Managing employee leave is a core responsibility for HR teams. All leave days must appear on employee payslips and be divided between carry-over leave from the previous period and newly accrued leave.
To ensure accurate tracking and immediate updates to leave balances, companies are increasingly using leave and absence management software. These tools provide real-time visibility over upcoming absences and simplify communication between HR, managers, and employees.
Companies need to know at all times which employees are absent and which are scheduled to be away. Tracking taken leave is also crucial for payroll accuracy. Paid leave data must be correctly transferred into the payroll software so that employees’ payslips reflect the correct balances.
A regularly updated leave schedule helps avoid disputes, ensures compliance with labor laws, and improves workforce planning. Depending on the company structure, line managers or HR staff may be responsible for maintaining the leave schedule.
Digital solutions now make this easier, offering shared access to up-to-date schedules directly from a computer or mobile app, making communication faster and more reliable.
For years, Excel spreadsheets were the standard for creating leave schedules. The process typically involved:
Excel formulas automatically calculated leave balances and provided the necessary data for payroll processing.
However, Excel had significant drawbacks, such as the lack of real-time access for employees and managers, and frequent errors due to manual data entry. These limitations have largely been addressed by modern leave management software.
The first step in any leave schedule is to calculate each employee’s leave entitlement, which depends on whether the company works on a 5-day or 6-day week. Employees typically receive 25 or 30 days of paid leave per year, plus additional time off for:
Leave schedules must distinguish between carry-over leave from the previous year and leave accrued in the current period. Carry-over leave should be used first to avoid forfeiture.
Before leave is officially taken, employees and managers should review and agree on leave balances. This pre-validation step helps prevent future disputes and ensures both sides have the same understanding of leave entitlements.
Once leave is taken, HR teams must manually transfer leave data into payroll software when using Excel. This process involves:
Today, automated leave management has largely replaced Excel. Modern tools streamline the process for employees, managers, and HR teams.
Leave management software serves as a digital assistant, accessible at any time. Employees submit leave requests directly via the system, and managers receive immediate notifications. Leave balances are updated in real time, giving everyone clear visibility into who is off and when.
Digital leave schedules provide shared access to up-to-date information for HR, managers, and employees. This reduces the risk of double bookings and allows everyone to view the current team schedule before requesting time off.
Most leave management tools are available via both desktop platforms and mobile apps, meaning employees and managers can submit, approve, or review leave requests from anywhere.
Each time a leave request is submitted, the responsible manager receives a real-time notification, ensuring requests don’t get lost or forgotten. This replaces the outdated process of paper forms sitting on a desk for days before being signed.
Unlike Excel spreadsheets, modern leave management systems directly sync with payroll software. Approved leave data is automatically transferred to employee payroll records, avoiding the need for manual data entry and minimizing errors.
Digital leave management systems simplify compliance with labor laws, improve communication, and reduce errors across HR processes. They allow HR, managers, and employees to access the same information, ensuring transparency and faster processing of requests.
Modern leave software also provides audit trails that can prove compliance if needed, reducing legal risks for employers.
Switching from Excel to dedicated leave software offers several advantages:
While Excel was once sufficient for small companies, scaling businesses need more efficient tools to handle growing workforce complexity and legal requirements.
Maintaining an accurate leave schedule is a legal obligation for companies. Today, automated systems offer the best solution to ensure leave is properly planned, tracked, and reported. This benefits both employees and employers, enhancing workforce planning and ensuring legal compliance with minimal administrative effort.
