Leave Policy Explained for Freshers: CL, SL, EL and More

Last updated: 12 October 2026 · By the Asuraa Team

Quick answer: Most Indian companies give three main leave types: casual leave (CL) for short personal needs, sick leave (SL) for illness and earned or privilege leave (EL/PL) that builds up as you work and can often be carried forward or encashed. Exact numbers vary by company and state. Laws such as the OSH Code and state Shops and Establishments Acts set minimums, and your company policy or appointment letter gives the actual rules.

Key takeaways

• CL is for short planned or urgent personal needs, SL is for illness, and EL or PL builds up as you work and is meant for longer breaks such as vacations.
• Leave numbers, accrual and carry-forward rules differ between companies and states, so your HR policy and appointment letter are the documents that apply to you.
• Under the OSH Code, a worker who works 180 days or more in a calendar year earns annual leave at one day for every 20 days of work, in covered establishments.
• Many companies credit EL monthly or after probation, and some restrict planned leave during probation, so ask HR how it works before booking a trip.
• Encashment usually applies to earned leave, not casual or sick leave. Check the cap and whether it happens yearly or only when you leave the company.

Where your leave rules actually come from

In your first job, leave can feel confusing because three layers apply at once:

1. The law sets a minimum for workers in covered establishments. Which law applies depends on the type of establishment and the state.
2. Your company's leave policy sets the actual numbers, which are often more generous than the legal floor.
3. Your offer and appointment letter may mention leave, or simply refer to the HR policy.

So two freshers in the same city can have very different leave. The answer to "how many leaves do I get?" is in your HR policy, not in a general rule. See what to check in an offer letter and offer letter vs appointment letter.

The main types of leave

Many companies also have other leave types:

• Public or national holidays: a fixed list published each year, sometimes with optional or restricted holidays you can choose from.
• Maternity and paternity leave: maternity leave is governed by law; paternity leave depends on company policy.
• Comp off: a day off in return for working on a weekend or holiday, if your company offers it.

How leave accrues

Accrual means how your leave balance builds up. Common company approaches are:

• Upfront credit: CL and SL are credited at the start of the year or on joining, often pro-rated if you join mid-year.
• Monthly credit: EL is added each month, for example a fraction of a day for every month worked.
• Credit after a period: some policies only start EL after probation or after a set number of days worked.

The law gives a minimum for covered workers. Under Section 32 of the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, a worker in an establishment covered by the Code who works 180 days or more in a calendar year is entitled to annual leave with wages at one day for every 20 days of work (for adult workers). The government's explainer notes this eligibility was earlier 240 days. Unused leave can be carried forward up to 30 days, and the worker can encash leave on demand at the end of the calendar year. The Code does not apply to Central and State government offices, except contract labour there.

Shops, offices and IT companies are also covered by their state's Shops and Establishments Act. For example, a summary of the Maharashtra Shops and Establishments Act, 2017 lists eight days of casual leave a year, 18 days of paid leave for those who have worked 240 days, and accumulation of paid leave up to 45 days. Other states set different numbers.

Leave during probation

Probation is where freshers most often get caught out. Common company rules include:

• Sick leave available from day one, because illness cannot be planned.
• Casual leave available but limited, or pro-rated.
• Earned leave credited monthly but only usable after probation, or not credited until confirmation.
• Long planned leave discouraged in the first few months, especially during training.

None of these is universal, so ask HR before booking a trip. Taking unapproved leave can be marked as loss of pay and may be noted in your probation review. Our guide to the probation period in India covers what else is assessed in this phase.

Leave encashment

Encashment means being paid for leave you did not use. Points to understand:

1. It usually applies only to earned or privilege leave, not CL or SL.
2. Some companies encash yearly above a minimum balance; others pay it only at full and final settlement when you leave.
3. There is often a cap on how many days can be encashed or carried forward.
4. The rate is usually based on your basic pay or salary as defined in the policy, not always your full CTC.

For covered workers, the OSH Code allows encashment on demand at the end of the calendar year. For everyone else, read your company's policy carefully, and check the leave balance on your full and final statement when you resign.

How to apply for leave the right way

1. Check your balance in the HR portal before you ask.
2. Talk to your manager first for planned leave, then apply in the system.
3. Give notice as early as possible, especially for EL and around project deadlines.
4. Arrange cover: hand over pending work and set an out-of-office reply.
5. For sick leave, message your manager in the morning and apply once you are able. Keep medical documents if the absence is long.

A short, clear email or chat message works well: "I would like to take earned leave from 14 to 18 November for a family function. My tasks are on track and Priya will cover the daily report." For more on tone, see office email etiquette, and our first week at a new job guide suggests reading the HR policy early.

Questions to ask HR in your first month

• How many CL, SL and EL days do I get this year, and are they pro-rated?
• Is EL credited monthly, yearly or after probation?
• Can I use leave during probation, and are there restrictions?
• What carries forward, what lapses and what is the cap?
• Is leave encashed yearly or only at exit?
• Where is the holiday list, and are there optional holidays?

Comparing leave before you join

Leave is part of your total offer, so it is worth comparing when you are choosing a job. On asuraa.in you can browse fresher jobs from companies verified before posting, with apply links checked every morning, and then ask about leave policy at the offer stage.

Frequently asked questions

What is the full form of CL, SL and EL?

CL is casual leave, SL is sick leave and EL is earned leave. Some companies call EL privilege leave (PL) or annual leave. Many companies also combine CL and SL into a single pool of paid or personal leave.

Can I take leave during my probation period?

Usually yes, but rules vary. Some companies let you use sick and casual leave from day one while crediting earned leave monthly or only after probation. Check your appointment letter and HR policy, and inform your manager early.

Does unused leave lapse at the end of the year?

Casual leave often lapses at year end under many company policies. Earned leave is commonly carried forward up to a cap. The OSH Code, for covered establishments, allows carry-forward of up to 30 days of annual leave.

Can I encash my leave as a fresher?

Encashment generally applies to earned leave. Some companies allow it yearly above a minimum balance; others pay it only when you leave. Under the OSH Code, covered workers can encash leave on demand at the end of the calendar year.

What happens if I take leave without approval?

Unapproved or excess leave is usually marked as loss of pay (LOP), meaning salary is deducted for those days, and it can affect your record during probation. Always apply in the HR system and get approval.