What Is Casual Leave? Everything You Need to Know

What Is Casual Leave? Everything You Need to Know

12 August 2025

Some leaves are named, and the rest are called casual leaves. Hello HRs. Today, we are discussing our saviour, our personal emergency response specialist, the casual leave.

What Is Casual Leave?

Casual leave is a short-term leave granted to employees for personal, urgent, and unforeseen situations. It is usually pre-approved. It acknowledges that personal emergencies can require leave. It allows employees to attend family functions, regular health assessments, or take a break after a hectic schedule. Contrary to earned and sick leaves, casual leave is more spontaneous and unplanned.

Casual Leave in India

Casual leave is a key component of mental wellness initiatives in many progressive Indian companies. It silently respects the need to take a break and rejuvenate. Moreover, casual leave acts as an investment. It resolves the personal issues faced by employees. It encourages employees to take short breaks, maintaining work-life balance. Casual leave prevents burnout, absenteeism, and disengagement.

Is Casual Leave Mandatory in India?

In India, there is no centralised law for casual leave. Organisations under the Industrial Employment (Standing Orders) Act, 1946, are required to draft standardised service conditions that include their casual leave policy. The document is then approved and certified by the labour commissioner.

Moreover, in states, casual leaves are governed by the Shops and Establishments Act. Each state mandates the number of casual leaves permitted in a year. For example, Maharashtra mandates at least eight casual leave per year, while Delhi offers 12 for some specific sectors. Please check the applicability of the Act in your organisation.

Best Industry Norms

The industry norms for casual leave vary. In public sector undertakings (PSUs), employees generally have a casual leave of 8–12 days annually. Employees are entitled to 7–10 days of casual leave in private sector.

However, IT/tech companies provide casual leave in the form of flexi leave and wellness days.

Casual Leave Policy

A casual leave policy is a reflection of the respect an employer has for its employees and their lives beyond the workplace. Employees should be aware of their leave policy. It enables them to make well-informed decisions. They can work around the policy and enjoy their breaks.

Features of the Casual Leave Policy

A casual leave policy should be clear, transparent, and fair. The widely adopted and most common features of casual leave policy across the Indian workplace are as follows:

  • Eligibility—A casual leave policy includes all full-time employees. Sometimes companies also allow interns and temporary workers to avail themselves of casual leave benefits after a specified period.
  • Purpose—The purpose behind introducing casual leaves was to provide flexibility to employees. Casual leaves can be best suited for personal reasons, emergencies, and even as a wellness break.
  • Approvals—Casual leaves are generally pre-approved, except in uncertain situations. HR managers are now integrating casual leave portals in employee apps to simplify tracking and approvals.
  • Annual Entitlement—Casual leave policies should mention the number of casual leave that shall be allowed annually. Generally, it varies from 7 to 10 days per year.
  • Paid/Unpaid—Casual leave is generally a paid leave.
  • Carry Forward—Generally, casual leave (CL) cannot be carried forward to the next year, unlike earned leave (EL), which is typically accumulated and carried over.
  • Leave Encashment—By and large, leave encashment is not allowed for casual leave. Casual leave is short-term and only for emergencies. Employees are not allowed to monetise them.
  • Maximum Stretch—A casual leave policy can allow a casual leave for a maximum of 2 to 3 consecutive days. Any further extension may require additional approval and documentation.
  • Clubbing with other leaves—Casual leave can be clubbed with earned/privileged leaves, often after prior approval.

Casual Leave Reasons

Employees avail casual leaves for numerous reasons. Some of them are:

1.Family Function or Ceremony

An employee can attend a close relative’s wedding, anniversary, etc., by applying for a pre-approved casual leave.

2.Urgent Personal Errand

Any urgent personal errand, including bank work, documentation, legal meetings, etc., can fall under the category of casual leave.

3.Mental Health Day / Personal Well-being

Thanks to casual leave, employees get a break from the hustle and bustle of the workplace. It helps employees to rejuvenate and start afresh.

4.Home Emergency

The homes we live in can require repairs and renovations. At times, we need to pack, shift, and unpack. A casual leave assists in the same.

5.Official Government Work

Casual leaves are applicable for passport office visits, Aadhar updates, voter ID corrections, driving license renewals, etc…

6.Commute difficulties

An unexpected breakdown, heavy rains, or a metro strike can compel one employee to opt for casual leave.

7.Festivals and religious ceremonies

Employees generally attend rituals, fasting, Ganapati Puja, Gurunanak Jayanti, Eid, etc., on a pre-approved casual leave. It gives employees the choice.

8.Attending exams and workshops

Casual leave can be also used for attending external exams, certifications, or workshops.

9.Health checkups

Taking care of yourself, your parents, and your children is equally important. Casual leave can typically be used for regular dental, eye, or health checkups.

10.Parents' Duty

A parent does everything for their children. They attend parent-teacher meetings and fill out the admission forms for school, college, or university. Their guidance helps children at every stage of their lives, and employees, by and large, avail themselves of casual leave to attend to their parents' duty.

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