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Exploring the Features of a Leave Management System

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As professionals, we can take time off for various reasons. Vacations help us find a balance between work and personal commitments and can reduce our work-related stress. Most companies are required by law to give their employees a certain number of vacation days. For example, India's Factories Act requires companies to provide 12 days of earned leave to every employee who has worked 240 days in a year.

Every company should have a comprehensive vacation policy that lists the different types of vacation to which employees are entitled and sets out how employees should use each type of vacation. Additionally, it is important to streamline the management of employee vacation requests. This is where a vacation management system comes into play.

To better understand the benefits of a leave management system, let's take a quick look at the challenges associated with managing employee leave requests.

What challenges do HR teams face when it comes to vacation?

  • Tracking vacation requests

When leave is managed manually, employees submit their leave requests on paper or via email. As incoming requests pile up, approvers become overwhelmed and may even miss some requests. This negatively impacts the employee experience. Manual leave management can also result in leave records not always being properly documented, increasing the likelihood that your company will face compliance issues.

  • Difficulties in enforcing vacation regulations

When there is no system in place to manage employee leave, employees are less aware of how much sick, time off, and earned vacation days they are entitled to. This leads to various problems ranging from increased absenteeism and lack of transparency to lower productivity and poor wellbeing.

  • Inaccuracies in payroll

Employees' leave dates are required for calculating paid and unpaid leave. Employees may take more vacation than they are entitled to, resulting in a loss of wages. Sometimes they are also entitled to compensation for their vacation. Failure to properly record and document such aspects of leave will result in errors in pay calculations. This negatively impacts employee morale and their trust in your company.

What is a vacation management system?

A leave management system is a comprehensive HR tech tool that allows companies to track their employees' leave requests online. A vacation management system can help your company define employee vacation requirements, approve vacation requests, and manage vacation days to align with your company's vacation policies. If your company operates globally, you can add individual leave types and customize leave policies for each location. The vacation management system also allows your employees to check their vacation balance, request vacation, and access their upcoming vacation list with just a few clicks.

The system centralizes all data related to employee leave in a single online location and analyzes this data to produce useful reports. This also helps in calculating salaries accurately. Because every step of vacation registration is stored securely, you won't have any issues with labor law compliance. Additionally, most vacation management systems have a mobile application that allows companies to manage vacation approvals directly from their smartphones or tablets.


A leave management system can transform the tedious task of managing employee leave into a simple, easy and effective process. We hope this blog post has given you insight into the various challenges associated with leave management and the basics of a leave management system!

IceHrm, our HRMS, features an intuitive leave management system that can automate a variety of leave-related tasks, including collecting employee leave requests, managing approvals, checking employee leave balances, sharing leave calendars, and much more! Learn more about IceHrm's vacation management system.

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