Casual Leave

Every country has numerous leave guidelines based on their government policy for the wellness of employees. India is on to it as well. In India, there are several private and public companies with several leave policies like sick leaves, casual leaves, maternity, paternity, and many more.


One of them is the Casual Leave policy. It is also named a privileged leaves policy where employees can enjoy paid annual leave which can be applied for any casual reasons. Employees can have it on any day, at any time, and use it for their personal matters.


Though the Shops and Establishment Act states that casual leaves are varied state-wise, employees can take casual leave for a short duration.


Casual leaves can be availed after the probation period. During the notice period, the employee cannot take the casual or paid leaves


What is Casual Leave?


In every organization, employees get some leave options where they do not have to provide any reason to the higher authority for asking for leaves. They can take leaves for any reason or emergencies at any day any time. But as per the casual leave policy, only a few days are available for the vacation.


In the case of taking casual leaves, employers have to be careful about the amount of leaves employees take as paid casual leave.


With respect to the Indian leave policy or other factory acts employers can allow up to 3 privilege leaves to an employee in one month. No salary cut is taken from employees for the leave entitlement.


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1. Casual leaves Rules, How much-paid leave can a company grant?


Some most important casual leave rules that need to be learned or remembered by employers. It should be within the company’s leave policies and countable for the organization’s entire calendar year are the following.


  • Casual Leave can not be carried forward to the next year or the following years.


  • Once it becomes unusable can’t be redeemed at the end of the year.


  • If the organization is under the Shops and establishment act, employees can enjoy up to 6 days of CL.


  • Employees can avail of half a day and a maximum of three days’ leave simultaneously. Taking a few days as privileged leave, they must acquire permission from the firm.


  • Casual leave can not be mixed with sick leaves or other paid leaves.


  • Casual leaves or paid leaves will be allotted for the employees who are in the probation period or notice period. ( Let’s take an example of employees who joined on 1st September or just half of the financial year they will get half of the casual leaves.


➔ How much-paid leave can a company grant?


As per the factories act 1948, each worker or employee can avail of a minimum of 12 working days of paid leaves of at least 240 working days per calendar year wise. For under-adult and teenage employees, time duration of casual leave varies.


2. Is casual leave paid?


The pay scenario of casual leave varies between countries. In India, whether casual leave is paid or not depends on the company’s policies and practices. As per the rules and policies companies have to pay for a minimum of 12 working days of paid leaves to the employees who have worked a minimum of 240 working days.


3. Types of office leave in India


In India, the concept of “leave” may vary slightly from one organization to another, and the names of specific types of casual leaves can differ as well. However, in general, the following are some common types of casual leaves that companies may offer to their employees:


➔ Casual Leave (CL)

This is the standard form of casual leave provided by most companies. It is intended for short-term absences, typically for one or a few days, due to personal reasons, emergencies, or unforeseen situations.


➔ Restricted Holiday (RH) or Special Casual Leave


Some organizations provide additional casual leave under different names, such as Restricted Holiday or Special Casual Leave.


These leaves are often granted on specific occasions, festivals festivals holidays like independence day republic day, or events, and employees can use them for celebrating religious or cultural festivals or other personal preferences not covered by regular holidays.


➔ Privilege Leave (PL) or Earned Leave (EL)


While earned leaves are not exactly casual leave, some companies merge casual leave and earned leave into a single leave category. In such cases, employees may be allowed to use a portion of their earned leave as casual leave.


➔ Sick Leave


Though not categorized as casual leave, sick leave is another important type of leave that employees are entitled to. It is used when an employee is unable to work due to illness or medical reasons.


In this case, employees do have not to submit leave applications prior to taking the leave. Employees can take it accidentally.


4. Benefits of having Casual leave in the workplace


Having a casual leave policy in the workplace offers several benefits to both employees and employers. Here are some advantages of having casual leave:


➔ Flexibility for Employees


Employees can enjoy flexible take time off for unexpected personal or family emergencies, urgent matters, or short-term personal commitments using casual leaves. It helps employees maintain a healthy work-life balance and reduces stress and burnout.


➔ Improved Morale and Motivation


If the employees get sufficient leaves from an organization, employees feel more valued and supported by their employers. This can lead to improved employee morale and motivation, resulting in increased productivity and job satisfaction.


➔ Reduced Absenteeism


By providing a designated leave for unplanned or immediate needs, casual leave can help reduce unscheduled absenteeism. When employees get the proper channel to take time off, they are less likely to resort to unauthorized absences.


➔ Better Attendance Management


Having a formal casual leave policy allows employers to track and manage employee attendance effectively. This helps in identifying attendance patterns, addressing chronic absenteeism, and maintaining workforce efficiency.


➔ Enhanced Workforce Productivity

Encouraging employees to take time off when needed helps them recharge and rejuvenate. As a result, they are likely to return to work with renewed energy and focus, leading to increased productivity and creativity.


➔ Employee Well-being and Health


Casual leave promotes employee well-being by allowing them to take care of their health or attend medical appointments without worrying about their job security.


➔ Compliance with Labor Laws


Providing casual leave ensures that the company complies with labour laws and regulations that may require employers to grant a certain number of leave days to their employees.


➔ Reduction in Unscheduled Leave Requests


Without a designated casual leave policy, employees might resort to using other types of leaves, such as sick leave or earned leave, for unplanned absences. Having specific casual leave reduces the misuse of other leave categories.


➔ Positive Employer-Employee Relations


Offering casual leave demonstrates that the employer cares about the well-being of their employees, leading to a more positive employer-employee relationship.


➔ Attracting and Retaining Talent


Competitive leave policies, including casual leave, can help attract and retain skilled employees. It becomes an essential aspect of the overall employee benefits package offered by the company.


Overall, having a casual leave policy is beneficial for both employers and employees as it promotes a healthy work environment, fosters a positive company culture, and supports employee well-being and work-life balance.


5. What are the Differences Between Casual Leave, Privilege Leave? (table-wise)


Casual leave Privilege leave
Casual leave is typically granted for short-term absences, usually for one or a few days, due to personal reasons, emergencies, or unforeseen situations. Privilege leave and earned leave are often used interchangeably. Here monthly leaves have to be taken within the dedicated month.
Casual leave may or may not be paid, depending on the company’s policies. Privilege leave is generally paid, and the number of days earned depends on the length of service and company policies.


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