Leave Types: The Complete Guide

In less than 100 years, we’ve made a significant leap from workers who had no paid time-off, off to being entitled to various paid leave types and public holidays.

Every country has laws on labor that allow employees to take various leave types for various reasons. In order for employers to be in compliance with the laws, it’s essential to be aware of the different laws governing paid time off.

Additionally, many progressive companies now provide a variety of additional leave types as additional benefits to their employees. This article will discuss the different kinds of leaves employers are required to provide to employees.

Different paid leave types that companies offer:

Here are most commonly offered paid leaves by most employers:

We will now see each leave has its own explanation.

Paid Leave / Earned Leave (PL):

This leave type allows employees to take time off work with pay. In most cases, employees are able to use their vacation days within a certain period after they’ve been employed by an employer for a certain amount of time. The type of EL leave is generally utilized for personal reasons, such as vacation, or to observe celebrations that are not officially declared holidays, etc.

A week of leave or more is thought of as “long leaves.” Because work could be disrupted when an employee is on an extended vacation, this kind of absence must be planned in advance and the team or manager be informed prior to the time.

The requirement to provide earned leave is compulsory according to the laws of labour although the quantity of these leaves varies state by state. The entitlement to leave is calculated according to a set amount of work days (e.g. 20 workdays). The days worked cannot include weekends, holidays or days on which employees are not working.

One unique aspect of earned leave is that the balance of leave at the end of the year is carried over into the following year. State laws also govern the length of time that leave can carry forward into the next year.

Earned Leaves may also be converted into cash via the process of Leave Encashment.

The salary that is the basic one is typically used as the basis of exchange for encashing leaves. One day’s EL balance is converted to one day’s basic wage. In some companies the gross income is considered in lieu of the basic salary.

Casual Leave (CL):

As opposed to earned leaves, which are planned in advance and can be used for specific purposes such as taking care of a sick relative or visiting a loved one, casual leaves can be used for any urgent unforeseen personal requirements. This flexibility is especially useful if you have to take care of an unexpected family emergency on vacation or if you need to cover a shift at work when you are unexpectedly unavailable. 

Casual leaves are one of the leave types that allow for more spontaneity and less stress, making them the ideal choice for times when you need to take care of something quickly but don’t have time to plan ahead.

Sick Leave (SL):

Sick Leave is another common leave type mandated by the law. As these leaves are prone to misuse, employers usually seek a medical certificate in order to be sure that the employee is actually sick. There are many reasons why an individual may take sick leave, but some of the most common include: feeling ill, having a fever or cold, experiencing headaches, and being unable to work because of an injury. 

One of the most common types of leave taken is vacation time. Employers generally grant employees a certain amount of vacation time as part of their benefits package, and employees are allowed to use this time off for whatever reason they please. 

However, if an employee takes sick leave and does not return to work following their allotted vacation time, then their employer has the right to ask for documentation demonstrating that they were truly unable to come back to work.

Maternity Leave:

The Maternity Benefit Act of 1961 requires that employers provide 26 weeks of paid leave to any woman who has completed a six-month period of employment. This leave can be taken in one block, or it can be spread out over several months. The act also guarantees that the mother will retain her job and receive back pay for the time she is away from work. This type of leave is called “maternity leave.

State laws regulate the three kinds of leave (AL/CL/SL), The Maternity Benefit Act is a central government law. The leave is available to the two first children only. If there is a third child, twelve weeks of leave can be taken. The Act also permits mandated leave in the event of miscarriage or adoption, surrogacy, and tubectomy.

Compensatory Off:

If an employee must work on a weekend or holiday due to the importance of deliverables they will be given a compensatory day for any other day of the week. Since the leaves are dependent on the requirements of the business, the approval of these leave entitlements is made on a case-by-case basis. There is a procedure for claiming and utilizing comp-off leaves.

Marriage Leave:

The marriage-leave grant is one of the most generous leave types that employers offer. It can be anywhere from 1 to 15 days, but most companies tend to give three days of marriage leave as a norm. While this type of leave is great for couples who are planning a wedding, it can also be beneficial for single employees who need time away from work to process their new relationship or deal with any emotional issues they may be experiencing.

The HR department could require the form of the invitation form or marriage certificate as proof of marriage to authorize the leave. Furthermore, the eligibility is for only one time during the entire period of employment within the company. In the event of remarriage or more than one marriage, the employees would be required to use the balance of their annual leave or go on unpaid leave.

Another rule that’s sometimes utilized may be just the very first marriage that is legal to the spouse can be allowed. Take, for instance, the instance of an employee, Prakash Roy, who married just a few years ago when working for a previous employer. Following that, Prkash divorced and joined the new firm. 

(Of course this was not simultaneously and not for the same reason!) Then, Prakash has decided to marry, but again. Best wishes for a blissful marriage, but no the bride will not be able to take any kind of marriage leave.

Sometimes, due to the pressure of work, employees might be married and then return to work. When the project is finished the couple can take a trip on honeymoon within several weeks. In these scenarios, the company could allow for the honeymoon to be taken any time within the first 8 weeks before the grant ends.

Paternity Leave:

Fathers everywhere are gearing up for the arrival of their new bundle of joy, and they know that paternity leave is one important step in taking care of them. But what is paternity leave, exactly? 

Paternity leave is the vacation that fathers of expecting babies can take after the birth of their child. This is a vacation intended to allow the father to care for the baby and mother. The amount of time allowed for leave varies from 2 days to four weeks and is dependent on the employer’s policies.

Bereavement Leave:

Bereavement leaves are a kind of leave granted after a family death or when a loved one is lost. This leave can be used for a variety of reasons, such as grieving and adjusting to the new situation. Taking this time away from work allows employees to focus on their emotional and mental health without feeling pressure to return to work prematurely.

Leave Without Pay (LWP):

There are times when an employee has used up all leave , but needs time off due to an emergency. In these instances, companies permit them to take leave with no payment (LWP). Because there’s loss of income (LOP) in the event that an employee takes this kind of time off, the leave is known as LOP leave.

Any leave taken in violation of the leave policy is regarded as LOP for some employers. For instance employees who go on vacation without prior notification or approval. or an employee who is not giving medical certificates in the event of sick leave in accordance with the policy.

HR managers and business executives must be aware of the many kinds of absence. So, they’re in a position to make sure employees feel safe and respected within their work. When drafting your policy it is essential to think about and include all appropriate kinds of leave. This will allow your company to stay competitive and compliant in an ever-changing environment.