Company Leave & Attendance Policy Template (India)

[COMPANY NAME] - EMPLOYEE LEAVE & ATTENDANCE POLICY

EFFECTIVE DATE: [Date, e.g., April 1, 2026]
APPLICABILITY: All permanent and probationary full-time employees

1. OBJECTIVE & PURPOSE
This policy establishes standard, transparent guidelines for leave entitlements, approval workflows, and encashment terms in compliance with applicable State Shops & Commercial Establishments Acts and the Factories Act, 1948.

2. LEAVE YEAR & ACCRUAL
The leave calendar year runs from January 1 to December 31 (or April 1 to March 31). Leaves accrue on a pro-rata monthly basis upon completion of each active calendar month of service.

3. LEAVE CATEGORIES & ENTITLEMENTS

3.1 EARNED LEAVE (EL) / PRIVILEGE LEAVE (PL) - [15 to 18 Days per annum]
- Accrual: 1.25 to 1.5 days per completed calendar month.
- Purpose: Planned vacations, personal commitments, and rest.
- Advance Notice: Requires minimum 7 days' prior notice and managerial sanction.
- Carry Forward: Maximum of [30 to 45] days can be carried forward to the subsequent year. Excess unavailed EL will be encashed as per statutory basic pay.

3.2 CASUAL LEAVE (CL) - [7 to 12 Days per annum]
- Purpose: Unforeseen personal exigencies or urgent errands.
- Notice: Must be applied at least 24 hours in advance or by 10:00 AM on the day of absence.
- Restriction: Cannot be taken for more than 3 consecutive days at a time. Unavailed CL lapses at year-end and cannot be encashed.

3.3 SICK LEAVE (SL) / MEDICAL LEAVE - [7 to 12 Days per annum]
- Purpose: Employee illness, medical consultations, or hospitalization.
- Certification: Medical certificate from a registered medical practitioner (MBBS) is mandatory for sick absences exceeding 2 consecutive working days.
- Lapses at year-end and cannot be carried forward.

3.4 MATERNITY LEAVE (Maternity Benefit Amendment Act, 2017)
- Entitlement: 26 weeks of fully paid leave for female employees having worked for at least 80 days in the 12 months preceding expected delivery date (up to first two surviving children).
- 12 weeks for mothers with two or more surviving children.

4. THE SANDWICH RULE POLICY
Company policy [Enforces / Does NOT Enforce] the Sandwich Rule:
"If an employee takes unapproved leave on both Friday (preceding a weekly off) and Monday (succeeding a weekly off), the intervening weekend (Saturday and Sunday) shall be treated as unpaid leave (Loss of Pay) unless authorized by the department head."

5. LOSS OF PAY (LOP) / LEAVE WITHOUT PAY (LWP)
Any absence beyond accrued leave balances or unapproved absenteeism will result in proportional Loss of Pay calculated using the standard formula:
LOP Deduction = (Monthly Gross Salary / Calendar Days in Month) × Absent Days

6. LEAVE APPLICATION WORKFLOW
All leave requests must be logged through the MicroPlesk Employee Self-Service PWA or Web Portal before the payroll cutoff date (25th of every month).