must be followed by companies.


Some of the popular public holidays in India include Independence Day, Holi, Dussehra, or any announced date in memory of death/ birth of renowned people in India. Mandated holidays are one of the types of leaves for employees in India.


India is among countries with the greatest number of public holidays for its employees.


2. Sick leave

Sick leave or SL is one of the most observed types of leaves. And why not? Sick leave is meant for an employee’s recovery and soon return to their work. Sick leave needs to be provided for speedy recovery of people important to the company.


However, it depends on a particular organisation to provide such type of leave or not. With the provision of SL, employees need not worry about their pay cut, as they are paid for the home stay. The number of days for sick leave is set by company itself. It can be anywhere around 10-15 per year.


One of the most underrated leaves in the world.


3. Privilege leave

What is privilege leave? It is also popularly known as Paid leave (PL). Nearly every company provides such types of leaves in India. The number of PL (paid leave) is decided by the company and can be seen in their leave policies.


This can be anywhere around 20-22 per year depending upon companies and their HR. These number of days you are allowed to take an off and enjoy your day without losing pay for day. Thus, the name – Paid leave i.e. earned leave. Employees only need to get the leave approved from the manager to avail.


Popularly known as Paid leave (PL).


4. Casual leave

This is one of those leave types that are meant for resting or casual breaks from work life. Reason of taking a causal leave could be empty i.e. leave can be taken without a reason as well, unlike paid leaves.


Basic reasons for such leaves are religious leaves like Eid, and other minority festivals. Employees here enjoy a paid leave for the day. The number of casual leaves per year is around 3 to 5 that can neither be encashed or carried over next year. This is highly dependent on manager’s approval.


It includes religious leaves like Eid, Easter, and other minority festivals.


5. Maternity leave

A company must make sure to include such type of leave into their policy. From taking care of their new born baby to recovering from pregnancy, women would require a span of 3-4 months.


A company with such types of leave helps ensure employees to be stress free in such conditions. A married female is privileged here with paid leaves for her recovery and taking care of her baby.


This leave can include days anywhere around 14-16 weeks for full recovery. However, it depends upon country and location of company to get the policy.


Estonia, Hungary, and Austria are countries with highest number of maternity leaves to mothers.


6. Paternity leave

Such leaves are not mandated by law and employment rules. While some companies practice a couple of weeks for paternity leave for men or father. A new father or caretaker of child can avail such type of leave without worrying about his pay loss.


This is specially meant to assist a mother in nurturing their new born baby after delivery. Most companies do not observe paternity leave on huge scale, but some do.


Why should women have all the parent perks? #MaternityLeave


7. Compensatory leave

Compensatory leave comes up for companies with overtime management. companies which allow overtime as paid duration also have compensatory leave as one of the types of leaves.


The calculation is made with respect to worked hours at workplace. Extra or less worked hours can be compensated with the pay later during payroll. This helps in maintaining a smooth leave management and flexible working.


Also, instances may occur like flooding or earthquake. At such times, leaves can be provided for the day and compensatory working on any off day could be appointed. Proper time tracking is a must here!


Fix your leave management easily with compensations!


8. LOP day

And here comes Loss of Pay days. These are the types of leaves called by employees after they have fully redeemed their Paid leaves. Generally, there is 40 percent cut on per-day income for each LOP day.


There are never restrictions on leaves taken by employees, conditions loss of pay. Companies must make the leave policies very clear on day 1.


Employees didn’t wish for this one!


Also Read: Government, Public & Bank Holiday List 2023 in India


Ready to Integrate a Leave Management system?

Tracking and calculating leave parameters would not be an easy task. Relying on old traditional methods also is no smart decision. Automated leave management system can help you with easy and quick leave requests from employees and approvals through a unifies platform.


Check out Pocket HRMS business solutions TODAY. Also, follow our recent blogs for learning new HR strategies and HRMS software solutions. Write to us at sales@pockethrms.com for more details.

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