Leave policy template for Indian companies (2026)
A leave policy says how much leave employees get, how they apply for it and what happens to leave they don’t use. Below is a template you can adapt, followed by the legal minimums under the Occupational Safety, Health and Working Conditions Code, in force since 21 November 2025.
Leave policy template
Replace the numbers in [brackets] with your own, keeping at least the legal minimums for your state.
- Purpose and scope. This policy covers all employees of [Company name] in India.
- Leave year. The leave year runs from 1 January to 31 December.
- Annual (earned) leave. One day for every 20 days worked, for employees who work at least 180 days in the year. Apply [7] days in advance.
- Casual leave. [8] days a year, for short personal needs. It cannot be carried forward.
- Sick leave. [7] days a year. A medical certificate is needed for more than [2] days in a row.
- Public holidays. [10] paid holidays a year, including Republic Day, Independence Day and Gandhi Jayanti. The list is shared in December for the next year.
- Maternity leave. 26 weeks of paid leave for the first two children, and 12 weeks after that.
- Paternity and bereavement leave. [5] days each (optional, set by company policy).
- How to apply. Employees apply in the Crew app; the reporting manager approves or rejects within [2] working days.
- Carry forward and encashment. Up to 30 days of annual leave carry forward to the next year. Annual leave above 30 days at the end of the year is paid out.
- Leave on exit. Unused annual leave is paid in the final settlement.
- Leave without pay. Absence beyond available leave, or without approval, is unpaid.
Legal minimums to keep
| Leave | Minimum | Law |
|---|---|---|
| Annual leave with wages | 1 day for every 20 days worked, after 180 days of work in a calendar year | OSH Code |
| Carry forward | Up to 30 days; the excess is paid out at year end | OSH Code |
| Maternity leave | 26 weeks for the first two children, 12 weeks after | Code on Social Security |
| National and festival holidays | Set by your state | State law |
| Casual and sick leave | Set by your state’s Shops and Establishments Act | State law |
This template is a starting point, not legal advice. Check your state’s rules, which can set higher minimums.
How Crew runs it
In Crew, employees apply for leave in the app, managers approve it, balances update by themselves, and approved leave and leave without pay flow straight into payroll. See attendance and leave.
Frequently asked questions
How many earned leaves does an employee get in India?
Under the Occupational Safety, Health and Working Conditions Code, one day of annual leave for every 20 days worked, for workers who work at least 180 days in a calendar year. Someone who works 300 days earns 15 days.
Can unused leave be carried forward?
Up to 30 days of annual leave can be carried forward to the next year. Leave above 30 days at the end of the year is paid out.
Is leave encashment mandatory in India?
Under the OSH Code, annual leave above 30 days at the end of the year is paid out, and unused annual leave is paid when an employee leaves.
How many casual and sick leaves are required?
They are set by each state’s Shops and Establishments Act, so the minimum depends on where the employee works.
