Automatic deduction of leave based on attendance policies

Automatic deduction of leave based on attendance policies

Attendance policies can be designed implement rule-based penalties in the event of late coming, short working. This document explains the detailed policies which can be implemented.

1. Policy Attributes

Key attributes which are used for defining policies are

1. Shifts Timings - Each employee is mapped to a shift for a day. Late coming, Early leaving, Shift hours worked are always calculated with respect to shift times.

2. Late coming - Late coming is always measured with respect to the shift start time. A late coming allowance can be given. For example, late coming allowance of 5 minutes means that if an employee punches in at 9:15 for a 9 am shift he is late by 10 minutes

3. Early leaving - occurs when an employee leaves before the stipulated shift end time

4. Hours Worked - Total hours worked in day can be measure through these two parameters
Hours Worked = Out Time – In Time
Shift Hours Worked = Hours worked within the shift
Idea
Example

Shift Start Time – 9 am
Shift End Time – 5 pm                                                                                                                                                                                                                 

In Time
Out Time
Late Coming (min)
Early Leaving (min)
Hours Worked (min)
Hours Worked Within Shift (min)
10:30
18:45
90
0
495
390
8:45
16:15
0
45
450
435
9:30
19:00
30
0
570

450

2. Attendance Policies and Attendance Rules

Multiple attendance policies can be created and each policy can have multiple rules. A policy also can have criteria through which it is mapped to a set of employees. These criteria are based on attributes like Department, Location, Level. All the policies for which employee is eligible will be applied and within a policy all the rules where the data is matching the rule will get applied, there is no hierarchy within rules.

Working of policies and rules are explained with the help of some examples below –

Late Coming and Early Leaving Policy

If an employee comes late or leaves early then leave should be deducted as per rules given below

1.    If late duration is more than 10 minutes but less than or equal to 30 minutes AND the employee does not leave before the shift end time then deduct quarter day leave
2.    If late duration is more than 10 minutes but less than or equal to 30 minutes AND the employee leaves before the shift end time then deduct half day leave
3.    If late duration is more than 30 minutes but less than or equal to 90 minutes AND the employee does not leave before the shift end time then deduct half day leave
4.    If late duration is more than 30 minutes but less than or equal to 90 minutes AND the employee leaves before the shift end time then deduct full day leave
5.    If late duration is more than 90 minutes then deduct full day leave
6.    If early leaving duration is more than 90 minutes then deduct full day leave

Eligibility condition – this policy is applicable to employees whose level is less than or equal to Manager
Rule
Late Coming (min)
Early Leaving (min)
Deduction (days)

Min
Max
Min
Max

1
11
30
0
0
0.25
2
11
30
1

0.50
3
31
90
0
0
0.50
4
31
90
1

1.00
5
91



1.00
6


91

1.00

Short Working Policy

If an employee is not working the stipulated hours, then leave should be deducted as per rules given below

1.    If hours worked are less than or equal to 360 minutes then deduct full day leave
2.    If hours worked are more than 360 minutes but less than 480 minutes then deduct half day leave
Eligibility condition – this policy is applicable to employees whose level is less than or equal to Manager

Rule
Hours Worked (min)
Deduction (days)

Min
Max

1
0
360
1.00
2
361
479
0.50

Senior Management Policy

If an employee is late but makes up by working extra then no penalty. Leaves should be deducted as per rules given below

1.    If late duration is zero minutes or more but less than or equal to 30 minutes AND hours worked are less than 510 minutes AND hours worked within shift are less than 360 minutes then deduct quarter day leave
2.    If late duration is more than 30 minutes but less than or equal to 90 minutes AND hours worked are less than 570 minutes AND hours worked within shift are less than 360 minutes then deduct half day leave
3.    If late duration is more than 90 minutes then deduct full day leave
Eligibility condition – this policy is applicable to employees whose level is more than Manager

Rule
Late Coming (min)
Hours Worked (min)
Hours Worked Within Shift (min)
Deduction (days)

Min
Max
Min
Max
Min
Max

1
0
30
0
510
0
360
0.25
2
31
90
0
570
0
360
0.50
3
91





1.00

The above rules are showing how to create a policy with multiple parameters. Please note that the employee will get mapped to a rule only when the data is getting mapped to each condition (across the parameters it is an AND condition).
Idea
If an employee gets mapped to more than one policy or more than one rule in a policy then penalties will be total of the penalties for each rule to which he is getting mapped but the total penalty for the day cannot exceed one day for full day working. These attendance rules are applied only on days when employee is fully present.
Notes
Note -
1. if an employee comes to work early his late coming is treated as 0:00 hours and will get mapped to any rule which starts with minimum value of Late Coming = 0:00
2. if an employee leaves after the shift end time then early leaving will be treated as 0:00 hours and will get mapped to any rule which starts with minimum value of Early Leaving - 0:00
3. these are sample policies and customized policies utilizing these parameters can be created in Attendance Setup.
4. make simple, complementary, non overlapping policies which cover all possible scenarios and at the same time do not penalize the employee multiple times
5. maximum of 10 policies can be made and within each policy maximum of 10 rules can be made
6. above mentioned policies are sample policies / rules, you can create your customized polices and rules on similar lines

3. Deduction processing

The policies rule will be applied on each day’s data separately. You can decide the offset, for example, if you want  the data for 10 August to be processed after on 13 August, you can give an offset of 2. This will give employees and managers to update records and clear up in process requests.

The priority in which leaves will be deducted can be configured in setup. For example, you can specify first Casual Leave will be deducted, if there is no balance then Earn Leave will be deducted and finally a new leave Loss of Pay will be created for the day. LOP is always the lowest priority and cannot be deleted.

1.    Casual Leave
2.    Earn Leave
3.    Loss Of Pay (LOP)

Deduction of leave will be managed by reducing the opening balance of the leave and for Loss of Pay the entry will be created. If the deduction of a leave is not getting adjusted completely in one leave, then it would be adjusted across two leaves. For example, if the deduction is of 1 leave and the available balance is Casual Leave is 0.70 then 0.30 will be deducted from Earn Leave in the list. Loss Of Pay is a special leave created only for this feature and is used to deduct salary in payroll. The process of deduction of LOP in payroll will work only if the feature to deduct LWP is activated and the process / basis will be same as that of LWP.

LOP details will be visible in Leave Reports > Details of Leave Credit report and also in Payroll > Summary Reports > Month wise LWP Consumption report as and when they are updated in monthly payroll. 

Leaves created through this policy can be withdrawn manually, refer to the article on  Manual reversal of leaves deducted through attendance policy.

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