Concept of Unlimited Leaves for Employees

Hi All,

We plan to introduce unlimited leaves. What would be the best practice to manage it?

No need to track leaves or provide encashment of leaves or carry forward such leaves. Is that the right way to run it?

Please suggest if there are more points to keep a check.


The first time, hearing this term - unlimited leaves.
As per statutory provisions, you have to track leaves (Shops, Factory rules), and hence leave tracking - crediting, availing, encashment, lapsing, etc. can not be avoided.
However, as a company practice, if you would like to allow employees to avail one day or all days at one shot, or carry forward all leaves, you can do that.
Not sure how does the organization takes care of the services when employees avail leaves at one shot.


Recently, the labour dept has passed an order restricting carry forward of leaves by 45 days only. How does that impact on this “Unlimited Leaves carry forward”?



Please note that Earned Leave is a compulsory one that has to be adhered to by Labor Laws.

Instead of saying Unlimited Leaves, ensure that employees avail the allotted leaves periodically so that work life balancing is in place and employees also enjoy it. Try to give them Holiday Destinations as R&R Program and they’ll still enjoy it (this can be performance linked).


Hi @MadhuPR

There is supposed to be an Annual Leave & Sick Leave for every employee and maternity for female employees which are by far the most common ones.

And your leave should fall in any one of these categories, and should be accumulated to enhance the opportunity of utilising it in bulk.

But to an extent leaves are not allowed to be carry forwarded and employee are supposed to take their leaves.

Even en-cashment of these basic number of leaves is against the law.

Happy that you want to think about employees and come up with such policies, but do consult the local governance once before.

For ref sharing a link: Leave Management Guide for HR Managers | What's Leave Management?


Unlimited leaves… subject itself is contradicting… How do you handle when an employee takes leave for 365 days. Be more elaborate for the term “unlimited leaves”

Leave tracks and leave encashment are mandatory as per S & E and Factories act.
It is not the right war to run.

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