Many companies face confusion when handling leave and overtime. Manual submissions, slow approval processes, and miscalculated overtime payments often occur. These problems not only harm the company financially but can also lower employee morale and trust.

 

In fact, managing leave and overtime properly is a critical foundation for healthy HR administration. Without clear guidelines, companies risk violating regulations and creating an unfair work environment.

 

A Guide to Properly Managing Leave and Overtime

 

To help you, here is a practical guide to managing these two crucial aspects better and more professionally.

 

1. Have a Clear and Written Policy (SOP)

 

The first and most important step is to have a transparent policy. Create detailed Standard Operating Procedures (SOP) regarding:

• How to apply for leave and overtime.

• The deadline for submission.

• Who is authorized to give approval.

• Overtime terms and conditions (including wage calculation).

• Types of leave employees are entitled to.

 

2. Understand and Comply with Government Regulations

 

Companies must comply with applicable labor regulations. Understand the rules regarding annual leave, special leave (maternity, sick), as well as overtime hour limits and the legal overtime pay calculation formula. This compliance avoids legal sanctions.

 

3. Socialize the Rules Thoroughly

 

A great policy is useless if employees do not know about it. Socialize the leave and overtime SOP from the moment employees first join (onboarding) and ensure the document is easily accessible, for example, through an internal company portal or employee handbook.

 

Also read: How to Avoid Absence Cheating, Companies Must Know!

 

4. Implement a Consistent Approval Workflow

 

Fairness is key. Ensure the approval workflow is consistent for all employees and not protracted. A slow and uncertain process, especially for leave, can cause frustration. Set a deadline for managers to give approval.

 

5. Perform Accurate and Centralized Record Keeping

 

Every leave or overtime submission and approval must be recorded neatly. Manual recording using Excel or paper is very risky (lost data, input errors). Accurate data is crucial for audits and payroll calculations at the end of the month.

 

6. Utilize Digital Technology (Automation)

 

This is the solution to address weaknesses in points 4 and 5. Using a digital system or HRIS app will automate the entire process. Employees can apply from the app, managers get real time notifications, and data is instantly recorded centrally. This eliminates bureaucracy and ensures accuracy.

 

Managing leave and overtime is more than just administration; it is about fairness, compliance, and efficiency. With the right guide and a supporting system, you create a transparent work environment where employees feel valued and the company is legally protected.

 

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