My current company has not bifurcated leaves under different heads like Casual Leave, Sick Leave and Paid Leave. We give specific number of leaves to every employee and they need to avail these leaves in a year - 10 can be carried forward and remaining would be lapse.
Is this the correct policy to follow?

It depends on the industry you work. If you are working in Factories, Mines and you engage the Contract Labour, then you will have to give 1 day leave for every completed 20 days worked by the employee.
For other employees, the company policy will stand good and it will be fixed by the HR after obtaining sanction from the Management.

From India, Kumbakonam

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