The cost of paid leave benefits is often an employer’s largest expenditure, even exceeding healthcare. Global organizations are also under pressure to ensure that they adhere to local legislation and statutory rights around leave. In some countries, it is obligatory to report an employee’s leave of absence to the local authorities, or employees may be entitled to social security payments depending on the nature of their absence. Some jurisdictions also have regulatory requirements that employers must provide specific information in addition to the core absence data (absence code, start date, and end date). For example, it is often mandatory to provide the related child’s date of birth where an employee plans to take time off for parental leave, or the ‘Expected Due Date’ may be required for employees planning to take Maternity Leave. Each of the various leave types must be consistent across your HR, financial, and payroll systems to ensure payroll and reporting are correct. As a result, it is critical that employers understand and have a way to record, track, and correctly attribute planned and unplanned leave of all types.
One of the difficulties absences present is the sheer volume that exists. And they are growing all the time. PwC has started to offer fertility leave, and India’s Zomato gives female employees up to 10 days “period leave” per year. Every country and even region within a country has statutory requirements for leave. Some companies create a global leave program, which sets out the various type of leaves based on an employee’s country of residence, talent availability, tenure, and lots more.
Some typical leave types include:
Traditionally, payroll is informed about employees’ absences through HCM software, email, instant messenger, phone calls, or a form filled out on the intranet or paper. All of which then need to be collated to ensure payroll is accurate. Such a system is ripe for errors, is time-consuming, and puts organizations at risk of compliance failures.
To assist businesses to solve the absence challenge, we offer Immedis Absence Management, available in the Immedis Platform, which enables the creation and tracking of absences across an entire organization. Organizations can determine their standard absences globally and assign codes for each one. This absence library can be stored in your HCM or the Immedis Platform. What makes it unique is that it automatically prompts users for this country-specific data where applicable, ensuring there a no gaps when processing and reporting the data to the local authorities.
Organizations can create new leave types at a global or local level, which will be dynamically populated with country-specific data, depending on the statutory requirements.
In many cases, your company’s absence data may also be processed via integration with your HCM solution, removing the need for the manual workload associated with the inputting and tracking of absences. Another step on our journey towards touchless payroll.
For more information, please contact your Customer Engagement Partner (CEP) or info@immedis.com