Casual Leave (CL) in India
Last updated: 13 July 2026. General explainer, not legal or tax advice.
What casual leave is for
Casual leave, or CL, is short notice paid leave for personal needs, such as a family errand or a brief illness. It is meant for odd days off, taken a day or two at a time, rather than for a planned holiday. It is one of the everyday leave types most Indian workplaces offer.
How much, and who decides
The entitlement is set by the state Shops and Establishments Act and the company leave policy, so it varies by state and employer and there is no single national number. The policy usually states how many casual leaves a year the employee gets and how they may be taken.
The rules that often apply
Casual leave usually cannot be carried forward, so it lapses at the year end, and it is generally not encashable. Many policies also cap how many casual leaves can be taken together, or bar clubbing them with other leave beyond a limit, to keep it to its short notice purpose.
Casual, earned and sick leave
Casual leave sits between the other common types. Earned leave accrues and carries forward and can be encashed. Sick leave is for illness and may need a certificate. Casual leave is the quick, use it or lose it option for a day here and there.
Writing casual leave into your policy
Because casual leave is set by the state Act and the company, a short written policy settles the everyday questions, how many days a year, how much notice, whether it can be taken back to back, and whether it can be clubbed with other leave. Without that, casual leave becomes a case by case negotiation that feels unfair the moment two employees are treated differently.
The policy also decides what happens to unused casual leave at year end. Since it usually does not carry forward or encash, saying so plainly avoids an expectation that it will.
Worked example
An employee needs a day for a family matter and applies for one casual leave. It is approved, deducted from the casual leave balance, and paid, so the day off does not reduce that month's salary.
Related terms
Frequently asked questions
What is casual leave used for?
Short personal needs, such as a family matter or a brief illness, taken usually a day or two at a time.
How many casual leaves are allowed in India?
There is no single national number. It is set by the state Shops and Establishments Act and the company policy, so it differs by state and employer.
Can casual leave be carried forward?
Usually not. Casual leave typically lapses at the year end and is not encashed, unlike earned or privilege leave.
Can casual leave be clubbed with other leave?
Often only within a limit. Many policies cap how casual leave combines with other leave, to keep it to its short notice purpose.
Is casual leave paid?
Yes, casual leave taken against an available balance is paid and does not reduce that month's salary.
What should a casual leave policy cover?
How many days a year, the notice needed, whether it can be taken back to back or clubbed with other leave, and what happens to unused days at year end.
Does casual leave carry forward at year end?
Usually not. It typically lapses and is not encashed, which the policy should state plainly to avoid a wrong expectation.
Sources and official references
The rules and figures on this page trace to the official sources below. Statutory amounts and dates change, so confirm the current number on the source before you act on it.
How Offrd helps
Offrd tracks leave types and balances, so casual leave is applied, approved and reflected in pay without a spreadsheet.