Making a leave policy is an important aspect of welfare and legal compliance for any company.
First, consider the nature of the business, size, number of employees, and the state where the main business is situated.
Get yourself updated with laws and local rules impacting leave, working hours, overtime, etc.
Set up eligibility conditions for leave (of course, subject to laws/rules of the state/Centre). For example - leave eligibility.
Eligibility For a Leave Policy
Eligibility as a criterion helps in ascertaining the sanctioning of leave to employees.
Is an employee eligible for leave while on probation?
Can an employee take leave during the notice period?
How many annual leaves is an employee entitled to? The minimum will be laid down by the 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 into 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 an employee does not report back on time?
Industry guidelines/union agreements, etc.
These are examples of what one should keep in mind while framing a leave policy.
Frame the leave policy, put it up for approval, and make it public for all to know and comply.