Unlimited Leave Policy


Does anyone have unlimited leave policy? I would like to know more about the implementation. The law states you need to provide certain number of Privilege leaves ,carry forward upto 45 and encash the unused ones when the employee leaves the organisation. How does this work with unlimited leaves?


Hello Mahesh,

Unlimited leave policy depends on the organization’s perspective.

The laws prescribes the minimum threshold of holidays under certain categories to ensure that the employer provides it reasonably. However, if the employer is open to provide more holidays than that, the law doesn’t stop the employer from doing it so.

I came across an article some time ago regarding this -


May be of some help to you to get an idea about this.

Our other community members too would pitch in their valuable inputs here.

Bhuvana Anand

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Hi Bhuvana,

Thanks for the reply.

My concern is more on leave encashment. Will unlimited leaves exempt me from leave encashment? Since on the HR portal we will have to show that the company provided leaves as per the statutory compliance.



Generally the organizations that implement unlimited leave / uncapped leave policies, does not accumulate the leaves to carry forward the next year which in turn removes the scope of its encashment.

In my opinion, carving out any such policy is based on the organization’s experimental interest, in-depth study and consultation with subject matter experts.

Bhuvana Anand