The Leave Management Systems in India the Complete Guide
Leave management system lee county: Is your company paying attention to your employee’s leave management system?
Management of leave is a crucial aspect of the HR core. If you’re a novice at this or are unsure of what makes an effective management system, leave. You’re at the right spot.
In this blog, we’ll go over everything from the definition of leave management and why it’s important and the different types of leave and tips on how to pick the best leave management software for your company. So let’s dive right into it.
What is an effective leave management system?
A system for managing leave assists in recording, coordinating, and tracking time-off requests. Its primary objective is to deal with requests for leave from employees with a level of impartiality while ensuring that the absence of employees isn’t detrimental to the business.
If you’re still using documents, emails or Excel sheets to keep track of employee leaves and absences, you’re in for a catastrophe. It could be anything from payroll processing mistakes or legal compliances to the dreadful situation of employees on a certain day.
Good leave management software provides an integrated view of employee availability throughout your organization and eliminates these hassles. Some systems also allow synchronization of employees’ leaves, shift times and holidays to payroll, allowing for automatic processing of payroll.
In the meantime, before we move on, we will look at the various kinds of leaves found in India.
Leaves with different types
Various leaves are mandated by the government or offered by the business.
1. Earned leave (EL) as well as Privileged leave (PL)
Employees earn this leave while working for the specified period within an organization. For example, some organizations offer one EL for 23 days of work. Employees can take advantage of these leave days without pay deductions, provided that they get prior approval from management (except in emergencies). Of course, this leave can be cashed too.
2. Casual Leave (CL)
These leave days are of short duration and require approval from management. A single employee may avail of three to seven days of casual leave, the amount of which is different across businesses and industries.
3. Sick Leave (SL)
Employees can apply for leaves if they become sick and cannot take time off from work. The employee may be asked to submit a medical report when the number of sick days in a given time is greater than a specified time.
Certain companies are changing the name of sick leave to ‘wellness leave which encourages employees to use their leave to improve their mental health, in light of the working from home scenario.
4. Pay-day leave (LWP)
When employees have exhausted all their leave and require additional leaves, these additional leaves will cause a loss of pay and thus the term. However, employees can modify their leaves to their next leaves if their leave policy permits.
5. Compensatory Off or Comp Off
When employees work on holidays, they are paid additional leave hours, which are not equivalent to the number of days they have worked. Each company has its policy regarding compensatory off.
6. Maternity Leave (ML)
In India, women working there have the right to benefit from 26 weeks of paid time off to be pregnant if they have at least 80 days over the 12 months before the delivery date. However, after having the two first children, the duration of eligibility is reduced to 12 weeks.
7. Marriage Leave
It’s not a legal right in India. Employees are entitled to anywhere between one and 15 days. Most businesses provide three days of marital leave. Additionally, this leave may be used only (first wedding in most firms) only once throughout an employee’s entire period of employment.
8. Paternity Leave
It’s a kind of leave provided for the dad of a new baby to look after the baby and the mother. Depending on corporate policies, the amount of time allowed for leave can vary from 2 days to four weeks.
9. Bereavement Leave
This is a period of leave that is given to employees in the event of a death in their family to ensure that the employee can participate in the funeral rites and attend to personal issues, and mourn. The length of the leave may be between 2 and 20 days, depending on the company’s guidelines.
What is the reason a leave management system is needed?
Leave management is an essential aspect of any organization due to a variety of reasons like:
1. Compliance with laws
It is essential to keep a log of all paid leave that employees took during the specified time. In addition, this information is necessary to meet states’ legal requirements.
2. Record keeping
To establish and implement a leave policy, it is essential to keep track of the leave taken and the outstanding balance. Additionally, keeping a record aids employees in keeping track of their leave balance and entitlements.
3. Planning and business operations
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 or not to approve or decline leave in light of the available resources.
4. Analytics and reporting
It offers a complete analysis of the current trend in the leaves and its impact on the overall operation. As a result, it is possible to draw valuable insights using the reports and make corrective steps should they be required.
Leave Management challenges
The most important issues that businesses face in the absence of a contemporary time management software are:
1. Leaves for tracking
Leave tracking is the primary necessity of a leave management program. However, it can be a bit challenging. It is challenging for management to track employees’ absences and leave them with sheets and papers while conducting important business activities.
The inability to properly track leave can lead to staffing shortages, increases in workload and even business losses.
2. Payroll processing error
It’s difficult to imagine an accurate payroll process without proper leave management. For example, suppose there’s an error in the left tracking that leads to errors in payroll processing. Therefore, it is crucial to track the kind of leave granted to employees to calculate the amount of compensation correctly.
Many organizations do not communicate policy on leave and the rights of their employees in the right way. This causes confusion, frustration and discontent within the workforce. Employees have the right to be informed about their policy of the organization’s leave policies and the associated benefits.
Routine admin functions for leave management
Let’s now take a look at the everyday tasks of an administrator who is involved in managing leave.
Choose a complete holiday calendar based on the office address.
Design leave types that will make sure employees are well-being.
Layout policies are pro-rated for leave based on months, days, and other round offs.
Choose whether or not to combine weekends or holidays with autumn leaves.
Decide on the number of compensatory leave (if appropriate) creditable for work performed on holidays or weekends.
Develop an approval process that identifies who has the authority to approve what type of request for leave.
Create customizations to approve using various factors.
Create comprehensive leave and employee attendance reports on employee attendance and leave.