Paid time off in India

Annual leave policy in India

The Indian leave policy grants employees a minimum of 15 days of paid holiday annually, contingent upon the completion of 240 days of employment within your organisation. It is, however, a widely adopted practice to offer additional leave days beyond this statutory requirement. Such flexibility not only enhances employee satisfaction but also positions your organisation as a preferred employer.

The annual leave policy in India is governed by the Factories Act of 1948. Employees who are 18 years old and above, known as adult employees, are eligible for annual leave with wages, earning one day of leave for every 20 days they worked in the previous calendar year. Meanwhile, young employees, defined as those under the age of 18, are entitled to one day of leave for every 15 days they have worked.

Meanwhile, the Shops and Establishment Act, applicable to employees in commercial establishments, mandates different leave benefits depending on the state but generally includes provisions for annual leave, casual leave, and sick leave.

Medical leave policy in India

The medical leave policy for employees is governed by various acts depending on the nature of the employment and the sector.

The Apprentices Act allows individuals appointed as apprentices to accumulate up to 40 days of medical leave, with a maximum of 15 days per year.

For employees covered under the Plantation Labour Act, 1951, the sick leave entitlement is in accordance with company policies.

Moreover, companies in India often have their own sick and medical leave policies, which can include provisions aligned with the Earned Leave rules under the Factories Act of 1948. This act provisionally allows for 1 day of paid sick leave for every 20 days worked, capping at 18 days annually.

Sick leave policy in India

Employees in continuous service for a minimum of three months are eligible for 15 days of paid sick leave annually and are required to submit a medical certificate within 48 hours following the onset of their illness.

The government sets the compensation for this leave at 70% of the employee’s usual daily wage. In private sector companies, it is the responsibility of the employers to cover this cost, with no option for reimbursement from the government.

For factory workers, no distinct sick leave category exists; they must utilise their allocated annual leave for any health-related or casual absences.

Presently, there are no specific guidelines for providing paid sick leave in situations requiring extended absences or for injuries sustained while working. Under such circumstances, unpaid leave is provided at the employer’s discretion, underscoring the importance of employer flexibility and support for their workforce’s health needs.

Marriage leave policy in India

There is no standardised legal requirement for marriage leave applicable to all employees. Generally, employees can use their vacation or casual leave for this purpose. Companies looking to hire talent in India must keep in mind that employees typically take 3–15 days for this special occasion. However, the grant of marriage leave depends on the company’s discretion and its leave policy.

While marriage leave is common in India, its duration and conditions can differ significantly from one organisation to another. Employees usually need to apply in advance and provide relevant proof, such as a wedding invitation, to avail themselves of this leave.

Bereavement leave policy in India

In India, there are no specific laws mandating bereavement leave for employees. Companies can create their own policies for bereavement leave, and these policies may include leaves for situations like the death of an immediate family member or a pet. The details of such leave, including its duration and eligibility, are determined by individual company policy and may vary widely across different organisations.

While some companies may offer a set number of bereavement leave days, others may address it on a case-by-case basis. Generally, policies may specify the payment status of the leave, the employee’s relationship to the deceased, and any required documentation.

Leave policy for private companies in India

The leave policy for private companies in India incorporates both labour laws and market practices to formulate employee leave entitlements. While labour laws establish a baseline for minimum leave entitlements, many companies go beyond these stipulations as part of their commitment to employee welfare and to stay competitive in the job market. The common types of leaves include earned leave, casual leave, sick leave, and maternity leave, among others.