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Last Updated: January 01, 2026
Document Version: 1.0
Prepared for: Emgage HRMS Implementation Team

Types of Leave

Paid Leave allows employees to take approved time off while continuing to receive their regular salary. These leaves are part of the company’s employee benefits and support work–life balance, health, and personal needs.

Types of Paid Leave

The following leave types are generally considered Paid Leave:

  • Casual Leave (CL): Short-term leave for personal matters or unforeseen situations.
  • Sick Leave (SL): Leave taken due to illness or medical reasons.
  • Earned / Privilege Leave (EL / PL): Leave accrued over time and usually used for planned vacations.
  • Compensatory Off (Comp-Off): Leave granted for working on weekends or holidays.
  • Need-Based Leave: Leave granted based on genuine and specific personal needs, subject to manager approval and company policy.
  • Anniversary Leave: Paid leave granted to employees on their work anniversary or marriage anniversary (as applicable by company policy).
  • Condolence Leave: Paid leave provided to an employee in the event of the death of an immediate family member, allowing time for mourning and related responsibilities.
  • Optional Leave (OL): Leave that employees may choose from a list of optional days based on personal, cultural, or regional preferences.
  • Optional Holiday: A holiday that employees can optionally avail from a predefined list of holidays, subject to approval and policy guidelines.
  • Maternity Leave: Paid leave provided to female employees as per company policy and applicable legal guidelines.
  • Paternity Leave: Paid leave granted to male employees around the time of childbirth.

Unpaid Leave

Unpaid Leave allows employees to take time off without salary for the approved duration. This leave is usually applied when paid leave balances are exhausted or when extended absence is required.

Types of Unpaid Leave

The following leave types are generally considered Unpaid Leave:

  • Leave Without Pay (LWP): Leave taken when no paid leave balance is available.
  • Extended Medical Leave: If the sick leave balance is exhausted, additional medical leave may be treated as Leave Without Pay (LWP) or Unpaid Leave, subject to approval.

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Basic Policy vs Advance Policy (Short Comparison)

Types of modes in Leave Policy :
Basic , Advance

  • The key differences between Basic Policy and Advance Policy in a simple and concise manner.
  • The comparison applies to all leave types such as PL, CL, Sick Leave, LWP, Maternity, Comp-Off, etc.

Basic Policy

The Basic Policy provides a simple leave setup with minimal configuration.

Key Features

  • Basic policy details (name, leave code, calendar, effective date)
  • No restriction on when employees can apply for leave
  • No minimum or maximum leave limits per request
  • No sandwich rule handling for holidays or week-offs
  • No mandatory document enforcement
  • Applies broadly without detailed employee conditions

Best Used When

  • Leave tracking needs are simple
  • No strict governance or automation is required

Advance Policy

The Advance Policy enables detailed control and automation for leave management.

Key Features

  • Advance notice rules for leave application
  • Minimum and maximum leave limits per request
  • Mandatory supporting document rules
  • Sandwich rules for holidays and week-offs
  • Half-day leave handling
  • Employee applicability based on SBU, department, role, or location
  • Reduced manual intervention and better compliance

Best Used When

  • Organization requires strict leave control
  • Automated rule enforcement is needed
  • Payroll and attendance accuracy is critical

Comparision Table

Basic PolicyAdvance Policy
Fewer rulesMore rules
FlexibleControlled
Manual handlingAutomatic handling
Simple setupDetailed setup
Apply leave anytimeApply leave with conditions
No leave limitsLeave limits can be set
No sandwich rulesSandwich rules supported
No documents neededDocuments can be mandatory
Applies to everyoneCan be limited to employees
Less accuracyMore accuracy

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