24 Jan 2026•6 min read

A Simple Leave Policy for Startups (Copy/Paste Template)

Most startup founders procrastinate on leave policies until someone asks "can I take next week off?" and there's no clear answer. Then you scramble to write something, over-engineer it, and end up with a policy nobody reads.

This guide gives you a ready-to-use leave policy template designed for teams under 50 people. It covers the essentials, avoids bureaucracy, and keeps everyone aligned on what leave means at your company.

TL;DR Answer

A simple startup leave policy should do three things: (1) clearly define leave types (annual leave, sick leave, unpaid leave, compassionate leave, and statutory leave), (2) set a lightweight request/approval workflow with reasonable notice periods, and (3) make balances and approvals transparent so teams can plan work and avoid last-minute delivery gaps.

Q: What leave types should a startup policy include?

A: Start with five core types. Any more than this and you're creating admin overhead you don't need yet.

Leave Type	Purpose	Typical Allowance	Notice Required
Annual Leave	Holidays, rest, personal time	25-28 days/year (UK: min 28 days)	2 weeks
Sick Leave	Illness, medical appointments	10 days/year (or unlimited with manager discretion)	None (notify ASAP)
Compassionate Leave	Bereavement, family emergency	3-5 days/incident	None (notify ASAP)
Unpaid Leave	Extended travel, personal reasons	Manager approval required	1 month
Statutory Leave	Maternity, paternity, parental, jury duty	Per local law	Per local law

UK Context:

In the UK, statutory paid holiday entitlement is 5.6 weeks (28 days for a 5-day worker). This can include bank holidays. Most startups offer 25 days plus 8 bank holidays to stay competitive.

Ireland Context:

In Ireland, most employees are entitled to four working weeks annual leave per year (20 days for a 5-day week). Public holidays are separate.

Q: How should allowances be structured?

A: Keep it simple. Most startups under 50 people don't need complex accrual rules. Use fixed annual allowances and adjust individually if needed.

Model	How It Works	Best For
Fixed Annual	Everyone gets 25 days on Jan 1, resets yearly	Startups under 30 people, simple to track
Accrual (Monthly)	Earn 2.08 days/month (25 days / 12)	Teams with frequent mid-year joiners
Pro-Rata	New joiners get proportional allowance based on start date	Fair for high-growth teams
Unlimited	No cap, manager approval required	High-trust cultures (but can backfire if unclear)

Recommendation: Start with Fixed Annual for the first year. It's the easiest to explain, track, and audit. Move to accrual only if you're hiring 5+ people per month.

Q: Why does leave policy matter for team health?

A: Burnout and overwork have measurable health and performance consequences. A clear leave policy encourages people to actually take time off.

Research Finding (WHO/ILO):

Working 55+ hours per week is associated with a 35% higher risk of stroke and 17% higher risk of dying from ischemic heart disease compared to 35-40 hour weeks. The same study found 745,000 deaths in 2016 from heart disease and stroke linked to long working hours.

Burnout Prevalence (Gallup):

Three in four employees experience burnout at least sometimes; one in four experience it very often or always. Clear leave policies with predictable time off help prevent chronic burnout.

Vacation and Performance (HBR):

EY analysis cited in Harvard Business Review found that for each additional 10 hours of vacation employees took, their year-end performance ratings improved by 8%. Encouraging leave isn't just good for people - it's good for results.

Q: What approval workflow should startups use?

A: Keep it lightweight: employee requests, manager approves/declines, HR (or founder) has visibility. That's it.

Step-by-step:

Employee submits request: Via leave management tool, Slack, or email (tool preferred for transparency)
Manager reviews: Checks team calendar, workload, and deadlines
Manager approves or declines: Within 48 hours; if declined, suggest alternative dates
Confirmation sent: Employee gets email/notification
Calendar updated: Shared team calendar shows who's off

Can managers decline leave? Yes, but only for valid business reasons (e.g., peak season, too many team members already off, insufficient notice). Document the reason and suggest rebooking.

Q: What notice periods should we require?

A: Balance flexibility with planning needs:

Annual leave: 2 weeks notice (allows managers to adjust workloads)
Sick leave: No notice required (notify manager ASAP)
Compassionate leave: No notice required (notify manager ASAP)
Unpaid leave: 1 month notice (major planning impact)

Exception: Emergency situations (sudden illness, family crisis) override notice requirements. Use manager discretion.

Q: How do we track leave without creating admin overhead?

A: Spreadsheets break down around 10-15 people. At that point, use a simple leave management tool that handles requests, approvals, balances, and calendar views automatically.

What to look for:

Request/approval workflow built-in
Automatic balance tracking (days used vs remaining)
Team calendar view (who's off when)
Email notifications
Mobile access (employees request leave from phones)

If you're looking for predictable costs, flat-fee tools remove per-seat pricing complexity as you grow.

One-page Slack/Notion template

Copy/paste this into your team Slack or Notion:

Leave Policy (Effective 2026)
Leave Types:
Annual Leave: 25 days/year (reset Jan 1)
Sick Leave: 10 days/year (notify manager ASAP)
Compassionate Leave: 3-5 days/incident
Unpaid Leave: Manager approval required
Statutory Leave: Per UK/Ireland law
Notice Period:
Annual leave: 2 weeks
Sick/Compassionate: None (notify ASAP)
Unpaid: 1 month
Approval:
Submit via [Tool Name]
Manager approves within 48 hours
Check team calendar before booking
Questions? Ask your manager or HR.

FAQ

What's the simplest leave policy a startup can use?

Define 4-5 leave types (annual, sick, unpaid, compassionate, statutory), set a clear allowance (e.g., 25 days annual leave), require 2 weeks notice for planned leave, and use a simple request/approval workflow. Document it in one page and share it on Slack or Notion.

How many annual leave days should a startup offer?

In the UK, the statutory minimum is 28 days (5.6 weeks) for full-time workers. Many startups offer 25-28 days to stay competitive while meeting legal requirements. In Ireland, the minimum is 4 working weeks (20 days for a 5-day week).

Can managers decline leave?

Yes, if there's a valid business reason (e.g., peak season, too many team members already off, or insufficient notice). The policy should state this clearly and suggest rebooking rather than outright rejection.

Do we need accrual rules from day one?

No. Most startups under 20 people start with simple annual allowances and add accrual logic later if needed. Accruals are more important for larger teams or regulated industries.

What notice period should we require?

2 weeks for planned leave, no notice required for emergency sick leave. This gives managers time to adjust workloads and prevent delivery gaps.

Is a spreadsheet enough?

For tiny teams (under 5), maybe. Beyond that, spreadsheets create version conflicts, manual balance tracking errors, and unclear approval status. Simple leave management software pays for itself quickly.

How do we prevent last-minute leave from hurting delivery?

Enforce the notice period policy (e.g., 2 weeks) and use a tool that shows a 2-4 week forward calendar view. Managers should check team capacity weekly and flag conflicts early.

What about teams in multiple countries?

Set a baseline policy that meets the highest local standard, then add country-specific overrides for statutory leave and public holidays. Document each country's rules clearly.

References

Last updated: 24 Jan 2026