What is the Leave Policy?

The prime aim of introducing a leave policy format for employees in your organization is to make sure that an employee is given an agreeable amount of rest and relaxation away from work. The Policy outlines numerous forms of leaves for different circumstances, including sick leave, maternity, vacation, or bereavement. In addition, it outlines the procedures and guidelines while availing of leave, like eligibility, remunerations, and more. Through the Policy, the company conveys its culture and professionalism, reflected through language, tone, and courtesy.

Why you Should Implement Leave Policy?

Employees must take time off to handle personal things, including family gatherings, banking, and other obligations. Employees also require some breaks for travel and holidays, allowing them to relax and reenergize before returning to work.

Paid leaves give employees the necessary support they require in their time of need without worrying about the loss of pay. According to research, an employee-friendly leave policy promotes employee honesty, loyalty, and better productivity.

A comprehensive and detailed leave policy that is consistently followed in an organization demonstrates the business’s professionalism. In addition, the policy promotes employee trust and contentment by establishing clear and concise policy rules. All of these assist you in strengthening your employer’s force.

Types of Leaves

1. Sick Leaves:

Sick leaves can be availed when an employee is not well. Every state sets the permissible leaves allowed in their respective state. You can compensate for your sick leave through your earned leaves.

2. Target Achievement Holiday:

An extra day is given in the following month in which the employee completes his assigned target. The management devises this incentive to reward the efforts put in by the employee in achieving the target.

3. Compensatory Leave:

Compensatory leaves are given to employees to show appreciation for all their hard work, like overtime and going that extra mile for the company.

4. Maternity Leave:

Maternity leave is paid leave that is provided to every female employee, including 12 to 26 weeks.

5. Casual Leave:

Casual leaves are granted to employees when due to some reason, they cannot report to work due to some sudden or personal reasons.

6. Earned leave:

Granted to employees when they have worked for 240 days within the calendar ear.

7. Marriage Leave:

Marriage leave is granted anywhere from 1 to15 day, depending on the company. However, the HR department requires either a marriage certificate or an invitation.

8. Bereavement Leave:

Bereavement leave is taken when an employee has lost someone in their family or friend.

LOP (Loss of Pay)

When no alternative leave is available, an employee may use LOP. The employee is not entitled to any salary or benefits while LOP is in effect. It is assumed that the employee has voluntarily terminated his or her employment with the firm if he or she does not arrive at work on the designated day after the sanctioned LOP. Regardless of the availability of alternative forms of leave, LOP might be used as a justification for discipline by the management for poor attendance.

Guidelines Related to Leave Policy

1. Absenteeism without informing the concerned person will result in disciplinary action.

2. The leave calendar for a year is from January to December. 

 3. There should be a set of guidelines for every kind of employee whose working schedules are different, like half-days, full-time, part-time, work from home, or weekdays.

4. The department head can also cancel the once-sanctioned leave on a situational / need basis. If an employee proceeds to avail of the canceled leave, the regulations governing absence from duty will be in effect on certain days as they will be considered absent from duty.

5. If the active process is changed, so should the leave and attendance management. 

6. If an employee to be relieved has availed more leaves against the number of months he has worked, then the excess leaves will be deducted during his final settlement. No leaves will be adjusted in lieu of cutting short the notice period.

7. An employee cannot go on leave until and unless the manager approves their leave. 

8. If an employee is on leave for more than 7 days without prior information, it is expected (assumed) that the employee has left the company by their own will. 

9. If you take sick leave for more than 2 days, you must submit a medical certificate to your supervisor. 

10. The notice period is when employees shouldn’t take any time off. However, if they do, their notice period will be further extended by the number of leave days taken at their sole discretion and with the permission of their line manager.

How can you Create a Leave Policy Format?

1. A Leave Policy Format Includes the Following points:

2. Purpose and Overall Policy

3. Holiday Calendar 2022

4. Types of Leaves:
1. Casual Leave/ Sick Leave
2. Maternity Leave (ML)
3. Earned Leave
4. Paternity Leave (PL)
5. Compensatory Off
6. Menstrual Leave

5. Loss of Pay (LOP)

6. Procedure for Applying for Leaves

1. Cancellation of Leave
2. Extension of Leave
3. Absence from Duty

Who Can Avail Leaves:

While creating the leave policy, ensure you define the eligibility criteria for the employees where they can avail of their leaves. Employees will be qualified for earned leave once their probationary time is completed. In addition, the Policy should mention the various kinds of leaves, from paid to unpaid.

Number of Employees:

While creating the Policy, keep in mind to design the Policy in a flexible way to make changes if employees add up in the company. During such instances, usually, the policies are changed, and the leave policy is one among them.

Work Procedure:

All leaves are recorded and maintained through HR software. Depending on the amount of leave the employee has remaining on their HRMS tool credit, they may request leave. As an employee, you have a leave balance of paid leaves that you can use throughout the year. If exhausted and require an urgent leave, you can have a conversation with your HOD or manager.

Legal Laws:

Legal laws must be accounted for while forming and structuring any policy. Because of this, there are going to be minimal legal problems. In addition, legal regulations help you identify some crucial leaves that are supposed to be given out, such as 12 to 26 weeks of maternity leave.