Making a leave policy is an important aspect of welfare and legal compliance for any company.
First
What is the nature of business and size,number of employees and state where main business is situated?
Gen your self update with laws and local rules impacting leave-working hours,OT etc
Set up eligibility conditions for leave (off course subject to law/rules etc of the state/Centre)
for example -leave eligibility
Eligibility For a Leave Policy
Eligibility as criteria helps in ascertaining, the sanctioning of leave to employees.
If an employee is eligible for leave while on probation?
Can an employee take leave during notice period?
How many annual leave is an employee entitled? again minimum will be laid down in law
What is the quantum of leave that can be applied/granted at one time, and can it be approved?
For the sake of convenience, leaves should be divided under different segments for better management-casual/earned/maternity etc
Maternity leave is regulated by law
What is the procedure for applying for leave?
Who can sanction it?
How to track employees on leave-to know if employee does not report back on time?
Industry guidelines/union agreements etc
These are example of what one should keep in mind while framing leave policy.
Frame leave policy,put it up for approval and make it public for all to know and comply.