Leave Management That Follows Indian Labour Law

Leave disputes are the #1 HR grievance in Indian companies

An ambiguous leave policy is a source of constant conflict. When employees don't know how many days they have, what type they're using, or what the approval process is — every leave request becomes a negotiation. Proactiq's leave management eliminates ambiguity by making balances, policies, and approvals transparent and automatic.

Setting up leave types

Go to HR & People → Leave → Leave Types → New type. Set up the standard Indian leave structure:

• Casual Leave (CL) — Short-notice, discretionary. Typical allocation: 12 days/year. Accrued monthly or granted upfront.
• Sick Leave (SL) — Health-related absences. Typical: 12 days/year. Requires medical certificate for 3+ consecutive days.
• Earned Leave / Privilege Leave (EL/PL) — Accrued based on days worked. Under the Factories Act: 1 day per 20 days worked. Under the Shops & Establishments Act: varies by state.
• Maternity Leave — 26 weeks for first two children (Maternity Benefit Act, 2017). Non-negotiable statutory entitlement.
• Paternity Leave — No central mandate; check your state's S&E Act. Best practice: 5–15 days.
• Loss of Pay (LOP) — Used when all paid leave balances are exhausted. Salary is deducted proportionally.

The leave approval workflow

When an employee submits a leave request:

1. They go to HR & People → Leave → Apply leave. Select type, dates, and reason.
2. Their assigned manager receives an immediate notification.
3. Manager approves or rejects with an optional comment (e.g., "Project deadline conflict — can you reschedule by 2 days?").
4. Employee receives an email with the decision and, if approved, their updated leave balance.
5. Employee's status in the system automatically changes to On Leave on the first day of the approved leave period.