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Leave Policy and Types of Leaves

Why You Need a Leave Policy in Your Company

A leave policy helps you define the number of leaves your employees have, the types of leaves that they are eligible for, and how to apply for leaves. With a leave policy, you can assure them that you will provide them with the essential time off to take care of any issues they have or take time off to vacation, recover from an illness, celebrate their festivals, deal with life events, or simply relax.

Here are 10 types of leaves you need to accommodate within your leave policy:

  1. Sick leave: These leaves are given by the company to allow employees to recover from an illness and take care of their health. These leaves are crucial to allow employees to get the rest they need without worrying about losing pay. Sick leave is a mandatory requirement in many countries to ensure the well-being of the employee. Companies must provide 15 days of sick leave in a year to their employees.
  2. Casual leave: Casual leaves are taken by an employee for travel, vacation, rest, and family events. Giving the employee paid casual leave will allow them to prioritize their private life when required, making them feel appreciated in the company. In most companies, employees can take a maximum of 8-15 days of casual leave in a year.
  3. Public holiday: Public holidays are days that are given as leave by the government. Such holidays must be observed by every institution school, bank, government office, and even private company. Public holidays include Independence Day, Memorial Day, Labor Day, bank holidays, and any nationally-recognized day like the death of a prominent leader of the country.
  4. Religious holidays: religious holidays that they celebrate and would want the day off to spend time with their family and observe the festival. You must accommodate these holidays they have by providing them with the option to take leave on the day of the festival.
  5. Maternity leave: These are provided to the new mother for a period of 7 to 17 weeks, depending on the country in which the company is based. Ideally, 14 weeks is a good amount of time to be given to the mother, allowing them to take care of their newborn for the first 3 months. You should also be open to providing extra leave days in case of any postnatal complications.
  6. Paternity leave: Paternity leave is granted to new fathers, husbands, or partners of a pregnant woman, surrogate parent, or someone who adopted a child to take care of their newborns without any worry. Unlike maternity leaves, new fathers usually get 2 weeks of leave to take care of their child post-delivery. Some countries mandate 1 to 2 weeks of paternity leave for new fathers.
  7. Bereavement leave: Losing a loved one is an unavoidable situation and in such events, employees take sudden leave. As HR, you need to have a bereavement leave policy that provides the employee with the time to grieve their loss, manage any responsibilities they may have due to the death, and allow them to ask for a bereavement leave without any hassle.
  8. Compensatory Leave: Employees who have clocked in more hours than they were required to can be eligible for compensatory days off. Ensure that any employee who has put more time in or come to work on days like Saturday is given a compensatory day off or “comp off”.Compensatory time-off must be automatically recorded within your backend and employees must be informed that they have an extra day of leave for the time they put in.
  9. Sabbatical leaves: Simply put, sabbatical leaves are “a break from work” where employees can pursue interests they have or take time off for physical and mental health reasons. Unlike other leaves, sabbaticals are long leave periods, from six months to a year.
  10. Unpaid Leave: Any leaves taken in the year outside of the paid leaves will result in a pay cut for the employee. Ensure that you’ve made clear the number of leaves the employee has and let them know how much pay is cut per leave day they take outside their eligible leaves.

Leave Policy