Common Types of Leaves
For human resources management, a company’s leave policy is crucial. The human resource department is obliged to be fully aware of all statutory time and vacation time to develop a thorough leave policy for the organisation. Discover the several types of leaves that can be made available to your employees to enhance employee satisfaction and motivation.
Earned Leave or Privileged Leave
After working for a certain amount of time for the organisation, an employee is entitled to earned leaves. For instance, a leave might be credited to an employee’s leave account after 20 or 25 days of employment. Businesses can have different regulations around this, depending on the state and the industry. There is no LOP for off days taken for privileged leave. Additionally, if employees don’t use their vacation time, they are authorised to cash them in.
Casual Leave
Employees have the option of taking a casual leave when they need to take a brief time off, usually because of an unanticipated circumstance. The maximum amount of time for this sort of leave might vary between organisations, and requests for every casual leave must be approved by management.
Sick Leave
Sick days are accrued to an employee’s leave account after they have worked for the company for a specific period of time. In the event that they fall unwell and are unable to work, they are permitted to request for sick leave. This may demand them to present the required medical paperwork for verification, if necessary. In addition, sick leave regulations can differ depending on the business and the state.
Marriage Leave
Although there are no specific laws for this leave, some employers may voluntarily offer it to employees. Furthermore, personnel are only permitted to use this leave once while working for a company.
Maternity Leave
Maternity leave is a period of time that a female employee can take off work after giving birth. An additional 16 months of unpaid leave can be added to the predetermined 12-to-26-week compensated maternity leave. Miscarriage and abortion also count for maternity leave, however, in these cases, the leave period is usually just six weeks long.
Leave Without Pay
LOP meaning loss of pay is another way to avail time off work when an employee does not have any leaves left in their paid leave balance account. Since this kind of leave affects how the business operates, employees are not compensated for their absence.
Education Leave
Although there is no legal regulation around this upskilling and knowledge-upgrading leaves, it is offered to employees, so they can improve their contribution to the firm in the future. As it is a prolonged leave of absence, it is typically unpaid.
Compensatory Off
Employees may occasionally be necessitated to work on public holidays. They receive additional time off in accordance with the corporate policy for these extended working hours, called comp offs.
Common Holiday Types
According to the rules set forth by the government, employees are given a day off on public holidays. In India, there are primarily two types of holidays. Here is a brief description of them.
Mandatory Holiday
These holidays are distinct occasions when practically all employees in the nation take time away from work. For example, 15th August is a national holiday and time off from work is obligatory. Employees nationwide can take advantage of elemental holidays and celebrate national or religious events, such as Diwali.
Restricted Holiday
A restricted holiday is one that is voluntary, meaning the employees have the option to either take or not take leave on that distinct day. These optional holidays are not compulsory days of leave for private businesses in India. A limited amount of time off can be made voluntarily available for this sort of leave, which employees can select from a list established by Human resources (HR).
What Is Attendance Management?
Attendance management refers to keep track of employee attendance, time sheet, and other aspects related to the payroll. Tracking staff attendance is the first step in efficient attendance management. If your organisation does not already have a system in place that includes all of your employees’ schedules and enables you to quickly view all of their working hours and time-offs, consider implementing one. This can be in the form of an electronic spreadsheet or a self-service employee cloud-based platform. If attendance is not overseen adequately, the salary calculation can become cumbersome.
What Is Leave Encashment?
A provision known as ‘leave encashment’ allows employees to convert their unused vacation time into cash. However, the perks of this policy may differ significantly depending on the business. Many only permit a certain sum, while some permit even full encashment.
What Is LOP?
LOP is a shorthand term for the time an employee takes off from work when they have been given permission to do so but do not have any leaves remaining in their leave account. Such an absence indicates that no compensation will be paid for that specific day.
How To Calculate LOP?
Computing LOP can be quite straightforward. To estimate the pay for each day of an employee, divide the employee’s total annual salary by the number of workdays. The sum for the number of days that are counted as LOP can then be deducted.
Let’s assume an employee receives ₹50,000 as their salary. Additionally, the policy includes two weekly holidays. This means the employee is expected to work for (30-8), i.e. 22 days/month. To calculate the loss of pay for one day, divide 50,000 by 22, which arrives at 2,273. Therefore, in this situation, you will need to subtract ₹2,273 from the payout to account for LOP days.
What Is Leave Management?
Leave management is the process of overseeing employee absences and categorising them as paid time off, loss of pay, and other leave categories, to ensure effective business operations.
This includes the development, administration, and monitoring of the organisation’s leave policies, among other tasks. Employees in India are entitled to a variety of leaves, according to governmental regulations. Companies may allow employees to take additional leaves in complement to those mandated by the government. Some of the leaves can be carried over from year to year, while others expire with the change of the calendar.
Leave management gives both the firm and the employees a clear estimation of details like the number of utilised leaves and the number of leaves available for the current year, etc. The main objective of leave management is to make sure that employees can take time off as needed, while simultaneously ensuring that there is always a sufficient amount of staff available to fill in.
Why Do You Need to Manage Leave And Attendance?
Every organisation’s human resources plan must include effective leave and attendance management. It is essential for several reasons, some of which are described below.
Record-Keeping For Employee Confidence
A reliable administration system aids in real-time record-keeping and data handling for effective employee leave processes. Thus, a solid management system can help to entail transparency between the employer and the employee regarding leave balances, due benefits, etc; which is crucial to keep employees motivated and earn their trust in the organisation.
Efficient Integration Of Policies
Employees at various levels can consequently have various attendance regulations. It can be daunting to monitor how each policy is being followed by different employees. This issue can be resolved with an effective integrated attendance management system. Depending on the department an employee works in, you could provide them access to different policies and leave options.
Smooth Operation Of The Business
Requests for leaves must be taken into account by the management in a way that does not interfere with everyday business operations. Keeping track of employees’ attendance lets the management distribute tasks to the available employees efficiently. This confirms the business operation is not hampered at any cost. By ensuring an adequate number of employees are available for your company at all times, a leave management system enables you to proficiently manage personnel levels.
Understand Analytics
The types of leaves that different departments take are usually revealed by trends in employee absence and attendance. The pattern of taking leaves can play a vital role in analysing structural issues in the organisation that should be addressed on priority.
Monitor Employee Productivity
Managers need to have a clear idea of the accumulated work hours of the employees to estimate productivity. An extremely crucial performance parameter is daily attendance. The number of hours that employees put in at work reflects their everyday work ethic and dedication. Thus, with their attendance history, the performance of your workforce can be closely monitored.
Payroll Calculation
Employees only get paid for the hours they work for the organisation. To calculate the net salary, the management needs detailed attendance data of the employees. Leave management helps to keep track of employees’ time sheets so that you can accurately calculate payroll.
In order to sustain corporate operations and prevent unintended financial loss, employers should keep meticulous records of employees’ absences, attendance, and LOP days. Additionally, it ensures that employees are accurately compensated for the work they put in for the company. Therefore, hands-on knowledge coupled with an effective attendance system can greatly benefit the organisation.
