Benefits Of Leave Management System

The benefits of leave management system reporting are usually listed as time saved and fewer emails. There is a larger one that sits outside HR entirely.

Accrued annual leave and long service leave are liabilities. They have to be provisioned for, and the provision is only as good as the underlying balances. If those balances are held across spreadsheets, the number reported is an estimate that nobody has tested.

Excessive accrual makes it worse. Many modern awards contain provisions dealing with employees who build up large annual leave balances, and unaddressed balances grow while wage rates rise, so the liability increases even when nobody takes a day.

Accurate balances let you see that happening and act on it before it becomes a material number in the accounts.

The Fair Work Ombudsman covers excessive annual leave. This is general information rather than legal advice, and obligations vary by state and territory.

See Sentrient’s HR management system and GRC system.