From carer’s leave to sabbaticals, India Inc expands leave policies to match changing workforce demands

India Inc. is reimagining leave policies as Gen Z becomes a dominant part of the workplace. HR experts told Storyboard18 that the rise of remote and hybrid work, the pressure of employer branding, inclusivity goals, and the growing mental health awareness have also fueled the shift.

Several new-age companies are rolling out women-centric, caregiving, and even pet-focused policies, apart from the traditional categories like sick leave, casual leave, or unpaid time off, to reflect changing employee needs.

"Policies now focus on hybrid flexibility, wellness and mental health support, unique leave types (pets, caregiving, bonding), real-time recognition, and career growth mapping. Companies are also introducing systems to prevent burnout, such as alerts for overworking," said Sarbojit Mallick, co-founder, Instahyre.

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Earlier this month, beverage major Diageo introduced a 'Carer's leave policy' offering employees up to five paid days annually to look after loved ones needing support due to age, disability, or chronic illness. As part of these reforms, Shilpa Vaid, CHRO, said the initiative ensures employees don't have to choose between family and career.

It's not just private players making changes. Reflecting this trend, governments are also introducing employee-friendly policies. Union Minister of State for Personnel Sumitra Balmik stated that Central government employees can now take up to 60 days annually for elderly care--30 days of Earned Leave, 20 days of Half Pay Leave, 8 days of Casual Leave and 2 days of Restricted Holiday.

According to experts, company size and leadership philosophy remain key determinants shaping leave policy reforms. For instance, an extreme workaholic founder may hesitate to approve extended leave options, while smaller firms with under 50 employees often prioritize output over new leave structures during growth. In contrast, larger, established firms have started adopting such reforms recently.

Eternal, formerly known as Zomato, introduced 10 days of annual period leave along with 26 weeks of flexible parental leave that can be availed over three years--covering biological, adoptive and surrogate parents.

"Benefits should not be a ticking. They should make people feel the company has their back - whether raising a child, managing health, caringiving, or simply needing time for themselves," Niharika Mohanty, Vice President - HR, Eternal.

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Rival Swiggy Ltd has rolled out 'Pet and adoption leave', granting employees an additional paid day off (in addition to their annual leave entitlement) to welcome their new companion to their home. The policy allows pet parents to work from home during the settling-in period and use casual or sick leave for their pets' needs. The Bengaluru-based firm has also introduced ‘Mom’entum 2.0, a multi-year program designed to support mothers at all stages.

Plum Insurance has introduced a sabbatical policy for employees who have been part of the company for at least two years of tenure. "The duration of the sabbatical grows with tenure, up to three months. While unpaid, we ensure continued health coverage and role assurance on return. We see this as an investment in our people, who return with renewed energy, perspective, and commitment," said Priya Sunil, VP, People Success at Plum.

Mallick added that leave policies and support initiatives are evolving "well beyond just more paid leave” into personalized benefits, mental health support, flexible work, and burnout prevention. Such moves are valued by employees than incremental salary hikes, he said.

'The impact'

Research highlights that engagement, balance, and well-being policies directly reduce attrition. Rajesh Bharatiya, CEO & Founder, Peoplefy, said such benefits show inclusion, empathy, and modern workplace values, especially relevant for Gen Z/millennials. Companies that invest in such initiatives report lower turnover rates and stronger talent attraction compared to those relying mainly on salary increments.

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The Deloitte-NASSCOM India Tech Compensation Benchmarking Survey 2024 echoed this, finding that initiatives like well-being days and unlimited sick leave are increasingly common as organizations work to reduce attrition and improve employer appeal.