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Leave Policy Drafting
Labour Law Compliance

Setindiabiz helps you remain compliant with the applicable labour law provisions by drafting a comprehensive leave policy for your establishment that aligns with the state-specific Shops & Establishment Act. Get started today!
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Drafting of Leave Policy

Leaves are regulated under the Shops and Establishments Act and differ from state to state. We help you draft a comprehensive leave policy for your company in India to remain compliant.

Package Inclusion:

  • Drafted by Lawyer
  • 100% Online Process
  • Based on SA Act Provisions
  • Customised for Your need
  • Written Opinion Covered
  • TAT: 3 Working Days

Pricing Starts

₹ 4999* + Gst

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*For Each State/NCT

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Leave Policy Drafting Services of Setindiabiz

Certainty in a company’s employment policies is crucial for a positive and motivated workforce. The leave policy is one of the most referenced documents in any organisation. It should be comprehensive and in compliance with local labour laws applicable in the particular state where the establishment has its office. If an employer has branches or offices in more than one state, a separate leave policy should be drafted for each state.
Though the main objective of drafting a comprehensive leave policy is to follow the local labour laws, it also promotes transparency, improves overall employee satisfaction, and definitely minimises conflicts. Leave entitlement and the provisions with respect to its carry forward, and encashment are generally provided under the Shops & Establishment Act. The rules thereunder provide for the method of availing the leaves.

How We Help!

At Setindiabiz, we have prepared state-specific standard leave policies that you may read by accessing the link provided under the state-wise leave policy section. Our customised leave policy drafting would help you prepare a comprehensive employee leave policy that is fair, compliant, and acceptable to the employees.

The leave policy we draft are:

  • Comprehensive Document
  • Fair & Compliant with the law
  • Worded in Simple English
  • Contains examples & Tables
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Leave Policy for Different States in India

The leave provisions differ from state to state owing to the different cultural backgrounds and needs of the local population. In principle, the Shops & Establishment Act, as enacted or adopted by a particular state or NCT, determines the leave entitlement and related provisions. Team setindiabiz helps you prepare a comprehensive leave policy for your organisation that aligns with the organisational objective and complies with local and state regulations.

Read Leave Policy of Important States

Delhi

Gurugram

Uttar Pradesh

Maharashtra

Gujarat

Hyderabad

Karnataka

Tamil Nadu

Our Leave Policy Drafting Services

At Setindiabiz, we offer comprehensive legal services to draft the leave policy of your company with an objective to follow the applicable legal provisions of the state and to ensure that the organisation’s culture or objective is duly reflected in the Leave Plan. Whether the organisation is a startup or a large enterprise, all types of businesses need clarity and transparency in their employment-oriented policies. Therefore, our services are useful to all sizes, industries and jurisdictional requirements. Following should form the content of the leave policy

Contents for a comprehensive leave policy

  • Overview of Leave Policy
  • Types of Leave
  • Leave Accrual
  • Carry Forward Policy
  • Leave Approval Process
  • Leave Restrictions
  • Leave Encashment Policy
  • Leave Documentation
  • About Public Holidays
  • Emergency Leave Provisions
  • Special Leave Types
  • Leave Without Pay (LWP) Rules
  • Disciplinary Action for Policy Violation
  • Examples & Illustrations

Process of Drafting a Leave Policy

We take a consultative and collaborative approach to drafting a comprehensive leave policy for your organisation. The stepwise process of drafting the leave policy can be summarised in the following steps.
  • step-1
    Consultation With Labour Law Expert

    After your order is confirmed, we arrange an online consultation meeting with an experienced labour law expert to discuss any specific details or customisations the organisation may need to make. We will also share brief legal provisions with you and ask for your confirmation or suggestions for customisation.

  • Step-2
    Customisation & Draft Leave Policy

    We prepare a draft of the leave policy that meets your business objectives and aligns with local and state legal provisions. The draft policy provides details of applicable leave types, entitlements, and conditions for availing of a particular leave. We share the draft policy for your suggestions on required modifications.

  • Step-3
    Review and Revision to Draft Leave Policy

    During the review process, we work closely with your HR team to ensure proper discussion and deliberation before finalising the organisation's leave policy. We assess the suggestions received and make suitable changes to the leave policy.

  • Step-4
    Final Leave Policy & Implementation Support

    The final result is a comprehensive leave policy for your company, which is a comprehensive document governing the organisation's leave and is Fair and compliant with the law. As an add-on service, we also extend our services in making changes to popular HRM systems like Zoho People.

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Benefits of Leave Policy

A comprehensive and well-drafted leave policy helps follow legal requirements and promotes transparency, satisfaction and employee retention. It also provides the methodologies for availing leave and handling situations by the human resource teams. Following are the key benefits of a written leave policy for your organisation.

Legal Compliance

A written leave policy is necessary for complying with local and state labour laws, especially the Shops and Establishment Act and rules.

Employee Satisfaction

A transparent and well-drafted leave policy fosters a culture of trust and reduces conflicts. Therefore, employee satisfaction increases for good.

Streamlining Leave Approvals

The leave policy also provides for the method and process of taking leave and, therefore, streamlines the entire leave application process.

Handling Life Events

The leave policy must also have a clear position of the organisation to deal with the life events such as maternity, paternity, medical emergencies etc.

Types of Leaves in India

In India, there are several types of leave that can be offered to the employee by an organisation. At the same time, some of these leave types are required under law, such as sick leave, casual leave, privilege leave and maternity leave. However, some leave types are offered based on human resources best practices. Following are the most common leave types.
  • Casual Leave
  • Sick Leave
  • Earned/Privilege/Annual Leave
  • Maternity Leave
  • Paternity Leave
  • Bereavement Leave
  • Compensatory Leave
  • Unpaid Leave (Leave without Pay)
  • Sabbatical/Extended Leave

Frequently Asked Questions

1. What are the labour laws in HR?

The human resource department has to ensure that the provisions of several labour laws are implemented in the organisation and proper records and registers are maintained, apart from filing the labour law returns on time. The most common legislation requiring attention is the Minimum Wages Act, Shops & Establishment Act, Provident Fund Act, Employee State Insurance Act, Contract labour act etc.

2. What is the leave policy as per labour law?

The leave policy of an organisation is an internal document that governs the leave entitlement of the employees. However, it must be as per the Shops and Establishments Act as enacted or adopted by the respective state or union territory. The leave entitlement, its carry-forward, encashment, or earned leave, and the process of availing the leaves must conform to the provisions of the Shops and Establishments Act.

3. What is the leave policy for private companies?

The leave policy of the company, LLP or any other private commercial establishment would be governed by the shops and establishment act.

4. What is CL and PL leave?

CL stands for casual leave, and PL stands for privilege privilege leave; the leave entitlement differs from state to state. In some states, sick leave and casual leave are provided separately, while in others, the entitlement is combined leave. The privilege leave entitlement also differs from state to state.

5. How many cl leaves in a year?

The entitlement for casual leave differs from state to state. For example, in the NCT of Delhi, one day of casual leave is provided after the completion of every month of continuous employment. Similarly, in the state of Karnataka, one day of casual leave is given after every twenty days of work.

6. What is the structure of the leave policy?

The leave policy of a private commercial establishment must be structured to meet the specific needs of the organisation while ensuring compliance with the Shops and Establishment Act and other laws such as the Maternity Benefit Act. The leave policy may give additional benefits to the employees, but it can’t offer lesser entitlement than what is provided under the Shops and Establishment Act.

7. What is the leave policy in Labour law?

As such, the labour laws do not lay down a standard leave policy to be adopted by private commercial establishments; rather, they emphasise the legal entitlement of the employees. In other words, labour laws, such as the Shops and Establishment Act or the Maternity Benefit Act, provide for the minimum leaves that must be given to employees.