Guide · 5 min read
How to write a clear leave policy
What a good leave policy covers - leave types, accrual, approvals, carry-forward, and encashment - and how to keep it fair and easy to apply.
Read more All hr glossary
Leave
Casual, sick, and earned leave
The most common types of leave and how they differ.
- Topic
- Leave
- Read time
- 2 minutes
- Level
- Beginner
- Applies to
- HR teams and employees
What it means
Casual leave covers short, unplanned personal needs. Sick leave is for illness and often needs a medical certificate beyond a few days. Earned (privilege) leave accrues with days worked and is usually planned. Entitlements and names depend on policy and the laws where you work.
Benefits
- Helps employees plan time off confidently.
- Reduces confusion about entitlements.
- Supports fair and consistent leave decisions.
- Improves work-life balance.
Example
- 10 casual, 10 sick, and 20 annual leave days a year is one common combination.
Related terms
- Compensatory off
- Leave encashment
- Parental leave
Rates, limits, and rules (for example for pensions, social insurance, and end-of-service pay) differ by country and company and change over time. Treat these as general explanations and confirm the current position where you operate before relying on them.
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