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Leave management is an essential part of core HR responsibilities. This article will help you if you have any questions about managing leave.
This blog will cover everything you need to know regarding leave management. So let’s get to the point.
What is a Leave Management System or Leave Management System?
It can be used to record, track and manage employee requests for time off. It has two primary purposes. It helps employees to manage their leave requests objectively, and it protects the company from employee absences.
If you continue to use Excel spreadsheets and email forms to record employee leave, you could be in for a disaster. There are many possible errors in payroll processing, legal compliances or employee crunch.
A well-designed leave management system can give you a single view of all your employees and help save time and headaches. Payroll is one example. It synchronizes holiday shift times and employee leaves with payroll to automate payroll processing.
Before we go on, let’s take a look at Indian leaves.
Different types of leaves
Many types of leaves available can be ordered and supplied by the company.
- Earned & Privileged Leave (EL)
These leaves are available to employees who work for an organization for a specified period. For example, one EL is offered by some companies for 23 days. Employees can use these leaves without salary reductions if the management approves them. In addition, you can combine this leave.
- Casual (CL) Leave
These leave are only for a short time and must be approved by management in writing. An employee can only take seven days of casual leave at a time.
- Sick Leave (SL)
An employee may ask for leave if they are ill and unable to work. Employees who have been sick for a prolonged period may need to present a medical certificate.
- Leave Without Pay (LWP)
Employees who use all of their leaves but still require more will lose their wages. If the leave policy permits, employees can alter these leaves to match their future leaves.
- Compensatory Off or Comp off
Workers on holiday are entitled to more time off than they earned.
- Maternity leave (ML)
Indian women workers are entitled to 26 weeks of paid parental leave if they work less than 80 days during the 12 months before delivery. However, after the birth, the eligibility for the second child is reduced to 12 weeks.
- Marriage Leave
In India, it is illegal. Employees can be granted up to 15 days of leave. Most companies offer three-day marital leaves. Only employees who are married in their first marriage can apply for this leave. It is usually granted to one employee by most companies.
- Leave for Paternity
This type of leave allows the father to take care of his newborn child and his mother. The leave entitlement can vary depending on the company policy. It may be between 2 and 4 weeks.
- Bereavement Leave
An employee can take this leave if a family member has died. Employees can use this leave to grieve, participate in the last rites and manage their personal affairs. The leave entitlement can vary depending on the company policy. It may be between 2 and 20 working days.
What does a leave management system serve?
For many reasons, leave management is essential for any company.
- Follow the law
Keep track of all employees paid for time off within a given period. This information is necessary to comply with state requirements.
- Record keeping
It is essential to keep track of how many days you have taken off and what balances are remaining to create and maintain a leave plan. In addition, this record can be used by employees to track their leave entitlements.
- Business planning
It is vital to ensure that business operations are not affected by the absence of certain employees. Administrators can use the leave tracker to determine whether to approve or deny leaves based on available resources.
- Analytics Reporting
This gives a comprehensive view of leaf trends and their effect on the operation. These reports can be used to gain valuable insights or make recommendations.
Management challenges for leave
Companies are most vulnerable when they don’t have a modern leave management program.
- Monitoring of leaves
Software that manages leave must track the leaves. It is not easy. Managers may find it difficult to track employee attendance and leave using paper and sheets while still being able to complete essential business operations.
Inadequately tracking leaves can lead to staff shortages, increased workload, or even business losses.
- Payroll processing error
Without proper leave management, it isn’t easy to process payroll processing accurately. Poor leave management can lead to mistakes in payroll processing. To accurately calculate compensation, it is essential to keep track of the leave taken by employees.
Payroll integrated its online payroll and leave management systems to ensure employees receive their correct salaries.
- Communication
Many companies fail to communicate appropriately with their employees about leave policies and entitlements. This can lead to frustration, dissatisfaction, confusion, and frustration among employees. Employees have the right to be informed about leave and benefits policies.
Routine administrative tasks for leave management
Let’s look at the day-to-day activities of an administrator involved in leave management.
Based on your office’s location, create a holiday plan. To ensure employee well-being, create leave types. Layout pro-rated leave policies based on days or months or any other round-off.
Decide whether or not you would like to combine weekends with holidays and the leaves. You have the option to accrue leave weekly, monthly, or annually. Determine the compensation time for weekend and holiday work if possible. The absolute Guide to India’s Leave Management System.
For customizations that require approval, multiple criteria may be used. Employees can create extended attendance and leave reports.