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Commentary

3.1.1 Leave structure in India

India

3.1ÌýÌýÌýÌý Leave of absence

3.1.1ÌýÌýÌýÌý Leave structure in India

Employee leave is a statutory obligation. All organisations formulate a leave policy which is shared at the time of the onboarding process of the employee. The leave policy of organisations in India has become more flexible and in-tune with international practices.

Generally, organisations have the following types of leave in addition to public holidays:

Table 10
Types of leavePurpose
– Earned or privilege leave (EL/PL) Leave that is sanctioned during the course of employment annually. Depending on organisation policy, EL may be accumulated and encashed.
– Sick leave (SL)Leave for tending to short-term illness.
– Casual leave (CL)Leave taken for short durations. CL cannot be encashed.
– Leave without pay (LWP) or Loss of pay (LoP)Leave applied for when the employee has no balance of leave left. No salary will be paid during

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