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What is Leave Management?

Leave Management
Leave Management is the process of defining leave policies, allocating balances, processing employee applications, approving requests, and tracking leave impact on payroll.

Leave Policy for Indian Businesses

Typical leave policy for Indian businesses: 18 Earned Leaves (1.5/month), 12 Sick Leaves, 12 Casual Leaves, 2 Optional Holidays, Maternity (26 weeks paid for ≤2 children), Paternity (variable), Compensatory Off (for worked holidays). Factory workers covered by Factories Act: minimum 1 day per 20 days worked.

Leave Management in ERPNext

ERPNext's leave management flow: Define Leave Types → Create Leave Policy (allocations per type per year) → Assign Leave Policy to employees → Auto-allocate at year start → Employees apply → Manager approves → Attendance integration → Payroll deduction for unauthorised absence or LOP.

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