Guide for Types Of Leaves and Law policies for Employees in India

Introduction

As an employer, it is a legal and moral duty to establish a leave policy that enables them to take time off when required. In India, there are various types of leaves that employers must provide their employees. In this article, we will delve into different types of leaves and the laws and policies governing leave policies for employees in India.

Types of Leaves for Indian Employees

Various Types of Leaves Granted to Indian Employees:

1. Casual leave: This type of leave is typically granted for certain circumstances and is usually limited to 10 days in a year.
2. Sick Leave: A set of leaves is allocated to employees in India, which can be helpful when they are not physically fit and are not in a situation to work for the company.
3. Annual Leave: Annual leave also refers to earned leave, typically granted to Indian employees according to the number of days they have worked, and the law mandates 15 days of annual leave per year in India.
4. Maternity Leave: Maternity Leave is granted to female employees who are expecting a child, and they are granted 26 weeks of maternity leave, which can be utilized at once or in two phases.
5. Paternity Leave: This paternity leave is entitled to male employees when their spouse gives birth to a child, and the law mandates a maximum of 15 days of paternity leave.
6. Bereavement leave: This is granted to employees in the event of an immediate death in their family. The number of days granted differs from company to company.
7. Compensatory leave: Compensatory leave is granted to employees who work as compensation for working extra hours beyond their regular schedules, such as during weekends or holidays. The count of compensatory leaves may vary according to the firm's policies.
8. Study Leave: Employees are granted study leaves if they deserve to pursue further education or relevant training in their job role. These leaves allow employees to attend their exams, classes, workshops, or training without losing their regular pay or job security.

Laws Surrounding Leave Policy in India  

The key laws governing 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 mandates that employees are entitled 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 varies from state to state, but most states mandate that employees are granted 12 days of casual leave and 15 days of earned leave in a year.

The Maternity Benefits Act mandates female employees are granted 26 weeks of maternity leave along with nursing breaks and medical allowances. The Paternity Benefit Act mandates paternity leave for dads( male employees) who are entitled to 15 days of leave. The Industrial Disputes Act provides for the settlement of disputes between employees and employers and mandates that employees cannot be terminated during their leave period.

Benefits of Leave Policy in India

A leave policy plays a significant role in employee's prosperity and the growth of the company

If a leave policy is implemented in a firm, employees will never be exhausted, and they will have the option to take a break when they are at a creative block.

It ensures legal compliance, increases productivity, improves retention, and fosters a team-centric culture.

Leave policies in Indian private companies include casual leaves, sick leaves, earned leaves, maternity, paternity, and study leaves, with specific entitlements, procedures, and terms and conditions defined in the company policies and employee handbook. To implement a leave policy, employers must first understand the requirements of the employee and accordingly modify their policies. They should communicate the policy of the employees, create a system for tracking their leaves, and ensure changes with relevant labor laws in india.

Conclusion

An extensive policy is important for the well-being of employees and for the growth of a company in India. Employers must be provided an appropriate number of leaves and comply with the labor laws in India to ensure that their employees are not mistreated and work in a stress-free atmosphere.

The author is an operations director and co-founder of Ebizfiling India Private Limited and has 13+ years of rich and profound experience with various corporate sectors. In due process, she gained vast knowledge of all the areas of Indian statutory compliance, which include laws & taxation. She can also be reached at info@ebizfiling.com