What Are the Risks of Not Keeping Leave Records? Let's Discuss the Consequences

Hi,

Could someone please inform me about "The risks of not maintaining leave records"?

Thank you.

Hi,

In addition to what Tejaswini has mentioned, I would like to add that maintaining leave records is mandatory as per the respective acts applicable to the industry, such as the Factory Act, etc. It is also necessary to calculate the PL; we need to know the number of days present in the previous financial year, and for that, leave records have to be maintained.

Cheers,
Harshad

Hi,

It's only the register that can let you have control over excess leaves. Also, as per the situation/work pressure, granting of leaves can be controlled.

Thank you,
Tarun :icon1:

Hi Akhila,

The most important aspect of maintaining leave records is that this document is auditable. During the period of excess/short payments to the employee, the auditor has every right to ensure that the funds are not misused. This helps the auditor in preparing the Profit and Loss (PL) statement and Balance Sheet for the Financial Year (FY). Yes, I agree that excess, shortfall, generated pay, leave encashment, etc., are other advantages.

Thanks and Regards,
Shirish

Maintenance of leave records is a must and important as mentioned below:

1. It is a statutory requirement as the same is to be produced before the authorities, as and when they ask for payroll.

2. You know the leave status/position of an employee.

3. Helpful for calculating earned leave and payment.

4. You can track the employee and counsel him on his habitual pattern of taking leave.

5. You know when to provide extra help or to permit overtime for another employee of the same cadre to avoid work disruption.

6. It will be helpful in appraising his performance for annual increments/promotion to the next higher grade.

7. It is one of the responsibilities of the Personnel Department.

8. Employees will know the balance of leave to their credit.

That was very helpful. I am now designing a flowchart and have to determine if there are any loopholes in the leave system in my office.