Employees leave policies in India combine statutory entitlements mandated by labour laws with policy-based benefits designed by employers. HR professionals, compliance officers, and employees must distinguish between the two to ensure legal compliance and fair workplace practices. This guide explains the major categories of leave, their legal basis, eligibility, and compliance requirements.
1. Earned Leave (EL) – Statutory
- Legal Basis: Occupational Safety, Health and Working Conditions Code, 2020
- Eligibility: 180 days of continuous work
- Accrual: 1 day for every 20 days worked
- Carry Forward: Up to 30 days (varies by state)
- Encashment: Mandatory on separation
Free Compliance Tip: Maintain registers and ensure encashment at exit.
2. Casual Leave (CL) – Policy-Based
- Typical Range: 6-12 days per year
- Purpose: Urgent personal needs
- Carry Forward/Encashment: Not allowed
3. Maternity Leave – Statutory
- Legal Basis: Maternity Benefit Act, 1961 (amended 2017)
- Duration: 26 weeks for first two children; 12 weeks thereafter
- Benefits: Paid leave with job protection
Free Compliance Tip: Employers with 50+ employees must provide crèche facilities.
4. Sick Leave (SL) – Policy-Based
- Typical Range: 6-12 days per year
- Usage: Illness or medical needs
- Documentation: Medical certificate required if absence exceeds 2-3 days
5. Compensatory Off (C-Off) – Policy-Based
- Eligibility: Granted for working on holidays or weekly offs
- Usage Window: Typically, 30-90 days
- Compliance Note: Double wages may apply if compensatory off is not granted.
6. Paternity Leave – Policy-Based (Private Sector)
- Legal Status: No statutory provision under Indian labour laws for private sector employees.
- Government Employees: Central Government service rules allow 15 days of paternity leave within 6 months of childbirth.
- Private Sector: Policy-driven; companies may offer 3-15 days.
- Legislative Attempt: Paternity Benefit Bill, 2019 proposed 15 days (extendable to 3 months), but it has not been enacted.
Conclusion: Paternity leave is statutory only for government employees; private sector provisions are policy-based.
7. Special Leaves (Marriage, Bereavement, Study, etc.) – Policy-Based
- Legal Status: No statutory mandate under Indian labour laws.
- Employer Discretion: Companies may provide marriage leave (3-5 days), bereavement leave (2-7 days), or study leave.
- Best Practice: Document these leaves in HR manuals to avoid ambiguity.
Conclusion: Special leaves are non-statutory and depend entirely on company policy.
8. National & Festival Holidays – Statutory
- Legal Basis: State-specific laws
- Entitlement: 3 national holidays + 5-8 festival holidays
- Compensation: Double pay or compensatory off if employee works on these days
Compliance Matrix
| Leave Type | Statutory | Carry Forward | Encashment |
| Earned Leave | Yes | Yes | Yes |
| Casual Leave | No | No | No |
| Sick Leave | No | Policy Based | Policy Based |
| Maternity Leave | Yes | No | No |
| Paternity Leave | No (Govt. only) | No | No |
| Special Leaves | No | No | No |
| Compensatory Off | Policy | Limited | No |
| Holidays | Yes | No | No |
Final Note: Indian labour law mandates only certain categories of leave. Paternity leave (private sector) and special leaves are not statutory; they remain employer-driven benefits. Clear communication in HR policy documents is essential for compliance and employee trust.
Disclaimer: This article distinguishes between statutory leaves mandated by Indian labour laws (earned leave, maternity leave, national/festival holidays) and policy-based leaves (casual, sick, paternity in private sector, special leaves). Employers should consult applicable state laws and service rules before finalizing leave policies.