How do You Manage Annual Leave?

If you are running a company, then you will agree that there are many preparations which are required to be done at the start of every year.

Manage Annual Leave

One of these preparations is drafting the leave plan for the year. It is an important task to do as companies with a pre-planned leave plan can better prepare their projects, set their projects’ deadlines effectively, and make other necessary decisions. Pre-planning leaves also benefit your employees as it leaves no space for confusion.

With all of these benefits, it becomes an integral part of the planning for the whole year. But if you think it is a confusing task, you will be left with no confusion once you are done reading this blog.

Important Components of a Leave Plan

Before starting the step-by-step guide, let’s discuss the essential components of a leave plan. A leave plan comes under the HR leave policy of the company.

A leave plan mentions many vital things like the number of leaves allotted to employees, the periods when leave will not be applicable, maximum and minimum period leave allowed, etc. Check out our blog on the essential components of of Leave Management Policy to get detailed information.

Moreover, some rules and regulations should be included in a leave plan and the procedure for taking leave. The process is important as there can be different methods for applying for leave. So the employee should know which approach your company uses. So, now let’s move on to the step-by-step guide to draft a leave plan.

How to Create an Annual Leave Plan?

To create an annual leave plan for your organization, follow these simple steps:

1) Mention the Types of Leaves

Start by putting the types of leaves you want to allocate to your employees. Here you should know that the two types of leaves are mandatory. These two types of leaves are sick Leave and earned Leave. Besides these two types, you should add other essential kinds of leaves like maternity, Paternity, Casual, etc.

2) Allocate the Quantities of Leave and Their Terms

In this step, you must define the quantities of leaves by their types. Here you should be aware of every labor and state-wise law related to the matter. It is necessary as regulations define the minimum number of leaves that should be allowed to an employee.

Moreover, you should also add the terms and conditions that should be agreed upon by employees. These terms and conditions specify the scenarios where the particular will be applicable, when the leave application can be denied, along with the maximum and minimum period of the leave.

Maximum and minimum period refers to the maximum number of consecutive days for which the employee can take leave and the minimum duration for which the employee must take Leave. The minimum period is mostly one day, but in some cases, it can be a half day.

3) Specify the Leave Approval Process

Now within this step, there are multiple steps. First, draft a policy for leave approval in case of multiple leave applications. Commonly, more than one employee applies for leave on the same day. It mainly occurs on the days around public holidays and weekend offs. So, there should be an unbiased rule for this situation. The best way to consider this can be the first come first served rule. According to this rule, the first employee who sends the application will be approved. It is fair mainly because those who need Leave plan for it in advance.

The second rule to draft in the approval process is when leaves are not applicable. These periods differ from company to company. For example, if you are a company that provides ITR filing services to clients. In this case, your last month to file ITRs will likely be your busiest month. So, you can specify that there will be no application approval in this period.

By following these steps, you can easily make an annual leave plan. You can keep using the same plan with minor changes every year if there is no change in labor and other related laws.

Final Words

An annual leave plan is a must for organizations to maintain a smooth workflow. Moreover, a very important thing to remember is the compliance of your leave plan with labor laws. It will keep your company away from any legal issues. Compliance with labor laws and other regulations will also make it easy to draft your annual leave plan.

Frequently Asked Questions

1) What laws should be looked at while making an annual leave plan?

Labor laws should give the first priority when creating an annual leave. In addition, state-wise rules and regulations should also be followed in annual leave planning.

2) Which type of leave is mandatory to add to an annual leave plan?

According to labor laws, sick leave and earned leave are mandatory to exist in any company. These two types of leave should be there in your annual leave plan.

3) Is casual leave paid or not?

Casual leaves allotted to employees are always paid. However, since it is not a mandatory leave, it is up to the company to add it to the leave plan.