Sick Leave Policy Template with Medical Certificate Rules

A sick leave policy gives employees paid time off when they are unwell and sets the rules around it: how sick leave is credited, how quickly the manager must be told, when a medical certificate is needed and what happens during a long illness. It protects employees who are genuinely ill and gives managers a fair basis for questioning patterns. The common leave rules sit in the leave policy.

When to use it: Adopt it with your first set of leave rules, when sick leave is being taken without any documentation, or when a long illness raises questions about pay and job security. The HR head signs off the draft prepared by HR, and the certificate rules are explained to every new joiner at induction.

Sick leave policy template

Copy the text below and replace everything in square brackets with your company details.

1. Purpose

This policy provides paid sick leave to employees of [Company Name] who cannot work because of illness or injury, and sets out how sickness is reported, documented and managed.

2. Scope

It applies to all employees. Employees covered under ESI may also be eligible for benefits through ESI during certain illnesses, and HR helps them with the claim.

3. Entitlement

Each employee receives [6] days of sick leave in a leave year, credited at [half a day per month].
Unused sick leave is carried forward up to a maximum balance of [24] days.
Sick leave is not encashed during service or at exit.
Sick leave is available from the first month of service, including during probation.

4. Reporting sickness

The employee, or a family member if the employee cannot, informs the reporting manager before the shift starts or within [2] hours of its start.
The employee applies for sick leave in the leave system on the day of return, or earlier if the absence continues.
During a longer illness, the employee updates the manager every [3] days.

5. Medical certificates

Sick leave of more than [2] consecutive days needs a certificate from a registered medical practitioner.
HR may ask for a certificate even for one day when sick leave falls next to a weekly off, holiday or other leave.
After an absence of [7] days or more, or after hospitalisation, the employee gives a fitness certificate before resuming work.
Where there is a genuine doubt, the company may ask the employee to see a doctor it nominates, at the company's cost.

6. Long illness

Once sick leave is exhausted, the employee may use earned leave and casual leave, and then leave without pay under the Leave without pay policy.
For an illness lasting more than [30] days, HR discusses support with the employee, such as extended unpaid leave, reduced hours on return or a temporary change of duties.
No employee's service is ended because of illness without a fair review of medical advice and alternatives.

7. Confidentiality

Medical information given to the company is kept confidential by HR and shared with the manager only as far as needed to plan work.

8. Misuse

Using sick leave for non-medical purposes, or supporting it with a false certificate, is misconduct under the Disciplinary action policy.

9. Responsibilities

Employees: report sickness on time and submit certificates when required.
Managers: accept genuine sick leave without pressure and raise repeated short absences with HR.
HR: credit sick leave, keep medical documents securely and support employees through long illness.

10. Review

HR reviews sick leave usage and the certificate rules each year, and adjusts them if short sick absences cluster around weekends or holidays.

What to include

Informing the manager early

Set a clear deadline for reporting sickness, such as before the shift starts. Early notice lets the manager arrange cover, which matters in a store, ward or plant far more than the leave itself.

Certificate thresholds

Say after how many days a medical certificate is needed and when a fitness certificate is required to return. A threshold such as more than two days balances trust with control.

A carry-forward cap

Let sick leave build up to a cap so employees have a cushion for a serious illness later. The cap stops balances from growing without limit over a long career.

ESI-covered employees

Employees covered under ESI may receive sickness benefits through ESI. Explain how company sick leave and ESI work together, and check ESI applicability for your establishment.

A plan for long illness

Describe what happens when sick leave runs out: other paid leave, leave without pay and support on return. Employees facing surgery or long treatment need to know where they stand.

Confidential medical records

Keep certificates and diagnoses with HR, not in team chats or email threads. Managers need to know how long someone will be away, not the details of the illness.

Common mistakes to avoid

Demanding a medical certificate for every single day of sick leave.
Lapsing sick leave every year, so employees have nothing saved for a serious illness.
Sharing an employee's diagnosis with the team without consent.
Allowing a return after surgery or a long illness without a fitness certificate.
Ignoring a pattern of single sick days before and after weekends.

Run it in ZeniaHR

Sick leave is a default leave type in the ZeniaHR Leave Ledger, credited at 0.5 day a month by default and capped at a maximum balance. The leave rules for SL can require a document after N days and allow back-dated applications, so an employee returning from illness can apply for days already taken. Medical and fitness certificates are kept in the employee's documents, and the Leave Calendar shows who is away sick when managers plan cover.

Leave management Employee documents

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Frequently asked questions

How many sick leaves are allowed in a year in India?

There is no single national figure for all employers. Your state's Shops and Establishments rules or your standing orders may set a minimum, and companies can give more. Fix a clear number in the policy, for example 6 days a year credited at half a day per month, with a carry-forward cap.

When is a medical certificate required for sick leave?

Your policy decides. A usual rule asks for a certificate from a registered medical practitioner when sick leave runs beyond two consecutive days, and a fitness certificate before returning after a long illness or hospitalisation. HR may also ask for one when sick leave falls next to weekends or holidays.

Can sick leave be carried forward?

Yes, if the policy allows it. Carrying sick leave forward up to a cap gives employees a reserve for surgery or a serious illness later in their career. Sick leave is usually not encashed, because its purpose is protection during illness rather than extra pay.

What happens when an employee's sick leave is exhausted?

The employee can use other paid leave, such as earned leave, and then leave without pay. For a long illness, HR should discuss options such as extended unpaid leave, reduced hours or lighter duties on return, and check whether ESI benefits apply if the employee is covered.