Leave Policy Format


Editor - CoolAvenues Nov 12,2013

Different companies use different leave Policy. This format is useful for MBA students and HR Professionals.

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PURPOSE:To communicate the leave policy to all concerned employees of XYZ Co.. POLICY STATEMENT & OBJECTIVE:This policy encourages its employees to take a break from work as this provides for healthy, stress free and more productive staff. The leave policy sets out the various types of leaves that an employee is eligible for and outlines the procedure for taking leave. PROCEDURES AND RULES:Every employee will be entitled for the following leaves. Privilege Leave (P/L) : Sick Leave (S/L) Casual Leave (C/L) Public Holidays : : : 12 days per year 6 days per year 6 days per year As declared by the company at the beginning of every year.
Leave Year & Applicability: 1. Leave year is as per the calendar year (1st January - 31st December) 2. The different types of leaves covered under this policy are:    Privilege Leave Sick Leave Casual Leave
3. The policy is applicable for all permanent employees. 4. During the probation period no leave will be credited to employees 5. This policy is not applicable to contract employees engaged with the company. For such employees, the leave will be in accordance to the individual contract signed with the company. 6. All leaves should be approved by the manager on mail.
PRIVILEGE /EARNED LEAVE (12 DAYS):This is designed to give the employees vacation periods for rest and relaxation and to provide time off for personal needs. a. Eligibility   All permanent employees are eligible to avail privilege leave Privilege leave is calculated for a period of one calendar year (1st Jan-31st Dec)
b. Entitlement 12 days privilege leave P.A is allowed to each employee. Out of 12 days leave credited for the year, any un-availed paid leave in excess of 10 days at the end of the year will lapse automatically. c. Norms     Holidays and weekly off may be prefixed or suffixed The minimum unit of availing Privilege leave would be 3 days. Privilege leave can be granted twice in a year. Any balance privilege leave can be used as casual leave.
d. Encashment  If leave accrued during a year is not fully availed within the year, up to 10 days of unavailed leave can be carried forward, the remaining leaves will lapse at the end of the year. Accumulated leave balance can be en-cashed only as part of the full & final settlement at the basic pay.

e. Procedure  All the employees are required to apply for leave (casual/privilege) on mail to their manager’s at least a week in advance for approval to their respective manager stating when he/she intends to take leave. Once leave is approved by the manager on mail, he /she needs to forward the mail to the HR department for record.

CASUAL LEAVE (6 DAYS):CL may be used by an employee for any purpose.
a. Eligibility   All permanent employees are eligible to avail privilege leave Casual leave is calculated for a period of one calendar year (1st Jan-31st Dec)
b. Entitlement 6 days casual leave is allowed to each employee each year. c. Norms    A minimum of half CL can be availed & a maximum of 3 days in a row can be taken. If CL extends beyond 3 days, then the excess days taken will be treated under PL. When leave is taken without prior sanction (under certain unavoidable circumstances), the absence should be notified to his/her reporting manager on the same day through phone, sms or via email. A copy of the leave approved on mail should be sent to HR dept within two days.

d. Encashment Casual leave cannot be accumulated, en-cashed or carried forward to the next calendar year. SICK LEAVE (6 DAYS):Sick Leave may be used when the employees:   Receive medical, dental or optical treatment Are incapacitated by physical illness, injury etc
a. Eligibility   All permanent employees are eligible to avail Sick Leave. Sick leave is calculated for a period of one calendar year (1st January-31st Dec)
b. Entitlement   6 days sick leave is entitled to each employee in a year. A minimum of half SL can be availed & a maximum of 3 days in a row can be taken.
c. Norms
Any sick Leave taken for more than 2 days at a stretch has to be supported by a Medical Certificate.       If an employee is sick for a period of more than three days at a stretch, then his sick leave will not be offset against the privilege leave balance if the reporting authority approves it. The decision will lie with the reporting authority. Employee will have to provide a medical certificate for the same. If an employee falls sick, he /she should is expected to inform via telephone call, email or sms to the concerned reporting authority about his/ her absence. Once an employee recovers and joins back work, he/she must inform about the no. of days of sick leave via email, for record to HR. Sick leave cannot be prefixed or suffixed with PL or CL.
d. Encashment Sick leave cannot be accumulated or en-cashed or carried forward to the next calendar year. MATERNITY LEAVE (ML):a. Eligibility Maternity Leave shall be available to all female staff of the company in accordance with the law as applicable from time to time. b. Entitlement   Female employees, who have worked for at least one year, are entitled to Maternity Leave (ML). In case of miscarriage or medical termination of pregnancy, four weeks leave with pay from the date of miscarriage is permitted and upon production of satisfactory evidence by way of Physician’s letter must be presented upon rejoining.
c. Norms    Maternity leave is to be applied for in advance and supplemented with physician's letter documenting the need for leave. The company will provide a total of 12 weeks (84 days) as maternity leave with pay, of which not more than 6 weeks (42 days) should precede the expected date of delivery. The employee must provide a Certificate of Fitness from the Doctor at the time of returning to service.

Extension of leave beyond regular maternity leave entitlement will be adjusted against accumulated leave balance, or treated as leave without pay. This is also subject to the approval of the concerned reporting authority.
General Rules:1. Leave should be planned in such a way that it does not affect - productivity or while on a project does not affect the project work/delivery deadline. 2. An employee shall be entitled to leave subject to the application being approved by the reporting officer. The reporting officer shall be the competent authority for approving leaves under this policy. However, for maternity leave the HoD shall be the competent authority to approve the leave. 3. The Employee should check the Leave balance before applying for the same.