Policy templates

Leave policy template (India)

Written to settle the four things that cause every leave dispute: what accrues, what carries forward, what lapses, and how intervening holidays are counted.

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Opens in Excel, Google Sheets, Numbers and LibreOffice — no conversion needed.

Document structure — headings and sections

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The opening of the document. Every bracketed value is meant to be replaced.

# Leave Policy (India) — Template

> Replace every **[bracketed]** value before use. Review against the Shops and
> Establishments Act applicable in each state you operate in. Not legal advice.

## 1. Scope

This policy applies to all employees of **[Company name]** at **[locations]**.
The leave year runs from **[1 January to 31 December]**.

## 2. Leave types and entitlement

| Type | Annual entitlement | Accrual | Carry forward |
|---|---|---|---|
| Earned / privilege leave | **[18 days]** | **[1.5 days per completed month]** | **[Up to 30 days]** |
| Casual leave | **[7 days]** | **[Credited annually]** | **[Lapses]** |
| Sick leave | **[7 days]** | **[Credited annually]** | **[Lapses]** |
| Maternity leave | Per the Maternity Benefit Act, 1961 | — | — |
| Paternity leave | **[5 days]** | — | **[Lapses]** |

Statutory minimums under **[the applicable Act]** override anything less
favourable in this table.

## 3. Applying for leave

- Leave is applied for in advance through **[system]** and requires approval from
  the reporting manager.
- Earned leave of more than **[3 days]** should be applied for at least
  **[7 days]** in advance.
- Sick leave may be applied retrospectively; absence of more than **[2 days]** on
  sick leave requires a medical certificate.

## 4. Leave during notice period

Leave during the notice period requires approval and **[may not be used to
shorten the notice period]**.

## 5. Weekly offs and holidays falling within leave

**[Select one and delete the other:]**

- **Option A — no sandwich rule.** Weekly offs and public holidays falling within
  a period of leave are not counted as leave.
- **Option B — sandwich rule applies.** Where a weekly off or public holiday
  falls between two days of **[unapproved absence / loss of pay]**, it is counted
  as leave. This rule does not apply where the adjacent days are worked.

How to use it

  • Section 5 forces a choice on the sandwich rule. Pick one and delete the other — leaving it ambiguous is what produces disputes.
  • Check your entitlement table against the statutory minimum in each state; the table cannot be less favourable.
  • Comp off has two distinct forms — the statutory substituted holiday and the discretionary credit. Keep them separate in the ledger.

Before you rely on it

Drafting starting point, not legal advice. Leave accrual and carry-forward minimums are statutory; encashment beyond exit settlement is contractual.

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