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How to Manage Leaves of Absence


What Is a Leave of Absence?

The definition of leave of absence is permission granted by the employer to take a period of time off work for some reason. During this time, the employee retains their employee status and all associated benefits(What is a Leave of Absence (LOA)? - Definition from Safeopedia, 2019).

Frequently shortened to the single word leave. Employees requesting leave from work due to a specific situation in their life. The causes for this can vary. Here are a few possible reasons.

  • A period of rest to recover from sickness
  • Time away from work for vacations or other activities not related to work
  • Parental leave for new or adoptive parents
  • Leaves for further education related to the employee's existing employment or work.

Employees in most countries have four sorts of paid leave of absence sick leave, paid vacation, paid holidays, and paid time off. Anything that isn't cleared under this will be considered an illegal absence, which will result in unpaid time off as well as disciplinary action. The types of leave differ depending on country and state regulations, as well as company policy and employment contract terms.


                                                              (Source: gulf-insider.com, 2021)      

How do employers manage an employee's leave of absence?

According to SHRM, managing an employee's leave of absence consists of five phases.

  • Identifying applicable legislation.
  • Examining the policies, methods, and practices of your organization.
  • Approving or rejecting the leave of absence request and recording the procedure.
  • As the situation develops, action is taken.
  • Carrying out continuous evaluations.

While determining which policies and processes work best for your organization, always stay within the bounds of the law. Assess your employees' demands as well as the limits of your budget to create a policy that is suited for your firm (Janzer, 2018).


Why is employee leave so important? 

According to experts, replacing an employee might cost 20% or more of employee pay. Offering additional time off flexibility decreases the cost associated with employee turnover substantially (Klein, 2017). 


                                      (Source: Give A Grad A Go - Graduate Recruitment Agency, 2020)

According Employee retention may be significantly improved by providing the option of taking more time off. By expanding paid maternity leave from 12 to 18 weeks, the number of new mothers resigning at Google decreased to 50%. Not only Google, but Facebook also pays mothers and fathers 100% of their weekly earning for four months after giving birth or adopting a child.

At ABC company, they provide six months of paid maternity leave and three months of unpaid leave if needed. In addition, in the current situation with Covid-19, the company offers limitless paid time off without deducting from the employee's leave quota.


Conclusion

employee absenteeism has gotten a lot of attention in recent years. This is owing to employers' ' care duty ' to their employees, their goal to optimize labor utility in competitive markets, and their increased attention on limiting costs and disruptions due to absence.

References

Janzer, C., 2018. What Should I Know About Different Types Of Employee Leave?. [online] Workest. Available at: <https://www.zenefits.com/workest/what-should-i-know-about-employee-leave/>[Accessed 2 August 2021]. 

safeopedia.com. 2019. What is a Leave of Absence (LOA)? -  Definition from Safeopedia. [online] Available at:<https://www.safeopedia.com/definition/5941/leave-of-absence-loa> [Accessed 02 August 2021]. 

Klein, J., 2017. How to Manage Leaves of Absence like a Boss - Inspire HR. [online] Inspirehumanresources.com. Available at:<https://Inspirehumanresoureces.com/manage-leaves-bsence-like-boss/> [Accessed 2 August 2021].

Give A Grad A Go - Graduate Recruitment Agency, 2020. The Importance of Taking Time Off from Work. [video] Available at: <https://www.youtube.com/watch?v=fgoTMYy3o9M&t=170s> [Accessed 2 August 2021].

gulf-insider.com, 2021. [image] Available at: <https://www.gulf-insider.com/dubai-gets-tough-employees-taking-time-off-sick-leave/im-on-sick-leave/> [Accessed 2 August 2021].

Comments

  1. A practical Topic. every organization should have clearly stipulated, published policy on Leave and absenteeism. This will help out to measure employers performances as well as the welfare development. ultimately this will improve the overall performance of an organization.

    ReplyDelete
  2. Uncommon topic Nadeeshan. Good effort!!
    Leave management refers to the process of handling leaves and absences due to illness, vacation, or other reasons. A good leave management system improves employee satisfaction, increases transparency, and decreases unscheduled tasks. It also reduces, if not completely eliminates unexplained or excessive absenteeism. In the banking sector, they have mandatory 7days annual leaves. it will give a chance to employees to avoid the daily routine.

    ReplyDelete
  3. Human Resource professionals can use the below-mentioned steps to manage leaves of absence.
    1. Determining the applicable laws.
    2. Reviewing organizational policies, procedures, and practices.
    3. Approving or disapproving LOAs and documentation.
    4. Taking action as the situation progresses.
    5. Performing ongoing evaluation and analysis.

    ReplyDelete
  4. The high rate of absenteeism affects organizations productivity and efficiency tremendously. Managers should be trained in their responsibilities to manage absenteeism, and the use of disciplinary procedures if required. On the other hand proper communication of organizational leave procedure to employees is essential to harmonise the work environment.

    ReplyDelete
  5. The majority of staff turnover happens within the organization. Although external factors have an impact, this same company's management has no control over these factors. It is the responsibility of the managers to focus on changing independent variables to limit absenteeism. You have defined very well and provided examples of what you can do in an organization.

    ReplyDelete
  6. Very important toipc you have shared with us. In gerneral every organization should have strict regulations in place in the event of an employee's absence. HR should educate their employees on how and when they should apply for a leave, what the pay arrangements are, what happens if they take unauthorized leaves, and what disciplinary action they may face if they do so.

    you have clearly explained the topic. Thank you Nadeeshan

    ReplyDelete
  7. Interesting article Nadeeshan.A leave of absence is an extended period of time off work that is excused by employer. During this designated time away, the individual retains his or her employment status but may or may not receive pay or usual benefits. At the end of the leave, an employee may resume their regular duties.

    ReplyDelete
  8. Leave or absence is Legislation requirement which every company has to adhere. Every employee is entitled to obtain the predefined leaves allocated by its company. Most in Srilankan labor context, most of the organization has the mix of Annual/Medical/Casual Leave. Some company's focus on mandatory annual leave of 7 days for all its employees. The leave system helps the employees to relax and refresh their mind set, engage in personal life work and spend quality time with family and etc. Leave is an important part of every employee and all company's should abide by the labor law related to leave. Thank You.

    ReplyDelete
  9. In any well-run company, managing employee absences is a important task. That employees have legal rights to leave work in certain situations. Sickness, family illness, etc. are all covered by various laws. It is possible to act based on the absenteeism rate and to prevent it. Even after an employee's leave request is approved, employers face many challenges managing these leaves properly. Employees today are well aware of their rights and enforcing them is becoming more common and costly. Employers must be extremely cautious in all aspects of leave management to avoid litigation or to best defend against potential claims. Managing leaves of absence properly can save employers money and time.

    ReplyDelete
  10. Hi Nadeeshan, I'm sure some people just read / heard the word "leave" which seems to be a dream come true for some days. Yes, as it sounds amazing, and very important. Vacation benefits promote good physical and mental health in the workplace and improve a person's work and health balance, which reduces stress and unplanned days.

    ReplyDelete

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