Importance of leave management system

Leave management is important because of a myriad of reasons. Few of the most

crucial ones are as follows-

Record keeping: It is hard to enforce or implement the leave policy without having a
record of leaves taken and remaining. Besides, paid leaves are an employee benefit
and it’s their right to know their leave balance, and entitlements. Keeping a record also
helps at the time of full and final settlement. Using mobile first HR solutions for
employees can also keep the workforce informed in real-time about their leave stats.

Reporting and Analytics: This is important for staying compliant and management.
It is difficult to get a holistic view and see the trend in leaves and attendance without a
time off management software. Companies using one can easily see the analytics and
take corrective or preventive measures, if needed.

Statutory compliance: Employers need to maintain record of paid leaves they have
given to their employees not just because it’s nice to have it, but because they need it
for compliance purpose. In most Indian states registers of these forms are kept. In
karnataka the form names are form F and form 14

Stop revenue leaks: If there is no track record, you can end up paying for the
absences, non completed work hours. Above all, there can be disagreements between
employees and the employer which is not good for brand image.

Smooth Business Functioning: While leaves are a benefit for the employees to use,
to ensure that they do not become a reason for business losses is the responsibility of
the approver, which is mostly the manager! A good way to go about this is to check
the roster and approve or reject leave as per the same. Clearly, if too many people will
be on leave from the same department on a given day, the work will get impacted

Benefits of leave management

The benefits of leave management are multiple, some of them are mentioned below-

● A more streamlined attendance and payroll process

● Better employee satisfaction and retention rate

● Ensure enforcement and consistency of leave policy

● Makes you better compliant with the employment laws

● The error count in attendance drops significantly

● Increases the productivity and efficiency Challenges in leave management

If you end up choosing an incompetent leave management system that is certainly not
the best fit for your requirements, you may end up facing the following challenges-

● Low productivity
● Poor customer service
● Lack of proper /holiday planning
● Low employee trust and motivation
● Low employee satisfaction
● Unauthorised absenteeism

Leave Policy

The paid leaves, holidays, and other things related to leave, time and attendance
management are something that every employee should be aware of and has the
right to know. To make the protocol crystal clear and available to all, rather than
communicating verbally once, it is documented. The elaborated document prepared
by the company explaining the number, types, and procedure to avail leaves is called
as ‘Leave Policy’. The elaborated document prepared by the company explaining the
number, types, and procedure to avail leaves is called as ‘Leave Policy’.

Importance of Leave Policy

Policies are being made to formalise a course or principle of action to be adopted by

the employees. Leave policy is important so that the employee know the what , when,
and how of the leave and benefits they are entitled to. It is there to make a balance
between productivity, performance and satisfaction. We suggest you map the relevant
leave policies to the new joiners from day first using the HCM software.

Benefits of Leave Policy

Some of the pervasive benefits of leave policy are as follows-

● Minimises the leave benefits abuse

● No chance of leave manipulations from employee or employer’s end

● Increases transparency and trust.

● Simplifies leave process through automation of encashment, lapsing, rollover,

restriction, holidays between leaves, accrual period and more

● Smooth and timely integration of leave requests with attendance and payroll
software and even timesheets.

Moving forward, we will look at the leave types, rules and other important inputs that
the leave policy requires…
Leave types you are offering Several leave types are deemed mandatory by the
company and several are being provided by the company as a caring gesture. Some
of the most common leave types that you should specifically talk about in your leave
policy are-

● Earned Leave (EL) or Privileged Leave (PL)

By definition, privilege leaves are earned leaves credited to employees by the

company. These leaves can be used for vacation, as rest-time, marriage leaves or in
case of medical emergencies. Since these leaves are long-term, you will have to apply
for a minimum of 3 days vacation, 7-14 days in advance.

● Casual Leave (CL)

Casual leave, also known as personal leave or discretionary leave, is a type of paid
time off granted to employees for personal reasons or unforeseen circumstances that
require their absence from work. It is a short-term leave option designed to provide
employees with flexibility and work-life balance.

● Sick Leave (SL)

an absence from work permitted because of illness or the number of days per year for
which an employer agrees to pay employees who are sick

● Compensatory Off Leave

Compensatory leave is paid time off given to employees in lieu of overtime pay for
hours worked beyond their standard work schedule.

● Bereavement Leave

Bereavement Leave is a paid leave policy granted by the employer in the situation
where an employee loses his/her family member, relative, spouse, children, sibling, or
any other relationship.

● Leave Without Pay (LWP)

Leave Without Pay (LWP) refers to a temporary period during which an employee
takes time off from work without receiving regular salary payments. It is typically
unpaid leave approved by the employer.

● Maternity Leave

All pregnant female employees are entitled to a maternity leave of 26 weeks for their
first and second child. Out of these, they can take up to 8 weeks of leave before the
delivery of their child. For the third or subsequent pregnancy, expecting mothers are
eligible to take maternity leave of 12 weeks.

● Restricted Leave

Restricted holiday means a holiday that is optional, and it is the discretion of the
employee whether they want to take leave on that particular day or not. Restricted
holiday is also called an 'Optional Holiday' and it is not mandatory to close the entire
office on that day.