Leave policy — the template

[COMPANY NAME] — LEAVE POLICY
Effective: [DD Month YYYY] · Applies to: all employees (probationers as noted) · Leave year: [January–December / April–March]

1. Types and entitlement (per leave year, credited [monthly / at start of year])
   a. Earned / privilege leave (EL): [15] days. Accrues at [1.25] days a month; can be carried forward up to [30] days; encashable at exit on basic salary (and annually up to [10] days at the Company's discretion).
   b. Casual leave (CL): [8] days for personal contingencies; maximum [3] at a stretch; lapses at year-end; not encashable.
   c. Sick leave (SL): [7] days; medical certificate for absence beyond [2] consecutive days; carried forward up to [15] days; not encashable.
   d. Maternity leave: 26 weeks for the first two children (12 weeks thereafter), 12 weeks for adoption/commissioning mothers, as per the Maternity Benefit Act 1961 — paid; eligibility 80 days of service in the preceding 12 months.
   e. Paternity leave: [5] working days within [3] months of the birth (Company benefit).
   f. Bereavement leave: [3] days on the death of an immediate family member.
   g. Public holidays: [10] notified holidays as per the annual list published each December, including [Republic Day, Independence Day, Gandhi Jayanti] and [state-mandated holidays].
   h. Compensatory off: for work on a weekly off / holiday with prior approval, to be availed within [30] days.
   i. Leave without pay (LWP): only with written approval when all paid leave is exhausted; counts as loss of pay.

2. Probationers are eligible for CL and SL on a pro-rata basis; EL accrues but may be availed after confirmation.
3. Application: through [HR portal / email to manager] at least [3] working days in advance for planned leave (EL/CL); same day by [10 am] for SL or emergencies. Leave is granted at the manager's discretion, considering work needs.
4. Sandwich rule: weekly offs / holidays falling between two days of leave [are / are not] counted as leave.
5. Half-day leave is permitted for CL and EL. Three late arrivals (beyond [15] minutes) in a month = half-day CL.
6. Unauthorised absence beyond [3] consecutive days without intimation may be treated as misconduct; beyond [10] days as abandonment of service after due notice.
7. Encashment: EL balance at separation is paid on last-drawn basic (+DA), capped at [30] days; tax treatment as per s.10(10AA) equivalent (exempt up to ₹25 lakh for non-government employees).
8. Records: HR maintains the leave register; balances are shown on the payslip/portal monthly. Disputes to be raised within [30] days.
9. Amendments: the Company may amend this policy with [30] days' notice; statutory minimums under the applicable Shops & Establishments Act / Factories Act always prevail.

Acknowledged: ______________________  Date: ________