Leave Policy in India

Numbers of leaves entitlement in a company depends upon state you are in. Every state has different leave entitlement and leave policies which should be seen before one defines leave policy of your company. Leave policy of a company cannot be less than that mentioned by the State’s shop and establishment act.

Earned Leave

This is a paid leave earned by employees during a year and availed in the subsequent year. If the number of earned leave is over, the day is considered as an unpaid leave and the day’s pay is cut from the salary. These leaves can also be en-cashed while leaving the company. The following are number of earned leaves according to laws:

  • Factory workers need to work minimum 240 days in the organization in a year to be eligible for earned leave. Adults get 1 day for every 20 days, and children, below the age of 15, get 1 day for every 15 days work in the previous year.
  • Mine workers below the ground can avail 1 day for every 15 days work; and those working above the ground can avail 1 day for every 20 days work.
  • Workers in a Bidi or Cigar factory get 1 day leave for every 20 days work in the previous year. If the worker is a child of below age 15, he gets 1 day off for every 15 days of work.
  • People working in sales, and newspaper running company (which includes journalists) can avail one month earned leave for every 11 months of work.
  • Domestic workers are also eligible for 15 days earned leave in a year.

Casual Leave



This is another paid leave that although not earned, is entitled to employees only if prior permission is granted by the organization. If the employer does not grant permission and the employee nevertheless takes a leave, the day’s pay is cut from the salary. Usually every organization allows a certain number of casual leaves in a year, which is fixed by the company’s administration. Although, there is laws for certain types of workers:

  • Sales and newspaper employees (including journalists) are entitled 15 days of casual leave in a year
  • Apprentices are entitled annually 12 days casual leave

Sick/Medical Leave

Employers provide sick leaves to employees when they are ailing. Some organizations ask for a medical certificate to grant sick leave. Others don’t deem in necessary. If the employee has used up all his sick leaves, the company uses his earned leaves. Sick leaves can also be carried forward to the next year. The specifications are although determined by the company’s administration. Laws governing sick leaves for different types of employees are:

  • Apprentices are entitled for 15 days of sick leave in a year. This can be accumulated to a maximum of 40 days.
  • Journalists and Newspaper employees can avail medical leave of one month for every 18 months of work. During the medical leave, the employees are paid half the day’s pay.
  • Sales employees are entitled to medical leave similar to that of newspaper employees. They although mandatorily need to show a medical certificate for their absence.

Maternity Leave

Female employees, as per law, are entitled to 3 months or 12 weeks of leave when she is pregnant. During this time, employers will have to pay their female employees normally.

Paternity Leave

Male employees who are soon to become fathers can avail upto 15 days of leave within 6 months of their wife’s date of delivery.
Apart from these, there are others paid, unpaid or half-paid leaves like Study Leave, Bereavement Leave and Leave for Voting. These although are left at the organization’s discretion.

32 COMMENTS

  1. What are the rights applicable to a private school teacher in Telangana? Every private school management give leaves based on whims and fancies of the owner of the school. Currently schools give a maximum of 1 leave per month, excluding the months which have term holidays. Even during these term holidays teachers are sent out for Campaigning for increasing enrollment. No earned leave, no gratuity, no bonus, etc.

  2. What will be the rule ,if the company employees are all officers and there is no union or no workers ,then what is the minimum leave for earned leave, casual leave and sick leave. Currently there is no limit and company doesn’t allow to take.

  3. Maternity Lease : The applicant can avail Eight weeks leave before the date of delivery and Eighteen weeks leave post delivery. The maximum leave benefit under normal circumstances will be 26 weeks.

  4. Employees working in shops and commercial establishments are entitled to 21 days leave on pro-rata basis in addition to four paid holidays on 26/1, 1/5, 15/8 and 2/10. If any employee is required to work on any of these days, he is entitled to overtime wages @ twice the normal wages and also a compensatory holiday.

  5. As per below point in Earned leave section, there was a case for children, below the age of 15. In India can the children, below the age of 15 work officially? Isn’t it illegal as per labor act?

    “Factory workers need to work minimum 240 days in the organization in a year to be eligible for earned leave. Adults get 1 day for every 20 days, and children, below the age of 15, get 1 day for every 15 days work in the previous year.”

  6. Is Third Party payroll employee eligible for this maternity leave with pay what if the 9th month comes at the last 12th month of contract. Will the employee still eligible for the maternity leave with pay and after this joining in the same organisation.
    Please advice.

  7. if employer does not gives gratuity even after resigning and if employee has not served notice period can he still hold gratuity. if not where and which ngo help us in claiming. employer is from maharashtra state.
    we have still leave encashment to avail,bonus, 15 days salary

    pls reply

  8. Please Inform Leave Rules for a Pvt. Ltd. Factory in Gujarat & also for How many years Privilege leave can be carry forward.

  9. Good Morning
    ” Factory worker need to 240 days working in subsequent year, if join 01 jan. after that 2/3 working days must whole year. one earned leave after 20 days of working. then availed EL. 30 Acc in three years.

  10. CAN THE COMPANY HAS DISALLOW THE PAID LEAVES OF THE EMPLOYEE, EMPLOYEE CAN AVAIL THE PAID LEAVE AFTER LEAVE THE JAOB

  11. details for leaves for hospital staff from the adminstration , Nurses , Doctors and other staff from MAharashtra

  12. Sir, done a good job. It is a awareness to HR people. very fine and much appreciated.
    One more job you can attend. That is, some sr. hr people like me is idle. Because in most of the companies, peoples are recruited not more that the age of 45. So even hr people is having much experience and knowledge, they are not getting opportunities. So you can send mail to all whenever and wherever the opening is find. It will help them much. In some website, more fake advt are giving, so as to collect the resume and to save in their data bank. Hope that you will extend such service to HR FAMILY.
    thanks and regards,
    vijayakumar

  13. Can any body help me in knowing the Leave Rules applicable for the employees of a Medical College (Govt & Private both) ?

  14. OUR COMPANY M/S ICL INTERNATIONAL FREIGHT FORWARDERS LOCATED AT PRAKASH NAGAR BEGUMPET 500016,TELANGANA,INDIA OPP LANE TO OLD AIRPORT WE DONE HAVE CORRECT POLICIES, OUR MANAGEMENT CAN CHANGE THERE LEAVE POLICIES AS THEY LIKE TOTAL WE HAVE ONLY 18 LEAVES ANNUALLY IN THAT ALL INCLUDING LIKE CL,SL & PL SO AND SO

    PLS TAKE ACTION AND HELP US

  15. Hello Sir, I am a full-time employee in a BPO company, working there for the last 10 years, now the company has changed the remuneration system from a fixed salary structure to a target-based compensation, i.e., we have a daily and monthly target and we get salary according to the target met. My question here is, previously whenever we were taking earned leaves or as a matter of fact any leave(s), there was no salary deduction and we used to get leave encashment as well for the unclaimed leaves, but now due to the target system, if I take even a single day of leave and hence miss one day of target, I suffer loss of one day of salary, and if I am sick for say 10 days and despite the fact I have 24 days of earned leaves in my account, I do not get 10 days of salary. So I basically want to know what is the meaning of “earned leaves” in this scenario when I am not getting paid for the leaves as well as no more getting leave enchantment while I am still a full-time employee with the organization. It is same as a daily wages worker, who is getting paid only for the days he has worked. Can an employer really deny paid leaves? Kindly suggest

  16. I know this web site gives quality depending articles or reviews and extra material, is there any other web site which presents such information in quality?

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