The Complete Guide to Leave Management System in India

By | July 15, 2022

 Management of leave is an essential part of core HR responsibilities. If you’re new to leaving management or have questions about making it a success, this article can help.

This blog will discuss everything you need to know about leave management. Let’s get down to the point.

What’s a Leave Management System?

Leave management systems are used to track, record, and manage employees’ time-off requests. It is designed to handle employee leave requests objectively and prevent employee absences from negatively impacting the business.

If you continue to use Excel spreadsheets, email forms, and paper forms to record employee leaves, you’re in for a disaster. It could be anything from mistakes in payroll processing to legal compliances or employee crunch.

A good leave management system can provide a single view of your employees and save you from many headaches. You can also synchronize shift times and holidays with payroll to automate payroll processing.

Let’s take a look at Indian leaves before we continue.

Different types of leaves

The government can order many types of leaves or provide them by companies.

  1. Earned and Privileged Leave (EL

IT can be earned by employees who work for an organization for a specified period. Some companies offer one EL for 23 consecutive days. Employees can use these leaves without any salary deductions, provided that they have been approved by management. This leave can also be cumbered.

  • Casual Leave (CL)

These leaves are for a limited time and must be approved in writing by management. Employees can take up seven days of casual leave at one time. But this figure could differ from business to business.

  • Sick Leave – SL

Employees can request leave if they cannot work because of illness. Employees who are sick for more than a specified period may be required to produce a medical certificate.

To encourage employees to use their sick leaves for mental health, some companies have changed the name of sick leave to “wellness” leaves. This is because many workers work remotely.

  • Leave without Pay (LWP)

Employees who use all their leaves and still need more will lose their wages and names. Employees can change these leaves to fit their future leaves if the leave policy allows.

  • Compensatory Offer or Completion

Holiday workers are entitled to more leave than the number of holidays they worked. Every company has its policy regarding compensatory leave.

  • Maternity leave (ML)

Indian women workers have 26 weeks of paid parental leave if they work less than 80 days in the twelve months before delivery. The eligibility for the second child drops to 12 weeks after the birth.

  • Marriage Leave

It is not legal in India. Employees may be granted leave for up to 15 days. However, most companies offer three-day marital leave. This leave is available only to employees who are married in their first marriage. Most companies offer it once per employee.

  • Paternity Leave

This is the type of leave the father of a newborn child can take to care for him and his mother. The leave entitlement depends on the company policy. It may take time like 2 to 4 weeks.

  • Bereavement Leave

It leaves the employee with no rights after a loved one has died. This allows employees to grieve, participate in the final rites, and care for their personal affairs. The leave entitlement may vary depending on the company policy. It can range from 2 to 20 calendar days.

What’s the purpose of a leave management program?

Leave management is an essential part of any company for many reasons.

  • Compliance with the law

It is a good idea to keep a log of all employees who took paid leave during a particular period. This information is required to comply with state requirements.

  • Record keeping

It is crucial to keep track of all leave taken and any balance outstanding to create and maintain a leave policy. Employees can also use this record to keep track of their leave entitlements and balances.

  • Planning and business operations

It is crucial to ensure that the business operations do not suffer from the absence of certain employees. Administrators can use a leave tracker to determine if they approve or deny leave based on availability.

  • Analytics and reporting

This provides a complete view of the leaf trends and their impact on the operation. These reports can be used for valuable insights and to make recommendations.

Leave management challenges Companies are most vulnerable if they do not have a modern leave management system.

  • Monitoring leaves

It is essential for leave tracking to be part of a leave management system. However, it cannot be easy. It can be difficult for managers to keep track of employee attendance and leave with paper and sheets while still completing important business operations.

Not tracking leaves properly can cause staff shortages, increased workload, and even business losses.

  • Payroll processing error

It is difficult to imagine accurate payroll processing without proper leave management. Payroll processing errors can be caused by poor leave management. To calculate compensation accurately, it is crucial to track employee leave types.

  • Communication

Many companies fail to properly communicate their leave policies and entitlements with employees. Employees are often frustrated, dissatisfied, confused, and frustrated by this. Employees have the right to be informed about benefits and leave policies.

Leave management Routine admin tasks

Let’s look at the day-to-day activities of an admin involved in Leave Management.

Create a holiday plan based on the location of your office. Create leave types to ensure employee well-being. You can create pro-rated leave policies based on time, days, or other rounds.

Decide whether you want to combine weekends with holidays and the leaves.

You can choose to accrue leave monthly, weekly, or annually. You can also set the compensatory time used for weekend or holiday work. You should ensure that there is an approval process clearly showing who has approved what type of leave request.

Multiple criteria can be used for creating customizations that are approved. For employees, create total attendance and leave records.

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