Home Resource Centre 8 Of The Most Common Types Of Leave In A Company

Table of content:

Types Of Leave In A Company In India
Public and Religious Holidays
The Company Leave Policy
Frequently Asked Questions

8 Of The Most Common Types Of Leave In A Company

Different types of leave exist in a company to help employees maintain a healthy and proper work-life balance. Read about the types, their duration, and differences here.

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8 Of The Most Common Types Of Leave In A Company

Every employee has the right to take time off from work. Employment laws mandate a specific number of leaves for full-time employees and companies have to adhere to these laws.

In fact, there exist different types of leave in a company to help employees fulfill their personal tasks along with official work and maintain a healthy and proper work-life balance.

Apart from regularly approved leaves, companies also offer paid time off work for national holidays and religious festivals. The exact number and types of leaves offered to employees differ from company to company and even industry to industry.

Types Of Leave In A Company In India

Most companies in India offer the three most common types of leaves, namely casual leave, sick leave and privilege leave. Apart from these three types of leave, companies are also obligated by law to provide maternity leave. Most organizations, though not all, also have a policy for providing leaves for significant life events, like marriage.

Let's take a look at the most common types of leave in a company, in India;

1. Casual Leaves

Casual leaves are unplanned, paid leaves employees can take due to unforeseen and unavoidable circumstances. Employees can request this time off at short notice and it's not mandatory to provide a reason for taking casual leave. Employees avail of this leave for personal reasons, like taking care of an ailing family member or recovering from an accident, etc.

Casual leaves are further divided into two different types: Half-Day Leaves and One-Day Leaves. The former is for personal matters that only require limited time off work - like completing a household chore or bank work.

Usually, 7 days of casual leave are provided during a calendar year. An employee can apply for a maximum duration of three days of casual leave. Usually, unused casual leaves can not be encashed, transferred, or accrued. They may, however, be converted into privileged leaves.

2. Privilege Leaves

Privilege leaves, also known as earned leave or annual leaves are long-term leaves that employees are entitled to take, but only after completing certain days or months of services. Most companies in India provide 18 days of privileged leave to employees. Annual leave balances can be carried over to the next calendar year and even encashed at the end of the year.

3. Sick Leaves/Medical Leave

These are leaves taken for medical reasons, such as time taken off work to recover from a viral fever. The duration of a sick leave depends on the nature of the employee's medical condition. For example, a severe ailment may require employees to take longer time off. On the other hand, employees may only take two to three days off work to deal with minor injury or infection.

4. Maternity and Paternity Leaves

Most companies give new parents the option to take extended time off work to take care of their newborn child. These are maternity leaves (for mothers) and paternity leaves (for fathers). They're paid leaves.

The employment laws in most countries mandate a specific period of maternity leave. For example, per the Indian Maternity Benefit Act, it is mandatory for companies to provide 6 months of paid maternity leave. But, per the EU legislation, European countries are mandated to offer a minimum of 14 weeks of maternity leave.

Employment laws specify the minimum period of leave that companies have to adhere to. However, private companies may increase the duration or offer other benefits.

5. Sabbatical Leave

Sabbatical leave is another form of long-term leave that employees can take. This is a long-term unpaid leave from work, usually lasting for 6 months or more. Though employees are not paid during a sabbatical, they can rejoin the office at the end of the sabbatical period. Thus employees have job security.

Employees may take a sabbatical leave to pursue educational advancement, for upskilling, or for personal reasons - like a health crisis. A sabbatical, thus, is a short career break.

6. Bereavement Leave

Employees who face death in the family or in their close, personal circle are entitled to take bereavement leave. This is usually a short-term leave, lasting anywhere between 3 to 7 days. However, employees may request extended time off if it's a close, personal loss.

Bereavement leaves are also referred to as compassionate leaves. This is because these are not mandatory leaves. Rather, they are provided on compassionate grounds.

7. Marriage Leave

An employee can apply for a leave to attend a wedding in the family, as well as for their own wedding. The exact duration of marriage leave depends on the company policy, but employees can usually opt for 14 days of leave for marriage.

Moreover, employees can apply for marriage leave for their own wedding once during their entire employment period.

8. Compensatory Leaves

If an employee works overtime, they may request a compensatory leave. For example, if an employee works overtime for more than 3 days in a working week, they may ask for a day of compensatory leave. This is paid leave but short-term, usually lasting a day.

Other Types Of Leaves In A Company

Apart from the aforementioned kinds of leaves, there are also a few less common kinds of leaves that organizations may provide their employees. These are:

Menstruation Leave

Certain companies may also provide menstruation or period leaves for their female employees. Women employees who menstruate may require time off from work due to menstruation-related health concerns. They may be unable to attend work due to severe cramps, excessive bleeding and weakness, or for any other reason. They can thus apply for a menstruation leave.

Company policies usually provide for 1 day of menstruation leave each month.

Election Day (Voting leave)

Another type of leave that employees can take is a day-long leave to cast their vote. It's every eligible citizen's right to vote, and companies can't prevent employees from voting. At the same time, employees should not be expected to use their regular leave for casting votes. Thus, companies may introduce Voting Leave.

Study leave

Study Leave is time taken off from work for educational advancement. An employee may be preparing for an exam alongside work (like most Chartered Accountants in India) and need time off to prepare for the exam. Or they may even sign up for short-term courses that can help them amp up their skills. Thus, companies may give the option for study leave - long-term, unpaid leave.

Adoption Leave

In some countries, adopting parents are included in the maternity and paternity leave policy. In case that's not the case, companies may introduce an adoption leave for new parents, who wish to take time off from work to bond with their newly adopted children.

Apart from these types of leaves, companies in the US also offer mandatory leave for jury duty and military duty.

Public and Religious Holidays

Public and religious holidays are not included under the types of leaves in a company. Rather, they're non-working days for all employees of a company.

Here's a look at some of the common public and/or religious holidays in India

Republic Day
Ambedkar Jayanti
Eid-al-Fitr
Eid-al-Adha
Independence Day
Gandhi Jayanti
Diwali
Christmas

Apart from these India has several bank holidays and state-specific holidays that companies may include in their leave policy. For example, most companies in Maharashtra offer a holiday for the festival of Ganesh Chaturthi.

Non-Leaves

Apart from holidays and leaves, employees may not be present in the office physically in the following instances:

When they're working from home
When they're on fieldwork
When they're working at a client site
When they're traveling for work

The Company Leave Policy

Companies usually draft a leave policy that clearly states the types of leaves for employees, along with their duration, eligibility, and other important details. For example, most companies provide leaves to new hires and exiting employees (on their notice period) on a pro-rata basis.

Here's a look at all the things that should be covered in leave or absence policies of companies:

i) Total number of leaves provided to employees in a calendar year, divided by types.

ii) Leave application processes

iii) Notice required to submit a leave application. For example, some companies require employees to submit a leave application two or more weeks in advance, if the duration of leave is over three days.

iv) Guidelines about encashment, transfer and accrual of leaves. There should be clear guidelines on the type of leave that can be encashed, transferred and accrued. Companies also need to specify if there is an upper cap to the amount of leaves that can be carried over.

v) If special leaves or long-term leaves like sabbatical leaves, etc. require any specific supporting documentation. For example, some companies may require employees applying for a marriage leave to submit a copy of the marriage certificate after the wedding.

Detailed leave policies with clear guidelines foster a sense of transparency and help both, employers and employees to better plan their work and vacation.

Most employees, especially new hires, are curious about the type of leaves offered by an organization. It's always a good practice to introduce the leave policy to new employees within a week of their joining. Moreover, any changes to the absence policies should be shared with the workforce in a timely manner.

Frequently Asked Questions

1. How many consecutive leaves can be taken in a year?

Usually, employees can take 3 days of consecutive casual leaves and 10 days of consecutive annual leaves. However, the number differs from company to company.

2. Can unused leaves be carried over to the next year?

Companies may have different policies about unused leaves. Most companies allow employees to carry over unused privileged leaves but not casual leaves. Ideally, employees should study the leave policy thoroughly to understand how unused leaves are treated. In case an organization does not allow unused leaves to be carried over or encashed, it's best to take the time off work.

3. What's the difference between unpaid and paid leaves in India?

Paid leaves are leaves for which the employee receives a salary, even though they did not work during that time. For example, if you take 3 days of paid leave in a month, you will still be paid for the entire month. Types of paid leave are - casual leave, marriage leave, maternity leave, earned leave, etc.

Unpaid leaves are leaves for which the employee is not entitled to any salary. Thus, if you take 3 days of unpaid leave in a month, you will receive a salary for only 27 days. Types of unpaid leave are - Sabbaticals, study leave, and any leave taken after all paid leaves are exhausted.

4. Can my leave request be denied?

Yes, unless it's a mandatory leave, like maternity leave. An employer has the right to deny a leave request. However, employees can ask their supervisors or managers for the reason.