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Free policy template · Word

Leave Policy for IT Company

An IT company leave policy sets out how software and IT services employees earn, apply for and use leave. Beyond earned, casual and sick leave, it covers IT realities: floating holidays for distributed teams, compensatory off for weekend releases or production support, leave planning around client deliveries and rules for employees deployed at client sites.

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Preview of the policy

[Highlighted] = fill in
[Company Logo][Company Name]

LEAVE POLICY

Company:
[Company Name]
Policy No. / Version:
[Reference Number] / [Version Number]
Effective Date:
[Date]

1. Purpose

To help employees rest and manage personal needs while ensuring project continuity for our clients.

2. Scope

Applies to all full-time employees of [Company Name] in India, including those deployed at client locations. Interns and contract staff follow their engagement terms.

3. Leave Entitlement

Leave TypeDays per YearAccrualCarry Forward / Encashment
Earned / Privilege Leave[Number]MonthlyCarry forward up to [Number] days; encashment as per policy
Casual Leave[Number]Credited [annually / quarterly]Lapses at year end
Sick Leave[Number]Credited annually[Carry forward rule]
Floating Holidays[Number]From approved listLapses at year end
Maternity LeaveAs per law--
Paternity Leave[Number]--
Bereavement Leave[Number]--

4. Holidays

The company declares [Number] fixed holidays and [Number] floating holidays every year, published in December. Employees at client sites may follow the client's site holiday calendar, with any shortfall made up through additional floating holidays.

5. Compensatory Off

  • Employees asked by their manager to work on a weekend or declared holiday for releases, migrations or production support are eligible for one comp-off per full day worked.
  • Comp-off must be requested in the HRMS within [Number] days and availed within [Number] days of the work date.
  • Comp-off cannot be encashed.

6. Procedure

  1. Apply for planned leave on the HRMS at least [Number] working days in advance, and for leave longer than [Number] days, at least [Number] weeks in advance.
  2. Discuss leave with your project manager so sprint plans and client commitments are adjusted.
  3. For unplanned leave, inform your manager before the start of your shift and apply on the HRMS within [Number] days of return.
  4. Sick leave beyond [Number] consecutive days requires a medical certificate.
  5. Leave during declared release blackout periods may be approved only in emergencies.

7. Responsibilities

Employees plan leave responsibly and hand over critical tasks. Managers approve or decline leave within [Number] working days and ensure fair distribution. HR maintains records and resolves disputes.

8. Non-compliance

Unauthorised absence will be treated as leave without pay and may lead to action under the Disciplinary Policy after the employee is heard.

9. Review

HR reviews this policy annually and when laws change.

Approved by
[Authorised Signatory]
[Designation]
Date: [Date]

What this template includes

  • Leave types and annual entitlement
  • Accrual, carry-forward and encashment
  • Floating holidays for regional festivals
  • Comp-off for weekend or holiday work
  • Application and approval through HRMS
  • Client-site and project release considerations
  • Statutory leaves: maternity and others

When to use it

  • Drafting the first formal leave policy for a growing IT firm
  • Aligning leave rules after the Labour Codes came into force
  • Adding comp-off and floating holiday rules
  • Harmonising leave across multiple office locations

How to customise this template

  1. 1Fill in day counts per leave type for your state
  2. 2Set carry-forward and encashment caps
  3. 3Define comp-off validity period
  4. 4Insert your floating holiday list
  5. 5Specify blackout periods for releases if any

HR tips

  • Check state Shops and Establishments minimums before fixing numbers
  • Encourage leave planning in sprint calendars
  • Do not cancel approved leave without strong reason and compensation
  • Show leave balances clearly in the HRMS

This policy is a starting point. Review entitlements against the Labour Codes, your state's Shops and Establishments rules, maternity benefit law and with a legal adviser before adoption.

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Frequently asked questions

How much earned leave do IT employees get?+

It depends on company policy and the state's Shops and Establishments rules, which set minimums. Many IT companies offer 15 to 24 days of earned or privilege leave a year.

What is comp-off in IT companies?+

Compensatory off is a day off given in exchange for working on a weekend or holiday, usually to be used within a fixed period.

Do employees at client sites follow client holidays?+

Often they follow the client's holiday calendar for that site, with the company ensuring the total holidays are not fewer than its own policy.

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