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Once you have identified the types of leave an employee can take, you need to define various rules for each leave type. 

  • Grant/entitlement: The quantum entitlement—quantum of leave to be granted, how often and when.
  • Clubbing & covering rules for intervening weekends or holidays.
  • Availing rules: how Availing rules—how often an employee can avail a leave, limits, restrictions, etc.
  • Eligibility: Who Eligibility—who is entitled to this type of leave.
  • Approvals: Who Approvals—who can approve and approval limits.
  • Encashment
  • Year end activity: carrying activity—carrying forward of leaves up to a maximum limit, lapses, etc.
  • Clubbing & covering rules for intervening weekends or holidays.
  • Encashment
  • For  Sick Leave, Maternity Leave, etc. additional documentation to be maintained. HR needs to ensure that all documents are available.


A weekend policy states the days when employees can take their weekly off. Again, there are labor laws that mandate the minimum requirements. Paid weekly offs are relevant for leave computation. 

  • 5 day week: Saturday week—Saturday and Sunday are off.
  • 6 day week: only week—only Sunday is off.
  • Second Saturday off (apart from Sunday).
  • Alternate Saturday off (1st, 3rd, and 5th Saturdays are working in a month).



The statutory laws are diverse and vary from state to state and by industry type. You have the Factories Act for manufacturing industries, the Shops & Establishment Act for others , and so on. It is recommended to seek out the advice of a labor law expert to be fully compliant with the statutory requirements for your industry.