HR Leave Policy for Employees - Rules, Types & Compliance

Benefits of Managing Leave Policies with Bharat Payroll

Comply with labour laws in India

Align labour laws with those of the Factories Act, Shops and Establishments Act, and more.

01

Improved Employee Productivity

Provides clarity on leave entitlements and encourages employees to manage their leaves responsibly.

02

Efficient HR Administration

Easily customise leave types, carryover rules, encashment policies and eligibility criteria under a single platform.

03

Types of Leave Policies Supported by Bharat Payroll

Bharat Payroll’s system supports various leave types, enabling tailored policies to meet every organisation’s requirements.

Annual Leave (Privilege and Earned Leaves)

Annual Leave allows employees to take leaves for necessary relaxation or personal needs. This promotes employee well-being and productivity.

Leave Credits : Monthly, quarterly, or yearly credit of leaves based on employment tenure.
Carryover Rules : Decide if unused leave can be carried to the next year and set limits on accumulations.
Encashment : Enable leave encashment for unused leave at year-end or during final settlements.

Sick Leave

Ensure employees can take time to recover from illness without financial strain.

Annual Quota : Define annual entitlements, typically 12 days, as per local regulations.
Documentation Requirements : Customise policies for extended sick leave (e.g., medical certificate requirement).
Non-Carryover Policy : Unused sick leave lapses at year-end, in line with industry norms.

Casual Leave

Casual Leave allows flexibility for short, unplanned absences for personal matters.

Flexible Use : Employees can apply on short notice.
Non-Accumulative : Typically lapses at year-end promoting essential usage policy.

Compensatory Off (Comp-Off)

Reward employees with leave for working on weekends or holidays.

Approval-Based : Requires managerial approval.
Expiry Rules : Set expiration dates, e.g., within eight weeks, to ensure timely usage.

Maternity and Paternity Leave

Keeps Compliance with the Maternity Benefit Act and paternity leave ( customisable ) according to company policy.

Maternity Leave : Offers up to 26 weeks, in line with current statutory entitlements.
Paternity Leave : Flexible options for companies to define duration and eligibility for male employees.

Loss of Pay (LOP) or Unpaid Leave

For employees who have exhausted their leave balance but require additional time off.

Payroll Integration : Automatically adjusts payroll to reflect deductions for unpaid leave.
Approval Options : Ensure minimal workflow disruptions through managed approval.

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Bharat Payroll’s Compliance with Indian Labor Laws

Stay effortlessly aligned with India’s labour laws using Bharat Payroll.

Factories Act

Supports statutory provisions for annual leave based on workdays.

Shops & Establishments Act

Stay compliant with state-oriented leave entitlements in India.

Maternity Benefit Act

Supports maternity leave policies for eligible employees assuring compliance.

Features of Bharat Payroll’s Leave Policy Customisation

Comprehensive Leave Rules and Settings

Define detailed leave rules to ensure your policies reflect company values and practices.

Eligibility Criteria : Set criteria based on employment duration, department, or role.

Leave Granting Frequency : Choose monthly, quarterly, or annual granting options.

Minimum and Maximum Days : Specify per-instance limits for each leave type.

Flexible Accrual and Carryover Policies

Tailor accrual and carryover options to encourage responsible use of leave.

Automatic Accrual : Use a pro-rata basis to calculate leave balances.

Carry Forward Limits : Set specific limits on accumulated leave to manage liability and encourage timely leave use.

Customised Leave Encashment

Provide employees with added flexibility and financial options.

Year-End Encashment : Set policies for encashing unused leave at year-end.

Final Settlement Encashment : Offer leave encashment during final settlements, simplifying exit processes.

Why Choose Bharat Payroll for Leave Policy Management?

Simple Setup for HR Teams

Quickly customize leave policies, reducing manual calculations and ensuring consistency across departments.

Automated Compliance Management

Automatic updates ensure policies stay compliant with labour regulations, including the Maternity Benefit Act and Factories Act.

Customisable Policy Creation

Create tailored leave policies for different employee groups, including contract workers, probationers, and full-time employees.

Enhanced Employee Experience

The self-service portal allows employees to view balances, request time off, and track approval status, reducing HR workload and increasing satisfaction.

Transparent Leave Balances and Notifications

Real-time leave balance displays and automated notifications keep employees informed about their leave status.

Reduced HR Workload with Self-Service Options

Employees can submit leave requests independently, decreasing HR’s administrative tasks and maintaining operational efficiency.

Bharat Payroll’s Leave Policy for a Healthy Work Environment

Reduces Absenteeism:Transparent entitlements encourage responsible leave use.

Promotes Work-Life Balance: Clear policies empower employees to take necessary time off without stress.

Supports Mental Well-Being: Taking leaves occasionally allows employees to refresh mentally resulting in improved productivity.

Frequently Asked Questions

What types of leave policies does Bharat Payroll support?
Bharat Payroll supports inclusion and customisation of all major leave types - “Annual Leave, Sick Leave, Casual Leave, Maternity and Paternity Leave, Comp-Off, and Loss of Pay (LOP)”. We ensure that each kind of leave aligns with company policies and statutory provisions.
How does Bharat Payroll ensure compliance with Indian labour laws?
Bharat Payroll’s Leave Policy adheres to major Indian labour laws like the Factories Act, Shops and Establishments Act, Maternity Benefit Act, etc. which ensure legal compliance across states.
Can I customize accrual and carryover policies in Bharat Payroll?
Yes, you can set accruals monthly, quarterly, or yearly and define carryover limits to manage leave liabilities effectively.
Does Bharat Payroll support leave encashment?
Yes, with Bharat Payroll, you can set year-end or final settlement encashment policies, adding value to employee benefits.
How does Bharat Payroll handle unpaid or Loss of Pay (LOP) leave?
Unpaid leave is automatically reflected in payroll calculations, deducting for LOP days and requiring managerial approval to maintain workflow continuity.
Can I create specific eligibility criteria for different leave types?
Yes, you can set eligibility based on employment status, department, or role, ensuring fair leave distribution.
Does Bharat Payroll provide real-time leave balances for employees?
Employees can view their current leave balances through the self-service portal directly. This helps them plan their leaves effectively.
What approval process is required for Compensatory Off in Bharat Payroll?
Comp-Off requires managerial approval, with expiration rules ensuring timely usage, such as within eight weeks.
How does Bharat Payroll support employee satisfaction?
Clear leave policies and self-service options promote transparency. It results in better work-life balance which reduces absenteeism increasing job and employee satisfaction.
Can Bharat Payroll handle unique leave rules for various departments?
Yes, Bharat Payroll enables custom rules by department or location, ensuring consistent and fair leave policies across the organisation.

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Leave Policies by Bharat Payroll – Empowering Employees