Can employees take leave while serving notice period? Rules, court rulings and exceptions
Employees can apply for leave while serving their notice period, but approval is not automatic and depends on applicable employment rules. Whether sanctioned leave can overlap with the notice period depends on the appointment letter, service rules, leave policy and court rulings.
- Aug 9, 2026,
- Updated Aug 9, 2026 9:15 AM IST
Employees in India can generally apply for leave while serving their notice period, but taking leave is not an automatic right. Whether the leave is permitted depends on the employment contract, service rules, leave policy, standing orders and applicable law, according to an analysis published by Labour Law Reporter (LLR) in August 2026.
Leave during notice period
The core principle is that an employee may request leave during the notice period, but the leave generally needs to be sanctioned by the employer. Simply having unused leave in the employee's balance does not automatically entitle them to remain absent while serving notice.
LLR highlighted that employees should apply for leave in writing and seek approval. Silence or failure by the employer to respond should not ordinarily be treated as automatic approval. An employee who stays away without authorisation could face disciplinary consequences, including loss of pay or other action, depending on the applicable employment rules.
The position can differ where leave is protected by law or where specific service rules provide otherwise.
What happens to notice period?
A key issue is whether sanctioned leave can run concurrently with the notice period. According to LLR, the answer is generally yes unless the applicable contract, service rules or an express non-concurrency provision says otherwise.
The report cited the Ghanshyam v. DMRC (Delhi High Court, 2007) case, where the court held that if the notice clause does not prohibit leave, sanctioned leave during the notice period may ordinarily run concurrently with the notice period.
However, the Supreme Court took a different position in CAMPCO Ltd. v. B. Vishnu Murthy (2022), where service rules specifically provided that leave and notice could not run concurrently. In such circumstances, an employee cannot insist on overlapping the two.
Unauthorised leave
The distinction between sanctioned and unauthorised leave is critical. LLR noted that an employee who remains absent without approval could face disciplinary action.
Courts have also examined whether absence was wilful or caused by genuine circumstances. In State of Punjab v. P.L. Singla (2008), the Supreme Court observed that unauthorised absence or overstaying leave can constitute misconduct. At the same time, in Krushnakant B. Parmar v. Union of India (2012), authorities were required to consider whether absence was wilful, particularly where illness or genuine difficulties were involved.
Medical emergencies should therefore be supported by appropriate evidence and communicated promptly.
Contract and service rules
LLR also cited Shriram Manohar Bande v. Utkranti Samiti (2024), noting that special statutes may expressly prohibit overlap between leave or vacation and resignation notice. In Rajesh Kumar Balak Ram Chandrakar v. INFLIBNET (Gujarat High Court, 2022), the court considered the applicable public-sector rules governing whether leave could count towards the notice period.
The practical takeaway is that employees should not assume that unused leave can simply be adjusted against their notice period. They should check their appointment letter, standing orders, service rules and leave policy and obtain written approval.
Sanctioned leave may count towards the notice period where no rule prohibits it; unauthorised absence, however, can lead to disciplinary or other employment consequences.
Employees in India can generally apply for leave while serving their notice period, but taking leave is not an automatic right. Whether the leave is permitted depends on the employment contract, service rules, leave policy, standing orders and applicable law, according to an analysis published by Labour Law Reporter (LLR) in August 2026.
Leave during notice period
The core principle is that an employee may request leave during the notice period, but the leave generally needs to be sanctioned by the employer. Simply having unused leave in the employee's balance does not automatically entitle them to remain absent while serving notice.
LLR highlighted that employees should apply for leave in writing and seek approval. Silence or failure by the employer to respond should not ordinarily be treated as automatic approval. An employee who stays away without authorisation could face disciplinary consequences, including loss of pay or other action, depending on the applicable employment rules.
The position can differ where leave is protected by law or where specific service rules provide otherwise.
What happens to notice period?
A key issue is whether sanctioned leave can run concurrently with the notice period. According to LLR, the answer is generally yes unless the applicable contract, service rules or an express non-concurrency provision says otherwise.
The report cited the Ghanshyam v. DMRC (Delhi High Court, 2007) case, where the court held that if the notice clause does not prohibit leave, sanctioned leave during the notice period may ordinarily run concurrently with the notice period.
However, the Supreme Court took a different position in CAMPCO Ltd. v. B. Vishnu Murthy (2022), where service rules specifically provided that leave and notice could not run concurrently. In such circumstances, an employee cannot insist on overlapping the two.
Unauthorised leave
The distinction between sanctioned and unauthorised leave is critical. LLR noted that an employee who remains absent without approval could face disciplinary action.
Courts have also examined whether absence was wilful or caused by genuine circumstances. In State of Punjab v. P.L. Singla (2008), the Supreme Court observed that unauthorised absence or overstaying leave can constitute misconduct. At the same time, in Krushnakant B. Parmar v. Union of India (2012), authorities were required to consider whether absence was wilful, particularly where illness or genuine difficulties were involved.
Medical emergencies should therefore be supported by appropriate evidence and communicated promptly.
Contract and service rules
LLR also cited Shriram Manohar Bande v. Utkranti Samiti (2024), noting that special statutes may expressly prohibit overlap between leave or vacation and resignation notice. In Rajesh Kumar Balak Ram Chandrakar v. INFLIBNET (Gujarat High Court, 2022), the court considered the applicable public-sector rules governing whether leave could count towards the notice period.
The practical takeaway is that employees should not assume that unused leave can simply be adjusted against their notice period. They should check their appointment letter, standing orders, service rules and leave policy and obtain written approval.
Sanctioned leave may count towards the notice period where no rule prohibits it; unauthorised absence, however, can lead to disciplinary or other employment consequences.