What are the 9 different types of leave companies have in India? And what is the basic difference between Casual leave, Paid leave and Sick Leave.

Do you know the types of office leave in India and how to use them? There is a list of leave recognized by companies which you may avail in various situations. Read more below in the article

In India employees working for MNC’S, Corporates and for various medium or small companies are entitled to specific number leave per year apart from general holidays. This leave is in addition to the approved general holidays like Sundays and other National or State level holiday which companies follow according to the guidelines issued in labour laws. India’s Labour laws grants rights to every employee in India to seek leave from its employer in accordance with the leave policy of the organizations.

However, most employees remain confused about the types and nature of these leave and how to utilize them if and when they need to use leave due to certain personal, health or social problems arising during their employment tenure. 

In this article we will discuss some of the common types of leave in India. Their characteristics and when and how to utilize these leave in case of need.

So, what are the most common leave types used in India?

The most common types of leave used in India are listed below

1. Sick Leave (SL)

1.1 What are Sick Leave (SL) or Medical Leaves (ML)

Sick Leave or Medical leave are availed by employees when an he or she is sick and not fit enough to be present itself on workplace due to illness or other medical reasons. Sick leave is given by companies to its sick employee for their speedy recovery and return to good health.

The approved no. of sick leave in a year by companies are paid sick leave.  However additional sick leave taken above the approved number of leave are considered as unpaid leave.

1.2 How many Sick Leave in a year can be taken?

Most companies allow 12 to 15 days of paid sick leave or paid medical leave per year. However, leave may get extended beyond the approved limits set by the company on case-to-case basis in consultation with the management for legitimate sickness submitting relevant medical records. However, such excess leave may not get compensated at all or partially compensated.

1.3 Do Sick Leave carry forward to next year?

Unused sick leave in one calendar year can be carry forwarded to the next year. The numbers unused sick leave that can be accumulated from previous year differ greatly between companies however most companies do allow to accrue a maximum of 30 to 40 sick leave in year.

2. Casual Leave (CL)

2.1 What is Casual Leave (CL)?

Casual leave is taken when an employee seeks leave from workplace due to some personal reasons like travel, family functions, short break or other personal reasons etc.

2.2 How many casual leave are allowed in a year?

Most companies allow 9 to 12 casual leave per year. However, there may be a reasonable restriction on the number of casual leave one can avail in a month. Usually, not more than 1 Casual leave is allowed in one month. Most company follow the rule of 1 casual leave for every 30 to 40 full working days.

 2.3 Do company allow employee to take casual leave?

Casual leave is not regarded as a “subject of right” of an employee to seek casual leave as is the case in Sick leave or Paid leave. Hence it is only approved in case of an unforeseen event or such circumstances that may occur suddenly and may require the employee to be absent at work place in order to deal with such situations.

Companies are generally strict when granting Casual leave to employees and they need to take prior permission from HR or concerned managers.

Casual leave is paid leave. However, some companies put casual leave in unpaid category while other businesses may only allow for half day pay as per their leave policy.

2.4 Does casual leave get forwarded to next year?

Casual leave does not get forwarded to next year and the unused Casual leave expires automatically with end of the year. Casual leave is not entitled for any benefits like encashment or redeeming in exchange for rewards.

3. Paid Leave

3.1 What is Paid Leave?

Paid leave are kind of leave in which the employee may take break from work place due to personal reasons but is still entitled for full day salary for that day.  No salary is deducted in Paid leave. Paid leave are also known as earned leave.

3.2 How many paid leave are allowed in a year?

Most Companies leave policy have provision for 12 to 18 paid leave in a year to the maximum of 20 paid leave however it may differ for various company.

3.3 How are paid leaved calculated?

Most companies calculate paid or earned leave by adding 1.25 or 1.5 leave day per month to employees leave account on successful completion of one month of full service with the company.

3.4 Can paid leave be carry forwarded to the next year?

Unused paid leave in one calendar year do get carried over to the next year. However, most companies limit to a maximum of 30 earned leave can be accumulated and added to the employee leave account as per company leave policy. Unused paid leave can be en-cashed at the end of the year.

3.5 What is paid leave or earned leave encashment?

Leave encashment is a benefit offered by companies in which employees can encash or redeem their unused paid leave or earned leave in exchange for monetary benefits or other rewards at the end of a calendar year. However, most companies have certain limits for how may unused paid leave that can be en-cashed every year.

4. Maternity Leave

4.1 What is Maternity Leave?

Taking care of an expecting mother and its new born child is a very important event in a woman’s lifetime. To Ensure safe delivery of a newborn child and a complete recovery of mother post delivery. Woman employees are granted maternity leave by companies so as too avail the full benefits under paid maternity leave without the worry of their work in office.

Almost all of the MNC’s, Corporate, government organizations and large-scale businesses grant’s Maternity leave to its employees.

4.2 Is maternity leave a paid leave or Do company pay for maternity leave?

This leave is fully paid leave for a period of 26 weeks altogether with 8 to 12 weeks before the date of delivery and 18 to 14 weeks post delivery of child for up to 2 children. All businesses in India shall comply with the maternity leave as per the directives issued under Maternity Benefits (Amendment) Act 2017.

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