A leave means a day off from office work apart from the holidays. Every organization has some leave policy, as employees don’t require working for all seven days. So under the leave policy, you may get the leaves to urge your salary. Because you’re also allowed to get additional leaves under certain circumstances.

Many years ago, employees weren’t given leaves, but nowadays, all the employees have the opportunity to get paid leaves. There are various sorts of leaves that any employee can benefit from.  There are all different kinds of leaves to be granted in a year. A number of these granted leaves expire at the end of the calendar year, while some are carried to the subsequent year. Sometimes, employees are going to have to suffer a pay cut for the number of days they want off. This is often called LWP ( leave without pay).

Managing employee leaves is an HR activity that every company needs to handle. So, to handle all the activities leave management is the most important.  If you don’t know about anything regarding the leave management system then you are at the right place. Let’s dive in.

What Is A Leave Management System?

The leave management system is the administration of employee leave as per company leave policy and statutory compliance. A leave management solution or software helps in managing, recording, and tracking employees’ leave requests. Leave management in HRMS also synchronizes with the attendance system & Payroll system.

The main objective of leave management is to handle employees’ leave requests impartially while ensuring that the employee’s absence from work doesn’t adversely impact the business.

If you continue to use paper forms, excel sheets, and emails to record employee leaves, you’re heading for a disaster.  A leave management system is used mostly for the 3 functions:

–          Define Leave Policies

–          Routine Leave Administration Work

–          Implement Policies

In short, it’s a process that takes care of any time off request placed and tracks the period in which employees are not working under the leave policy. Therefore payroll counting will become easy. 

Types Of Leaves Are Entitled To Employee

There are various sorts of leaves that are either instructed by the company or the government.

1.     Casual Leave (CL)

Casual leaves are for brief durations like any function at home, any problem at home. It requires prior approval from the management. You can take half or full days of CL and get the problem sorted out. This type of leave is mandatory in several states. An employee is eligible for 3 to 7 days of unpaid time off. These leaves are for casual events to accommodate unforeseen personal requirements. In some leave management software, CL is already mentioned and you just have to apply for this with one click.

 2.     Privileged Leave (PL) Or Earned Leave (EL)

You can earn these leaves for days worked. These kinds of leaves are known as privileged leaves, earned leave, vacation leave, or annual leave.  When employees work for a particular period in an organization, they provide some leaves. These leaves are availed as long leaves. Some organizations provide 1 EL for 23 working days and some more or lesser than this. These kinds of leaves are available for an employee without any deductions.

Privileged leaves are mandatory as per labor law, also EL or PL can be converted to cash after a year and this is called leave encashment. A basic salary is usually considered as the unit of exchange to encash leaves.

 3.     Sick Leave (SL)

When an employee feels sick and can’t they can get sick leave. This leave is also known as Medical leaves (ML). These leaves are provided on the grounds of sickness and encourage employees for mental health.

The workers may be required to provide a medical certificate if the number of sick leaves is more than 2 days. It is another leave type mandated by the law.

4.     Leave Without Pay (LWP)

When all kinds of paid leaves are over and you still want leave for some reason you can use non-paid leaves. These leaves are known as leave without pay( LWP). It results in a loss of pay and it can be counted per day pay.

For example, if you want to take 1 LWP then, your one-day salary will be cut. One day’s salary is counted as salary by working days.

Workers can also adjust these leaves against their future leaves if the leave policy allows. Also, if any employee goes on vacation without prior information and his or her sick leaves are over It can be counted under LWP. There is not any concept of leave balance in LWP. There are unlimited LWP, however, if they are taken again and again without a valid reason, the company may take some steps against you.          

5.     Maternity Leave (ML)

Under the maternity act 1962, women employees are eligible for 26 weeks of paid leave for pregnancy who have worked for at least 80 days in the 12 months preceding the expected due delivery date.  , However, after the birth of the two children, the eligibility reduces to 12 weeks only. Under the Act, some leaves are provided as mandated leaves in case of adoption, miscarriage, surrogacy, and tubectomy.

6.     Compensatory off

When the employees work extra, or work during holidays, they’re compensated with additional leaves that are less than equal to the number of holidays worked. These leaves depend on the business requirement. This request is approved by the project manager and then forwarded to HR. An employee can’t mandatorily do overtime. Also, every company features a different policy for compensatory off.

7.     Marriage Leave

Marriage can take many days and taking leaves for that is necessary. In some companies, employees could also be granted anywhere between 1 to 15 days, while most companies offer 3 days of marriage leave. Also, this leave is often availed only once during the employment period. For availing this, a marriage invitation or certificate is required as a proof for getting approval of leave.

8.      Bereavement Leave

It is a leave granted to an employee when there is death near one. So employees can participate in the last rites of the dear one. They can make sure of grief and personal matters as well. 

9.     Paternity Leave

As with maternity, paternity leave is also offered to the father of a newborn baby. It is required so that he can take care of the baby and mother as well. The leaves may vary between 2 days to 4 weeks supported by company policies.

The Bottom Line,

Although some employers want to stay at work all the time, leave is important. They should have a fair share of time off to rest. An overworked employee is unproductive, and that’s why excluding weekend leave should be given. And that’s why the leave management system comes. Good leave management in HRMS can manage the process of managing employee time-off requests reasonably and efficiently. Check the latest software in the market such as UBS and get the service to make the leave management process hassle-free.

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