Leaves are common for those who work in any organization. As per the laws, there are certain leaves which one can get as a part of his full employment terms. However, in many cases, people have to go for extra leaves, and hence the companies need to have right leave management in a way that can prove beneficial to the employees as well as the business. Usually, in the case of small organizations, it may not be of grave concern as one can easily remember the dates and number of leaves an employee may have taken, but for the large companies, it can be not very easy.
If there is no proper leave management, it can be a big issue that can result in a loss for business or resentment among the employees. For modern companies, when several employees or on payroll and need to have proper maintenance of records for compliance in accordance with the law proper system for employee leave management is a must. To meet this requirement, modern technology can also be used as many software providers can offer software for the online leave management system.
In the absence of such a support system, leave management can prove as big trouble for the HR team. Though there is also leave management service provider in the field, which can help the company or organization, they also need to have data according to which they can create the record of leaves taken by an employee and balance left with him.
The leave management in case of extended leaves can be trickier as the employees may not have the balance, but yet due to his situation at home or medical condition, he may have to opt for the same. In such a situation, one needs to be vigil as if the concerned leaves are taken as regular leaves; the business may have to suffer from unwanted loss in terms of the pay to the concerned employee. In the large companies active in the different regions, this can be a grave concern as it may have several employees facing such conditions. For such companies only, an online leave management system is developed by the experts.
What is HR leave management?
In simple terms, the leave management can be termed as a system where the absence of the employee from work is detected using the time off system. In case of paid time off one can have the benefit of payment even if he has not worked or not present for the work but in case of non-availability of the same, he may have to forego the payment for the concerned time or days he has not worked or presented to work even if the work was offered by the employer. If the case of leave management outsourcing, the same has to be notified in the record to the concerned leave management service provider so that he can reflect the same rightly in the payroll, and the payment is made in accordance with the paid and unpaid leaves taken by the concerned employee.
A few legal considerations also need to be taken into account at this juncture. As a part of the employee leave management, one needs to follow the statutory provisions provided in the wages and ESI as well as other acts. As per the laws, there are a few leaves granted to employees every year. Usually, they are twelve leaves for twelve years, which one can go for without getting any money deducted. However, if there are more leaves taken by the employees, one needs to check whether the same fall in any category mentioned in the laws or just unpaid. In the case of categories such as religious leaves or medical leaves, the employee may be entitled to get certain or full payment for the same. If these leaves are also not eligible under any category and there is no balance of leaves at the end of an employee, the pay for the same can be deducted in accordance with the package or salary of the same.
If there are employees who are not medically unfit yet, they need some special attention the employer needs to make necessary arrangements for them to offer a better and healthy work environment so that they can perform their duty regularly and as required.
How do you manage employee leave?
From the business as well as employee viewpoints, the employee leave management holds great significance. Therefore to have an effective system is inevitable for every organization. However, with the availability of systems such as leave management outsourcing and software, this task has been much easy to handle for the HR team. While checking the data of the employee, his position, package, time for work, and time out need to be checked. As there are organizations with electronic attendance, this data can be readily available. This data is synchronized with the worksheet of the concerned month, and the gap will be taken as leaves. The data of such employees with gaps need to be checked with their leave records, and necessary action for the payment or deduction for concerned days is taken by the HR team. The deduction of amount or leaves are taken is shown in the salary slip of the concerned employee, and hence he can know how many leaves he has now or why his salary is deducted.
Leave Management Legal Considerations
The laws have made various provisions for different types of leaves that are granted to the employees and certain occasions when the employees can take the leaves. Every organization needs to have leave policy first, and the said must be communicated to the employees as well as mentioned on specific spots in the office premises. Even if the company has hired someone for leave management services, he must be aware of the leave policy of the company before acting on the provisions.
Under various laws, there are leaves granted, such as disability, medical, family obligations, and pregnancy, in which one can have full pay available even if he or she is not present at work. These leaves must be clearly informed to the employees, and the employee must also report his situation to the employer before going for the concerned leaves. However, the matters with every employee vary, and hence one needs to be flexible while handling these situations of different leaves. For every type of leave, there must be proper documents submitted to the employer by the employees. Hence employee leaves management in each of these situations is of paramount importance. Those who offer to leave management services also, these considerations are much necessary to keep in mind while extending the services to the clients.
Why leave management is important in an organization?
The employee leave management holds much significance for the large companies as there may be a considerable impact of the same not only in the accounts of the company but also on the interpersonal relations of employees as well as the company and staff. If there is a lack of proper leave management, it may happen that the leaves of specific employees may be deducted while a few may not have got any deduction. This can create an impression of nepotism, or others may act in a way that can trouble the business in one or other ways. Doubtlessly this loophole can also prove costly to the company as it may not be able to save that amount which it needs to pay to the employees who have not worked for it for some days.
Have the correct record: A perfect employee leave management system can help the company to maintain the record of every employee rightly. It helps the company to count how many leaves one has spent, how many are left in the balance, and if the leave encashment policy is to be followed, it can compute how much it needs to pay for the leaves not used by the concerned employee. This record can be useful in following various provisions of different laws as well as offering retirement benefits to the employees. Hence it can create a loyal work culture among the employees, and they can perform their duties well, which can benefit the business as a whole.
Proper computation of taxes: Companies, as well as employees, need to pay various taxes to the government. In the absence of the employee leave management, they may end up paying more or less amount of taxes under multiple heads. For an effective financial profile of the employees as well as the companies, it is necessary to have accurate finance data, and in the absence of the right computation, it may provide a wrong picture of the profile of the employees. In many cases, the leave amount is exempted from the tax, but if they are not mentioned, one may have to pay the tax on this amount also and hence for the companies, it may be harmful to its credit and compliance.
Offer employee benefits: In many cases, the employees who have not used leaves can get some additional benefits. In the case of no leave management, this benefit cannot be available to genuine employees, and those who have taken many leaves may not get any discouragement to act well. Hence in such a situation, those who work with faith and loyalty may feel no value of their dedication to the work or company. In many other cases such as insurance, medical benefits, and legal suits, also the leave record can be of immense help. If an employee wants to go for some loan from the market, this record can help the lender know how reliable the person is and if he gets the benefits of government schemes or not.
Legal provision: As per the provision in various laws, also the companies need to have an accurate leave management system that can be presented to the authorities as and when they are asked. In the case of ESI act and minimum wage act compliance also, it is necessary for the companies to maintain a record of the leaves with other records of the employees. Hence to meet the legal considerations and provisions also, it is required to have a comprehensive leave management policy with every organization.
The support system: In this era, one can find software where it is easy to feed the necessary data and get the output easily. The software can also be synchronized with the payroll as well as attendance so that the required record of the leaves can be easily availed to the HR, and necessary actions as per the given data can be taken. Overall, one can say that not only to manage the record of the company effectively but also for compliance of legal provisions, the leave management system is much necessary and one cannot ignore or challenge its significance in this era now.