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A Brief Guide to Law Policies on Leaves with Their Types

All About Leave Policies for Employees

As an employer, it is a statutory and moral obligation to build a leave policy that enables them to take time off when needed. There are distinct sorts of leaves that employers should furnish their employees, in India.

In this very blog, we shall delve into distinct sorts of leaves and the statutory policies controlling the leave policies for employees in India.

Classes of Leaves for Indian Employees

Distinct sorts of leaves granted to Indian employees-

  • Sick Leaves: A set of leaves is provided to the employees in India, that could be assistive when they are not fit physically and are unable to work for the company.
  • Annual Leaves: Annual leave refers to earned leave, it is granted to Indian employees as per the number of days they have worked, and 15 days of annual leave per year in India is been mandated under the statute.
  • Casual Leaves: In specific situations, this type of leave is granted and is restricted to 10 days in a year.
  • Maternity Leaves: The same leave is granted to female employees who are expecting a child, and they are granted 26 weeks of maternity that could be used at once or in two phases.
  • Compensatory Leaves: Employees who are working beyond their regular schedules have been provided with compensatory leave, such as during weekends or holidays. As per the firm’s policies, the count of compensatory leaves may differ.
  • Bereavement Leaves: In the case of an immediate death in the family of an employee this type of leave is granted.
  • Paternity Leaves: The same paternity leave is qualified to male employees when their spouse gives birth to a child, and the law obligates a maximum of 15 days of paternity leave.
  • Study Leaves: If they deserve to pursue further education or pertinent training in their job role, employees are granted study leave. Such sorts of leaves permit the employees to attend their exams, classes, workshops, or training without losing their regular pay or job security.

Indian Laws Regarding Leave Policy

The laws controlling the leave policy in India are the Industrial Dispute Act of 1947, the Factories Act of 1948, the Shop and Establishment Act, the Maternity Benefit Act of 1961, and the Paternity Benefit Act of 2017.

The factory law obligates that employees are qualified to a minimum of 12 days of casual leave, 15 days of earned leave, and 12 days of sick leave in a year. The Shop and Establishment Act differs from state to state, but most states obligate that employees be granted 12 days of casual leave and 15 days of earned leave in a year.

Related: Simple Guide to Tax Rule on Leave Encashment While Job or Quitting

The Maternity Benefits Act obligates female employees to be granted 26 weeks of maternity leave including nursing breaks and medical allowances. The Paternity Benefit Act obligates paternity leave for dads( male employees) who are authorized 15 days of leave.

The Industrial Disputes Act streamlined the settlement of disputes between employees and employers and ensured that employees could not be terminated at the time of their duration of leave.

Leave Policy Advantages in India

In employee’s prosperity and the growth of the company, a leave policy plays a substantial role.

When the employees are at creative block then they have the choice to take a break if a leave policy is there in a firm and they shall never be exhausted.

It confirms legal compliance, improves productivity, enhances retention, and fosters a team-centric culture.

Read Also: Payroll Software Working Strategy for Fast Business Boostup

The leave policies in Indian private companies include various types of leave such as casual leave, sick leave, earned leave, maternity leave, paternity leave, and study leave. Each type of leave has specific entitlements, procedures, and terms and conditions that are defined in the company policies and employee handbook.

Employers to execute a leave policy, should need to learn the necessity of the employee and as per that alter their policies. They must communicate the employee’s policy, make a system for monitoring their leaves, and ensure the changes with pertinent labour laws in India.

Closure: For the well-being of employees as well as for the company’s growth in India, an extensive policy is crucial. Employers are obligated to furnish the correct number of leaves and follow the labour laws in India to ensure that their employees are not mistreated and work with no stress.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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