Free template

Free leave policy template for small teams

A leave policy says how much paid time off each person gets, which days are public holidays, how sick leave works, how to request time off, who approves it and what happens to unused days. This one covers each, with blanks for your numbers. It is not legal advice: minimum leave is set by law and varies.

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When to use it

Write it before the first person asks for a week off. A policy agreed in advance is fairer than a decision made case by case, and it is the first thing a new hire looks for.

  • Hiring your first employees and agreeing what time off they get

  • A team spread across countries with different public holidays

  • Replacing "just tell me in chat" with a record of who is away

  • Settling how unused leave carries over before the year ends

The template

The complete template

Everything below is included when you copy or download it. Replace the [bracketed] blanks and delete the guidance lines as you go.

[Company] leave policy

Not legal advice. Minimum annual leave, sick pay, public holidays and what happens to unused leave are set by law in most countries and differ between them. Where the law gives someone more than this policy, the law applies. Check each number against the law where each person works. Replace everything in [brackets].

01Who this covers

Say who the policy is for, which year it counts in, and who keeps it up to date.

  • Applies to: [All employees. Part-time employees receive leave pro rata to their hours. Contractors are not covered.]
  • Leave year: [1 January to 31 December / another 12-month period]
  • Effective from: [Date]
  • Policy owner: [Name and role of the person who maintains it]

02Leave at a glance

The summary people will come back to. Every figure must meet the legal minimum where the person works.

Everyone covered by this policy is entitled to the leave below. Details for each type follow.

TypeAllowancePaidNeeds approval
Annual leave[n] working days a yearYesYes
Sick leave[n days at full pay, then as the law requires]YesNo, tell your manager
Public holidays[The holidays of the country you work in]YesNo
Parental leave[As the law requires / your enhanced policy][Yes / Partly]Yes
Unpaid leave[By agreement]NoYes

03Annual leave

The paid time off people plan around. Be exact about joiners, part-timers and half days.

  • Allowance: [n] working days in each leave year, in addition to public holidays
  • Joining or leaving part-way: Allowance is pro rata for the part of the year you are employed, rounded to the nearest half day
  • Part-time: Allowance is pro rata to your contracted hours
  • Half days: Leave can be taken in half days, mornings or afternoons
  • Notice: Request leave at least [n] working days ahead for [n] days or fewer, and [n] weeks ahead for longer
  • Busy periods: [Dates when leave is normally not approved, or delete this line]

04Sick leave

Make it easy to be sick without asking permission, and keep health details private.

  • Tell us: Let your manager know before [time] on your first day off, or as soon as you reasonably can
  • Pay: [n] working days a year at full pay, then [statutory sick pay / unpaid / as the law requires]
  • Evidence: [A doctor's note after [n] consecutive days, where the law allows us to ask]
  • Recording: Sick days can be recorded after the fact when you are back
  • Privacy: The reason for sick leave is seen only by you and the people who approve your leave

05Public holidays

With a team in more than one country, say whose holidays apply.

  • Which holidays: You get the public holidays of the country you work in. The list for each year is published by [date / the policy owner].
  • Working on a holiday: [A day off in lieu taken within [n] weeks / extra pay / as the law requires]
  • Holidays during leave: A public holiday that falls inside your annual leave is not counted against your allowance

06How to request leave

One place to ask, so nothing is agreed in a hallway and forgotten.

  • Where: Request leave in [your HR tool / an email to your manager], not in chat
  • What to include: The type of leave, the first and last day, and any half days
  • Reason: Optional for annual leave. If you give one, only you and your approvers see it.
  • Before you ask: Check the team calendar for colleagues already away on the same days
  • Changing plans: You can withdraw a pending request at any time, and an approved one until it begins

07Approvals

Name who decides, how fast, and how clashes are settled. Founders need an approver too.

  • Approver: Your manager. If they are away, [a founder / another named person].
  • Founders and managers: [Who approves the leave of founders and managers]
  • Response time: Requests are answered within [n] working days
  • Clashes: No more than [n] people from [team] are off on the same day. Where requests clash, [the first request made / a rota for busy periods] decides.
  • Cancelling approved leave: The company cancels approved leave only in exceptional circumstances, and [reimburses costs you cannot recover]

08Carry-over and unused leave

Decide this before the end of the first leave year. Many countries restrict carry-over and payment in lieu.

  • Carry-over: Up to [n] unused days carry into the next leave year. Days carried over are not carried again.
  • Use by: Carried-over days must be used by [date, or delete for no deadline]
  • Payment instead of leave: [Unused leave is not paid out while you are employed, except where the law requires it]
  • When you leave: Leave you have earned but not taken is [paid in your final pay / handled as the law requires]. Leave taken beyond what you earned may be [deducted from final pay where the law allows].

09Other leave

List only what you offer. Delete any line that does not apply, and check what the law requires.

  • Parental leave: [As the law requires / your policy, with pay]
  • Bereavement: [n] days paid for [close family, defined as …]
  • Public duties: [Jury service and similar, as the law requires]
  • Unpaid leave: By agreement with your manager, for up to [n] [days / weeks]

10Before you publish

Check each line, then share the policy with everyone it covers and keep a record that they have read it.

  • Every allowance meets the legal minimum in each country where someone works
  • Every person, founders included, has an approver
  • The policy matches the leave stated in offer letters and contracts
  • Carry-over and payment rules follow the law where each person works
  • Everyone covered has received it and acknowledged it

Atrix AI

Do this with Atrix AI

Atrix tracks leave the way this policy describes it: requests, balances and approvals, with the arithmetic done for you.

  • Set the policy once

    An owner sets the annual allowance, the carry-over cap, the weekend days and each person's country. Leave types (annual, sick, unpaid, parental, other) are each paid or unpaid and need approval or not; sick leave needs none by default. Public holidays come from a starter list for supported countries and can be edited.

  • Request and approve

    People request whole or half days. The form counts working days, skipping weekends and holidays, and shows the balance left. Owners, admins and anyone above the person in the reporting line can approve, with a warning when too many people are off, and approvers are reminded after two and five days.

  • Balances that keep themselves

    Each person sees days entitled, carried over, used, pending and remaining. Joiners get a pro rata allowance from their start date, and a signed offer letter sets their own leave days. Publish this policy in Atrix as a versioned policy that everyone acknowledges.

FAQ

Questions, answered

What should a leave policy include?

Who it covers and the leave year, the annual leave allowance, sick leave and pay, public holidays, other leave such as parental and bereavement, how to request leave, who approves it and how quickly, how clashes are settled, carry-over, and what happens to unused leave when someone leaves.

How many days of PTO should a small business offer?

At least the legal minimum where each person works, which differs widely between countries and is zero in some. Above that it is a choice about what you can afford and what helps you hire. Write the number in the policy and apply it to everyone the same way.

Should annual leave and sick leave be separate?

In most places, yes. Combining them into one PTO bank can push people to work while ill, and some countries require sick leave to be separate. This template keeps them apart: sick leave needs no approval and its reason stays private.

How does carry-over of unused leave work?

You let people move a limited number of unused days into the next leave year, often with a date by which they must be used. Many countries restrict carry-over or payment in lieu, so check the law before you set the cap.

Who should approve leave at a startup?

Usually the person's manager, with a named backup when they are away. Founders need an approver too, even if it is a co-founder, so that their time off is on the record like everyone else's.

Is this leave policy template legal advice?

No. It is a starting point in plain language. Leave entitlements are set by law and vary by country and sometimes by state, so check every figure before you publish it.

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