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Ultimate Guide to Leave Management System

June 8, 2022
Leave Management
Leave Management System

Survey data from Expedia found that 75% of Indians experience vacation deprived, which is the highest rate in the world.

Do you have an effective leave management system?

An effective leave management system ensures that businesses function efficiently while also allowing staff to take time off as needed.

However, without a framework in place, this procedure may result in disaster for HR. Employees are irritated when they can’t simply submit leave requests or when payroll problems occur.

The following is a guide to a good leave management system!

If you’re new at it or wondering what constitutes one, this blog is your ultimate guide to the Leave Management System.

You will get to know about leave management, including its necessity, forms of leave, and how to select the best leave management software.

Lets begin

What Is A Leave Management System?

A leave management system aids in the recording, monitoring, and reporting of employee requests for leave off. Its primary goal is to manage workers’ leave requests fairly while guaranteeing that their absence from work has no negative impact on the company.

You’re doomed if you still utilize paperwork, emails, or spreadsheets to track staff absences. It could be anything from accounting and payroll mistakes to legal compliance issues to a day-to-day personnel crunch.

Imagine an organization with a well-designed and efficient leave management system?

Employees submit their leave requests in the system, which automatically calculates the time off they have accrued. On scheduled paydays, employees earn their salary based on their work hours and leave usage.

Piece of cake, right?

But before going further, Let’s understand what leaves are and their types.

What is leave?

A leave is an absence from work authorized by your employer for any reason. 

Types of Leave

Types of Leave

There are several types of leaves that are either required by the legislation or provided voluntarily by the company. Some of them are discussed here.

1. Leave of Absence or Sick Leave (SL)

Workers can demand these absences if they become ill and are unable to work. If the number of sick days taken in a row exceeds a certain threshold, the employees may be forced to present a medical certificate.

2. Unpaid Leave or Casual Leave (CL)

These are short-term leaves that require management clearance in advance. An employee can take anywhere from 3 to 7 days of casual leave at a time, depending on the company and industry.

3. Privileged Leave (PL) or Earned Leave (EL) (PL)

Employees earn these leaves by working for a specific period of time in a company. Employees can take these leaves without incurring any salary reductions if they obtain prior management consent. This leaf can also be encashed.

4. Take unpaid leave or leave without Pay (LWP)

When workers use up all of their vacation time and still need extra, the additional vacation time results in a pay cut, hence the term. Employees can, though, apply their leaves to future leaves if their break policy allows it.

5. Matrimonial Leave

In India, it is not a legal right. Employees may be awarded anything from one to fifteen days of paid leave, with most employers allowing three days. Furthermore, this vacation is only available once during an employee’s whole job time.

6. Maternity Leave

In India, female employees are entitled to 26 weeks of paid maternity leave if they worked for nearly 80 days in the period of 12 months before the due date. However, after the first two children are born, the eligibility period is reduced to only 12 weeks.

Paid Leaves: Meaning, Types, And More!

What is the purpose of an Online leave management system?

For a variety of reasons, an online leave management system is an important aspect of every organization, including:

1. Legal  requirements

You must keep track of the paid holidays that your workers have taken over a given period. This data is required to meet the states’ regulatory standards.

2. Keeping records

It’s critical to keep track of the leaves taken and the unpaid balance while creating and maintaining a leave policy. Workers can also use this record to keep records of their leave balances and obligations.

3. Business Strategy and Management

It is crucial that the business operations are not hindered by the absence of some employees. The leave tracker assists administrators in determining either to approve or deny leaves depending on accessibility.

4. Analytics and reporting

It gives a comprehensive picture of the leaf trend and how much it affects operating efficiency. Based on the findings, you can make useful conclusions and, if necessary, take corrective action.

Features of a good online leave management system

  • Employees should track their leaves from a single dashboard.
  • Every company has different policies, leave types, and procedures, so a good online leave management system should have a custom feature that fits business-specific needs.
  • A good leave management software should be accessible from anywhere, any time, and from any device.
  • A cloud-based online leave management solution should not only provide multi-channel, on-the-go connectivity but should also eliminate software installation and update headaches.
  • A decent attendance monitoring system should keep records of all staff’ leave history and present it to both staff and management.
  • A decent enrollment system ought to have a reporting module built-in that generates dynamic reports depending on the data collected.

Why Is Human Resource Management Software Important?

Leave Management Process Challenges

What is your biggest challenge with your current system?

These are some of the issues which you are facing in your daily life. Just look at it.

Leave Management process challenges

1. Poor Communication

Companies don’t convey their leave policies well enough. Sixty-two percent of executives believe their firm delivers mixed or maybe no messages on holiday leave.

Employees may become unsure of how to leave policies function as a result and may ask queries such as:

  • How does vacation time accumulate?
  • Is leave pay unpaid or paid in full?
  • What is the status of my leave?

Do you know?

Workers get wrapped up in the prolonged process of seeking leave if the upper replies aren’t clear, which can result in lost time and inconveniences.

Poor communication can also result in situations where an individual has planned a vacation but is unable to take it because of a lack of communication. 

If the employee quit, an HR manager would have to either diffuse the situation or figure out how to manage workloads.

2. Error in Payroll Processing

Without an adequate leave management system, accurate payroll processing is impossible.

If there is a problem with leave tracking, it will lead to problems with payroll processing. As a result, it is critical to keep track of the types of vacations issued to employees in order to appropriately calculate remuneration.

The automated leave management solution from UBS Payroll is linked with payroll and guarantees that employee salaries are paid correctly.

The Solution to Your Leave Management Problems: UBS

It’s essential to locate a leave management solution that will allow you to fly over the minefield rather than tripping over it.

Take control of your leave management process and simplify it to save hours for management, minimize payroll issues, reduce human dependency, minimize paperwork, and manage queries in a straightforward manner. A cloud-based SaaS Platform can eliminate all of the issues with attendance management and make it simple.

Several organizations throughout the world rely on UBS to help them manage their leave. Our readily customized leave management system saves time and energy for your HR personnel by centralizing leave and holiday information for quick access, reducing the risk of time-off misuse, and increasing overall organization efficiency.

Alpesh Vaghasiya

Alpesh Vaghasiya

The founder & CEO of Ultimate Business Systems Pvt. Ltd. (UBS), I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of UBS is Connecting people, Optimizing the process, Enhancing performance.

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