Monthly Archives: February 2014

Online leave management makes leave policy implemention easy

By | Business, Human Resource, Leave Management | No Comments

The leave policy of a company recognizes the importance of balance between the work and personal life of all the employees for their emotional and psychological well-being. Devising a balanced leave policy is necessary for companies to fulfill their responsibility towards the society at large and to help employees meet their personal needs.

The task of maintaining the leave records of the employees and making them available at the time of updating leave records and salary calculations becomes very cumbersome. The traditional leave management systems—involving paperwork and simultaneous maintenance of records in an excel file—are both time consuming and complicated.

Leave management is connected with various processes related to an employee such as:

  • Payroll processing
  • Employee record management
  • Attendance management
  • Reimbursement claims
  • Reporting

Leave

There has always been a need for efficient and error-free systems, which is not always possible to achieve through manual processes. This creates the need for an efficient and reliable online leave management software which can be accessible to all those concerned with an employee’s leave approval, payroll development, and overall performance evaluation.

Online leave management systems helps to automate and streamline employee attendance and time-off management. The use of a clear and transparent system wherein you can set up leave policies, define holiday calendars, check leave balances, and track records for year-end processing, can help you add credibility to your organization.

An online leave management system enables employees to easily check their leave balances and apply for leaves online from anywhere. The leave applications can be forwarded to the concerned departments and the authorized approvers responsible for approving leaves. Online leave management systems also provide email notifications to the concerned staff for easy tracking of applications and the process of leave approval/disapproval.

The employee leave management system that a company uses, should have the flexibility to accommodate different types and number of leaves allowed under various categories such as privilege leave, sick leave, or casual leave, to name a few. The system should also make accommodations based on the governing rules and laws across all the states and countries where the offices of the company are situated. In the same way, for holidays that do not fall on a fixed date or are subject to the sighting of the moon, there should be a provision for the adaptation in the online leave management system accordingly.

In such cases, online leave management systems can prove helpful by tracking and managing information of all the people at work. For companies who have offices in multiple cities, across the country, some online leave management systems also provide the provision of multiple calendar integration, which can help to accommodate the region-specific holidays and work policies specified by the local laws governing them.

The consolidation of the employee records of a company is very important as human resource is the most valuable resource for all organizations. Employee information systems and its management becomes a matter of concern for all companies. Under such circumstances, if the online management systems integrate personnel management with leave management, it serves as an added asset. Most online leave management systems also offer to manage your users with a great deal of flexibility and allow to control what information these users can access.

The presence of such online leave management systems that incorporate all the above mentioned aspects and adaptations—complying with the company policies, governing rules and regional factors—makes it easy to implement the leave policy of the company in a very clearly demarcated and transparent way.

Guidelines for an Effective Leave Policy

By | Human Resource, Leave Management, Payroll | No Comments

The commitment of an employee towards his company entitles him to certain leaves of absence from his office. These leaves have to be in accordance with the governing rules and individual company policies.

leavepolicyThe leave policy of a company should be clear cut and well-defined for a healthy work life balance of an employee and the productivity of the organization.

The need for a leave policy in every company arises out of a larger responsibility of a company towards the its employees and their loved ones. A specified number of paid leaves, which may vary according to organizations and industries, impart an employee’s basic rights of employment. Paid employee leaves are necessary for public health in general and help employees deal with certain obligations, including childcare and related activities, arising from a spouse, parent or child.

From the employees’ perspective, the provision of a leave policy aids them in balancing the demands of work and family with full job security. It also works as a motivating factor at the workplace. Various studies have indicated that employees value the flexibility provided by a leave policy.

On the other hand, not having a proper leave policy means little or no control over unscheduled absences from work— a serious problem that translates into big costs for many employers. Let us have a look at the factors that must be kept in mind, while designing a leave policy for an organization.

Devising a leave policy

1.    The first step towards designing a leave policy is to decide the number of leaves in a year that the organization is willing to provide. Out of these, the number of paid and unpaid leaves also needs to be categorised.

2.    Decide if you want to divide the total number of leaves into categories such as sick leave, casual leave, privilege leave etc. or merge all categories into one.

3.    Define clearly the process of availing leave such as:

  • who are the people who will approve the leave requests
  • what are the factors that need to be considered while permitting the leave
  • how to process the leave under normal circumstances

4.    The process for taking a leave in cases of emergency should also be defined. The level of flexibility may vary from organization to organization and some companies may allow a day off by informing the Department head through phone and submitting a leave application later.

5.    The maximum permit of occasional leaves such as in case of death of a loved one/unavoidable circumstances and marriage should be set.

6.    The action for uninformed or unauthorized leave should also be decided.

7.    The number and types of leaves for temporary/contractual should also be worked upon. The leave policy for this category, if it has to be different from the regular employees should be thought of and structured accordingly.

8.    The specifications, duration, extension, and eligibility of the female employees for maternity leave should also be adjudicated.

There is a need for a system to calculate and customize the leave account for all the employees of an organization to accommodate the different types of leaves and holidays, also taking into account the regional laws governing the state of workplace. Generally, the leave account of an employee operates on a yearly basis from January to December and some companies also allow encashment of accumulated paid leaves at the end of the year.

The employee payroll system that the company uses should be flexible to make accommodations for the different types of leaves that the different companies offer to their employees. For example: The number of sick leaves permissible according to the Shops and Establishments Act may differ for the different states of India. For an IT company which has offices in three different states, the payroll system should be customizable to be used in all the offices across the states. Similarly, for holidays that do not fall on a fixed date or are subject to the sighting of the moon, there should be a provision for adjustments in the payroll system that the company uses.

The employee leave and paid time off policy of a company is a standard portion of an employee benefit package that is offered to him at the time of his recruitment.  These policies go on to make a huge difference when the companies are hiring and trying to retain valuable employees.

The Different Types of Leaves in India

By | Cloud Computing, Human Resource, Leave Management, Payroll | No Comments

The employees of any government, non-government or private organization are entitled to certain types of leaves during their work tenures to help them maintain a proper work-life balance. Various studies have emphasized the importance of improving the balance between work and life balance in the daily life for both the employers and employees. It helps not only to ensure health and happiness for the people but also to help build productive businesses.

Leave-calendar The employees can utilize various types of leaves to take time out for activities that are important to them including spending time with friends and family, taking part in sports and recreation, volunteering, or even undertaking further study among others. Let us have a look at the various types of leaves that employees can avail in India under different circumstances.

1.Holidays: These are the leaves that are always paid for and no deductions are made from the salary of the employees. There are the following types of holidays in India:

  • National Holidays: These are the fixed holidays that we have in India on the 26th of January, 15th of August, and 2nd of October every year.
  • Weekly Holidays: There are either one or two weekly holidays at the end of the week for all the employees depending upon the organizational policy.
  • Festivals: Various religious and regional festivals also account for holidays in India. There are very few festivals like Christmas, which fall on the same date every year. However, the exact dates of some festivals depend on the lunar calendar and are subject to change on the sighting of the moon. Each company can devise its own policy regarding how many festivals it will give a paid leave for, every year.

2. Earned Leave or Privilege Leave: The type of leave which the employees earn as they work for an organisation for a specified number of days. The privilege leave is sanctioned to the employees without any salary deductions. This type of leave requires prior approval from the employer except in cases of emergency. The employees are usually allowed to accumulate their privilege leaves and even encash them in case they are not availed. The number of privilege leaves admissible may vary on the basis of industry and region.

3. Casual Leave: The type of leave that is granted for short durations and can ordinarily be taken with prior information to the employer except in cases when informing the employer is not possible. Across industries and organizations, there are different rules for the number of days that casual leaves can be taken at a stretch varying between three to five to seven days. As a rule, official holidays are not counted when calculating the number of casual leaves if they fall during the period of casual leave.

4. Sick Leave or Medical Leave: An employee can call in sick if he is not in a state to come to office for work. Usually, an employee is entitled to sick leave only after a stipulated period of employment in an organization. The number of sick leaves permissible may vary from organization to organization and as a matter of fact, no prior intimation is required for availing this type of leave. A medical certificate from a registered medical practitioner may be required to testify the sickness if the sick leave is being extended for a long period of time.

5.       Maternity Leave: This provision is especially available for those women employees who plan to have a baby. The duration of paid maternity leave is 26 months and this can be further extended with 16 months of unpaid leave. No deductions can be made from the leave account of the female employee. This type of leave can also be taken in case of miscarriage or abortion but the leave limit in such cases is shorter.

6.       Quarantine Leave: This type of leave is granted to an employee only if there is an infectious disease in the family or household of the employee that can be hazardous to the health of other people in the organization.

7.       Half Pay Leave: Generally available to government servants only, this type of leave is credited to the leave account only after the completion of one year of service in the organization. As the name suggests, the employee is entitled to half of a day’s salary during such a leave.

8.       Study Leave or Sabbatical Leave: An employee may be granted a study or sabbatical leave to enable him to update his knowledge and experience in a way that he will be of greater use to the Institute after re-joining.

Apart from the various leaves mentioned above, certain sectors and industries also have provisions for commuted leave, leave not due, paternity leave, extraordinary leave, childcare leave, hospital leave, special disability leave, and child adoption leave. The duration of all these types of leaves and the circumstances under which they become due are subject to specific company policies.