Management of leave is a crucial aspect of the HR core. If you’re beginning to learn about it or are unsure of what makes an effective leave management system, You’re in the right spot.
In this blog, we’ll go over everything about leave management, including what is essential, why it’s crucial, the different types of leave, and the best way to select the best software for managing your leave for your company. Let’s get to it.
What is a system for managing leave?
A leave management system assists in recording, managing and tracking requests for time off. Its primary goal is to manage employees’ leave requests reasonably and ensure that employees’ absence isn’t detrimental to the business.
You’re headed for catastrophe if you still use email forms, paper forms, or excel sheets to keep track of employee leaves or absences. This could result from payroll processing mistakes, legal compliance issues, and the employee mentioned above shortage on a particular day.
However, a well-designed leave management system can provide the same view of employees’ availability throughout your organization and help you avoid problems. Before proceeding, we will look at the different kinds of leaves available in India.
Leaves with different types
A variety of leaves are ordered by the government or provided by the business.
1. Earned leave (EL) and Privileged leave (PL)
The employees are entitled to these leaves while working for the specified period within the company. Some companies offer 1 EL over 23 days of work. Employees can take advantage of these days with no cost-of-living deductions as long as the employees get prior approval from management (except in emergencies). The leave is encashed too.
2. Casual Leave (CL)
These leave days are of short lengths and require prior approval from the manager. A single employee may avail of three to seven days of unpaid leave, which differs across industries and companies.
3. Sick Leave (SL)
The employees can request this leave if they are sick and cannot be at work. The employee may be asked to present a medical certification if the number of sick days over some time is more significant than a specified time.
4. Pay-day leave (LWP)
If employees use up all their leaves but require additional leaves, The additional leaves cause a loss of pay and thus the term. However, they can modify their leaves to their future leave if the leave policy permits.
5. Compensation off, or Com off
Employees who work during holidays will be paid extra leaves that aren’t equivalent to their work days. Every business has a distinct policy on compensatory time.
6. Maternity Leave (ML)
In India, women employed in India have the right to an additional 26 weeks of paid time off to be pregnant as long as they have had at least 80 days before to delivery within the previous 12 months. But after having the two first children, the entitlement is reduced to 12 weeks.
7. Marriage Leave
It’s not legally enforceable in India. Employees are entitled to anywhere between 1 and 15 days. Most businesses provide three days of marital leave. This leave can also be taken only (first marriage in most companies) once throughout an employee’s entire employment.
8. Paternity Leave
It is a type of leave given to the dad of a new baby to allow him to look after the baby and mother. Based on the company’s policies, the leave duration may range between 2 days and 4 weeks.
9. Bereavement Leave
This is a period of leave that is given to employees in the event of a death within their family so that they can take part in the final rites of the deceased, attend to personal issues, and mourn. The length of the leave may differ between 2 and 20 days, based on the company’s guidelines.
Why is a management of leave system needed?
Leave Management is an integral aspect of any organization due to a variety of reasons, for example:
1. Compliance with the law
Keep a record of paid leaves employees took during the specified time. This is required to meet the legal obligations of the states.
2. Record keeping
To create and keep a policy on leave, it is essential to keep track of the days taken and the outstanding balance. In addition, the record assists employees in keeping an eye on their entitlements to leave and their balance.
3. Business operations and plan
You need to ensure that the operation of your business doesn’t suffer because of the absence of a few employees. The leave tracker can help administrators determine whether to accept or deny leave in light of the available resources.
4. Analytics and Reporting
It gives a comprehensive overview of the leaves’ trends and how they impact general operations. It is possible to draw valuable insights from the data and implement corrective actions should they be required.
Management of leave challenges
The most important issues that businesses face in the absence of contemporary leave management software are:
1. Leaves for tracking
Tracking leaves is the most fundamental requirement of a leave management program. However, it isn’t easy. It can be challenging for managers to keep track of employees’ absences and attendance using documents and sheets when conducting essential business activities.
The inability to monitor leaves correctly can lead to staffing shortages, overloaded workloads and loss of business.
2. Payroll processing error
It’s challenging to think of accurate payroll processing without proper leave management. If there’s a mistake in tracking, leave. This could lead to mistakes in payroll processing. Therefore, tracking the kind of leave granted to employees is crucial to calculate the pay accurately.
3. Communication
Many companies do not communicate their policy on leave and the rights of their employees in the right way. This leads to frustration, confusion, and discontent among employees. An employee has the right to be aware of the policy of the organization’s leave policies as well as the associated benefits.
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