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Leave management is an important part of core HR responsibilities. This article will help you if you are new to leaving management or have any questions about how to make it a successful system.
This blog post will cover everything about leave management, including why it is so important, what types of leaves are available, and how to select the best leave management software for your company. Let’s get to the point.
What is a Leave Management System?
Leave management systems are used to record, manage, and track employees’ time-off requests. It has two main goals: to objectively manage employees’ leave requests and ensure that employees’ absences from work don’t negatively impact the business.
If you continue to use Excel sheets, email forms, or paper forms to record employee leave, you’re headed for disaster. This could be anything, from errors in payroll processing to legal compliances and employee crunch.
However, a good leave management system provides a single view of employee availability throughout your company and can save you all the hassles. Payroll is one example of a solution synchronizing employee shift times, holidays, and leaves with payroll to automate payroll processing.
Let’s now look at Indian leaves before we move on.
Different types of leaves
There are many types of leaves available that can be ordered by the government or provided by the company.
● Earned or Privileged Leave (EL)
These leaves are earned by employees when they work in an organization for a specific period. Some organizations offer 1 EL for 23 days. Employees can use these leaves without salary eductions, provided that they have received approval from management. You can also encumber this leave.
● Casual Leave (CL)
These leave are only for a short time and must be approved by the management. An employee can take up to seven days of casual leave at a time, although this number is subject to change between companies and industries.
● Sick Leave (SL)
If an employee cannot work due to illness, they can request leave. If sick leaves exceed a certain period, the employees might be required to present a medical certificate.
Razorpay, for example, is changing the name of sick leaves to “wellness leaves” to encourage employees to use their leaves for mental health. This is in response to the fact that many companies work remotely. Harshil Mathur, CEO and CoFounder.
● Leave without pay (LWP)
If employees use up all of their leaves but still require more, they will lose their pay and thus their name. If the leave policy permits, employees can adjust these leaves to their future leaves.
● Compensatory Off or Comp off
Employees who work on holidays are entitled to additional leave that is less than the number of holidays they worked. Each company has its policy on compensatory leave.
● Maternity Leave (ML)
Indian women workers are entitled to 26 weeks of paid leave during pregnancy if they work for less than 80 days in the 12 months preceding delivery. After the birth of the second child, eligibility drops to 12 weeks.
● Marriage Leave
In India, it is not a legal right. While employees may be granted leave for anywhere from one to fifteen days, most companies offer three days of marital leave. This leave is only available to employees who have been married in the first marriage (most companies) once per employee’s employment period.
● Paternity Leave
This is a type of leave that is granted to the father of a newborn child so that he can care for the infant and his mother. The leave entitlement can vary from 2 days to 4 weeks based on company policies.
● Bereavement Leave
This is a leave that an employee is entitled to when there is a family member who has died. It allows the employee to grieve, participate in the last rites and take care of personal affairs. The leave entitlement can vary from 2 to 20 days based on company policies.
What is the purpose of a leave management system?
For many reasons, leave management is an integral part of any organization.
● Compliance with the law
You must keep a log of all paid leave for your employees during a given period. This information is necessary to meet the requirements of the state.
● Record keeping
It is essential to keep track of the leave taken and any outstanding balance to create and maintain a leave policy. This record is also useful for employees in keeping track of leave entitlements and balances.
● Business operations and planning
It is important to ensure that business operations are not affected by the absence of certain employees. The leave tracker allows admins to decide whether to approve leaves or reject them based on available resources.
● Analytics & reporting
This gives you a comprehensive view of the leaf trend and its impact on the overall operation. The reports can be used to draw valuable insights and make recommendations.
Management challenges for leave
Companies face some of the biggest problems if they don’t have a modern leave management system.
● Monitoring leaves
Although leave tracking is a fundamental requirement for a leave management system, it can prove not easy. Management can find it difficult to track employee attendance and leaves with paper and sheets while still completing important business operations.
The inability to properly track leaves can lead to staff shortages, increased workload, and even business losses.
● Payroll processing error
Without proper leave management, it is impossible to have accurate payroll processing. An error in leave management can lead to mistakes in payroll processing. To calculate the compensation accurately, it is important to keep track of the types of leave granted to employees.
Payroll has integrated its online leave management system with payroll to ensure that employees receive their salary error-free.
Many organizations fail to communicate leave policies and entitlements to employees properly. This causes confusion, frustration, dissatisfaction, and frustration among employees. Employees have the right to be informed about leave policies and related benefits.
Routine admin tasks in leave management
Let’s now examine the daily activities of an admin involved in leave management.
- Based on your office location, create a holiday plan.
- To ensure employee well-being, create leave types
- Layout pro-rated leave policies based on days or months and other round-offs.
- Decide whether to combine weekends and holidays with the leaves.
- You can set the frequency of leave accrual – monthly, weekly, or annually.
- If applicable, set the amount of compensatory leave that can be credited for work performed on weekends or holidays.
- The Complete Guide to India’s Leave Management System.
- Multiple criteria can be used to create customizations for approvals.
- Create comprehensive attendance and leave reports for employees.