A leave policy is the written document that turns “how leave works here” from tribal knowledge into something every employee can actually check. Without one, leave ends up decided inconsistently, manager by manager, which is where most leave-related disputes actually come from.

What it needs to cover

A working leave policy defines each leave type available (earned, casual, sick, maternity, and any discretionary categories like bereavement or sabbatical), how each accrues, whether it carries forward and up to what cap, the application and approval process, notice periods for planned leave, documentation requirements for sick leave, and how the company handles disputes or edge cases like leave during probation.

Frequently asked questions

Does a leave policy need to be reviewed every year?

Reviewing it periodically is worth doing, especially given how much labour law has shifted recently with the new Labour Codes affecting leave carry-forward and encashment rules.

Should the leave policy be part of the employee handbook?

Yes, typically. See our guide to what an employee handbook should cover for where leave policy fits alongside other core documentation.

Track leave against the policy with the Leave Balance Calculator.