Free policy template · Word

Leave Policy

A leave policy is the company document that sets out every type of leave employees can take, how much accrues, how to apply and get approval, and what happens to unused leave. It must be aligned with the applicable Shops & Establishments or factory rules, the Labour Codes and maternity benefit law.

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[Company Logo][Company Name]

LEAVE POLICY

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

1. Purpose

This policy sets out the types of leave available to employees of [Company Name], how leave is earned, applied for and approved, and how unused leave is treated, so that employees can rest and attend to personal needs while business continuity is maintained.

2. Scope

This policy applies to all employees on the rolls of the company at all locations, including probationers, unless their appointment letter states otherwise. Where state laws, standing orders or settlements provide more favourable terms, those terms will prevail.

3. Definitions

Leave year: [1 January to 31 December / 1 April to 31 March].
Working day: a day on which the employee is scheduled to work, excluding weekly offs and declared holidays.
Sanctioning authority: the person authorised to approve leave under the leave approval matrix.

4. Types of Leave and Entitlement

Leave Type	Entitlement per Year	Accrual	Carry Forward	Encashment
Earned / Privilege Leave	[Number] days	[Monthly / As per days worked]	Up to [Number] days	[Yes – as per clause 7]
Casual Leave	[Number] days	[Credited at start of year / pro-rata]	[Lapses at year-end]	No
Sick Leave	[Number] days	[Credited at start of year / pro-rata]	Up to [Number] days	No
Maternity Leave	As per applicable maternity benefit law	–	–	–
Paternity / Adoption Leave	[Number] days	–	No	No
Bereavement / Marriage / Special Leave	[Number] days	–	No	No

Maternity benefit will be provided as per the law applicable to the establishment (the Maternity Benefit Act, 1961 provisions, now part of the Code on Social Security, 2020), including leave for adoptive and commissioning mothers, and protection against dismissal during maternity leave.

5. Holidays and Weekly Offs

The company will publish an annual holiday list of [Number] holidays, including national holidays, as required under applicable state rules. Weekly offs and holidays falling within a period of earned leave will be [counted / not counted] as leave. Restricted holidays: employees may choose [Number] from the published list.

6. Procedure

Planned leave must be applied for at least [Number] working days in advance through [HRMS / leave application form].
Unplanned leave must be informed to the reporting manager before the start of the working day or shift and regularised within [Number] days of return.
Sick leave exceeding [Number] consecutive days requires a medical certificate; a fitness certificate may be required before rejoining.
Leave is sanctioned by the authority in the leave approval matrix. Leave cannot be claimed as of right; however, sanction will not be unreasonably refused.
Extension of leave must be applied for before the sanctioned leave ends.

7. Carry Forward, Lapse and Encashment

Unused earned leave up to [Number] days may be carried forward; the balance above this limit will [lapse / be encashed]. Earned leave may be encashed [once a year up to Number days / at separation] at [Basic Salary + DA] ÷ [Number] per day. Casual and sick leave are not encashable.

8. Leave Without Pay and Unauthorised Absence

Leave without pay may be sanctioned at management discretion after paid leave is exhausted. Absence without sanction or intimation will be treated as unauthorised; the employee will be given an opportunity to explain before any action is taken under the company's disciplinary procedure or standing orders.

9. Responsibilities

Employees: plan leave, apply on time, hand over work and keep balances in view.
Managers: decide fairly and promptly, plan cover and avoid discouraging legitimate leave.
HR: maintain the leave register, communicate balances, and ensure compliance with applicable laws.

10. Non-compliance

Misuse of leave, including false medical certificates, may lead to disciplinary action following due process.

11. Review

HR will review this policy every [12] months or earlier when laws or business needs change. Approved by [Authorised Signatory] on [Date].

Approved by
[Authorised Signatory]
[Designation]

Policy Owner
[HR Name]
HR Department

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What this template includes

Purpose, scope and leave year definition
Leave types with entitlement placeholders, accrual and eligibility
Carry-forward, lapse and encashment rules
Application, approval and documentation procedure
Holidays, weekly offs and how they interact with leave
Maternity, paternity and adoption provisions
Unauthorised absence, responsibilities and review

When to use it

Setting up HR policies for a new company or a new state location
Replacing informal practice with written rules
Reviewing leave terms after the Labour Codes came into force
Harmonising leave after a merger or across offices in different states

How to customise this template

1Enter entitlements after checking the minimum required by your state rules and the Labour Codes as notified
2Choose a calendar or financial leave year
3Decide on encashment and carry-forward caps
4Add state-specific annexures for multi-state companies
5Have the draft reviewed by a legal adviser before rollout

HR tips

Never set entitlements below statutory minimums applicable to you
Communicate the policy to all staff and record acknowledgement
Apply rules consistently; exceptions should be documented
Review the policy at least annually and whenever laws change

This template is a starting point only. Review it against applicable labour laws, the relevant state Shops & Establishments or Factories rules, the Labour Codes and their rules as notified, your standing orders and leave policy, and take legal advice where needed.

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Frequently asked questions

What should a leave policy include?+

Leave types and entitlements, eligibility and accrual, application and approval process, carry-forward and encashment, holidays, special leave such as maternity, handling of unauthorised absence and policy review.

How many leaves are mandatory in India?+

Minimum leave depends on the law applicable to your establishment, such as state Shops & Establishments Acts, factory rules and the Labour Codes as notified. Check them for your location; this template uses placeholders.

Is maternity leave part of the leave policy?+

Yes, the policy should describe maternity benefit in line with the law, now part of the Code on Social Security, 2020, along with any additional company benefits.

Do Labour Codes change leave policy?+

India's four Labour Codes came into force from 21 November 2025, with rules being notified by the Centre and states. Review your leave policy against the applicable code and rules.

All 50 leave management →

[Company Logo][Company Name]

LEAVE APPLICATION FORM

Company:: [Company Name]
Form No.:: [Reference Number]
Date of Application:: [Date]

Part A – Employee Details

Employee Name
Employee ID
Designation
Department
Reporting Manager
Work Location
Mobile Number

Part B – Leave Details

Type of Leave	[ ] Casual [ ] Sick [ ] Earned/Privilege [ ] Compensatory Off [ ] Leave Without Pay [ ] Other: [Specify]
From Date (DD/MM/YYYY)
To Date (DD/MM/YYYY)
Number of Working Days
Half Day	[ ] First Half [ ] Second Half [ ] Not Applicable
Reason for Leave
Address and Phone Number During Leave

Part C – Work Handover

Form · Word

Leave Application Form

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[Company Logo][Company Name]
LEAVE REQUEST FORM
Company:
[Company Name]
Request Date:
[Date]
Employee
Name [Employee Name]
Employee ID [Employee ID]
Team / Department [Department]
Shift (if applicable)
Manager [Reporting Manager]
Leave Requested
Leave Code From (DD/MM/YYYY) To (DD/MM/YYYY) Total Days
[CL/SL/EL/CO/LWP] [DD/MM/YYYY] [DD/MM/YYYY] [Number]
[Leave Code] [DD/MM/YYYY] [DD/MM/YYYY] [Number]
Purpose (brief)
Reachable on (phone / email)
Form · Word
Leave Request Form
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Form · Word
Leave Approval Form
Download .docx
[Company Logo][Company Name]
LEAVE APPLICATION – NOT APPROVED
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]
Subject: Your Leave Application dated [Date] for [DD/MM/YYYY] to [DD/MM/YYYY]
Dear [Employee Name],
Thank you for submitting your application for [Number] days of [Leave Type] from [DD/MM/YYYY] to [DD/MM/YYYY]. We have reviewed it carefully along with the team schedule for that period.
We regret that we are unable to approve the leave for these dates for the following reason:
Letter · Word
Leave Rejection Letter
Download .docx

Name	[Employee Name]
Employee ID	[Employee ID]
Team / Department	[Department]
Shift (if applicable)
Manager	[Reporting Manager]

Leave Code	From (DD/MM/YYYY)	To (DD/MM/YYYY)	Total Days
[CL/SL/EL/CO/LWP]	[DD/MM/YYYY]	[DD/MM/YYYY]	[Number]
[Leave Code]	[DD/MM/YYYY]	[DD/MM/YYYY]	[Number]

Purpose (brief)
Reachable on (phone / email)

Leave Type Applied
Period Applied: From [DD/MM/YYYY] To [DD/MM/YYYY]
Days Applied

[Company Logo][Company Name]

REQUEST FOR CANCELLATION OF SANCTIONED LEAVE

Date:: [Date]

To,
[Reporting Manager]
[Designation]
[Department], [Company Name]

Subject: Request to Cancel Sanctioned Leave – Ref. [Reference Number]

Dear [Reporting Manager],

My application for [Leave Type] from [DD/MM/YYYY] to [DD/MM/YYYY] ([Number] days) was sanctioned on [Date] vide reference [Reference Number]. Due to [brief reason, e.g. change in family plans / completion of personal work earlier than expected], I would like to withdraw this leave as below:

[ ] Full cancellation – I will be on duty for the entire period
[ ] Partial cancellation – I will report for duty from [DD/MM/YYYY]; leave from [DD/MM/YYYY] to [DD/MM/YYYY] will continue
Number of days to be cancelled	[Number]

Letter · Word

Leave Cancellation Request

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[Company Logo][Company Name]

APPROVAL OF LEAVE CANCELLATION

Ref. No.:: [Reference Number]
Date:: [Date]

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]

Subject: Approval of Cancellation of Leave Sanctioned vide Ref. [Reference Number]

Dear [Employee Name],

This refers to your request dated [Date] to cancel the [Leave Type] sanctioned to you from [DD/MM/YYYY] to [DD/MM/YYYY]. Based on confirmation from [Reporting Manager] that you reported for duty on [DD/MM/YYYY], your request has been approved as follows:

Particulars	Details
Leave originally sanctioned	[Number] days ([DD/MM/YYYY] to [DD/MM/YYYY])
Leave cancelled	[Number] days ([DD/MM/YYYY] to [DD/MM/YYYY])
Leave availed (if partial)	[Number] days
Leave head re-credited	[Leave Type]
Revised balance	[Number] days

Letter · Word

Leave Cancellation Approval

Download .docx

[Company Logo][Company Name]

LEAVE BALANCE STATEMENT

Company:: [Company Name]
Statement Period:: [DD/MM/YYYY] to [DD/MM/YYYY]
Issued On:: [Date]

Employee Name	[Employee Name]
Employee ID	[Employee ID]
Designation	[Designation]
Department	[Department]
Date of Joining	[Date of Joining]

A. Summary by Leave Type

Leave Type	Opening Balance	Credited	Availed	Lapsed	Encashed	Closing Balance
Casual Leave	[Number]	[Number]	[Number]	[Number]	[Number]	[Number]
Sick Leave	[Number]	[Number]	[Number]	[Number]	[Number]	[Number]
Earned / Privilege Leave	[Number]	[Number]	[Number]	[Number]	[Number]	[Number]
Compensatory Off	[Number]	[Number]	[Number]	[Number]	[Number]	[Number]

B. Leave Availed During the Period

Sl. No.	From	To	Days	Leave Type	Approval Ref.
1	[DD/MM/YYYY]	[DD/MM/YYYY]	[Number]	[Leave Type]	[Reference Number]
2	[DD/MM/YYYY]	[DD/MM/YYYY]	[Number]	[Leave Type]	[Reference Number]
3	[DD/MM/YYYY]	[DD/MM/YYYY]	[Number]	[Leave Type]	[Reference Number]

Report · Word

Leave Balance Statement

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[Company Logo][Company Name]

LEAVE REGISTER

Name of Establishment:: [Company Name]
Address:: [Company Address]
Leave Year:: [YYYY]

Employee Name	[Employee Name]
Employee ID / Token No.	[Employee ID]
Father's / Spouse's Name
Designation	[Designation]
Department	[Department]
Date of Joining	[Date of Joining]

Opening Position

Leave Type	Balance Brought Forward	Credit for the Year	Total Available
Earned / Privilege Leave	[Number]	[Number]	[Number]
Casual Leave	[Number]	[Number]	[Number]
Sick Leave	[Number]	[Number]	[Number]

Leave Entries

Sl.	Date of Application	Leave Type	From	To	Days	Balance After	Sanctioned By	Remarks
1	[DD/MM/YYYY]	[Leave Type]	[DD/MM/YYYY]	[DD/MM/YYYY]	[Number]	[Number]	[Initials]	[Remarks]
2	[DD/MM/YYYY]	[Leave Type]	[DD/MM/YYYY]	[DD/MM/YYYY]	[Number]	[Number]	[Initials]	[Remarks]
3	[DD/MM/YYYY]	[Leave Type]	[DD/MM/YYYY]	[DD/MM/YYYY]	[Number]	[Number]	[Initials]	[Remarks]
4	[DD/MM/YYYY]	[Leave Without Pay]	[DD/MM/YYYY]	[DD/MM/YYYY]	[Number]	[Number]	[Initials]	[Remarks]

Leave Register

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Leave Policy

Preview of the policy

1. Purpose

2. Scope

3. Definitions

4. Types of Leave and Entitlement

5. Holidays and Weekly Offs

6. Procedure

7. Carry Forward, Lapse and Encashment

8. Leave Without Pay and Unauthorised Absence

9. Responsibilities

10. Non-compliance

11. Review

What this template includes

When to use it

How to customise this template

HR tips

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Frequently asked questions

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