The significant HR operations among these include leave management for employees as well as the exact calculation of their salaries. Previously, most such operations needed much more handling on paper, resulting in possible mistakes and ineffectiveness.
Well, that is over now; modern HRM software has entered, providing solutions for the automated tracking of leaves and computation of salary. You are also satisfying the existing labour law as well.
Let’s see how HRM software facilitates innovation in the processes related to a business.
What is HRM Software?
HRM software refers to human resource management software or an automated software package that digitises and makes human resource functions smoother.
These can begin from monitoring attendance to processing payrolls due to the fact that it also facilitates things such as leave management and salary processing in hard HR tasks that were thought to be a hassle to carry out.
Types of Leave Applicable in UAE
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Annual Leave
The employees of Dubai are entitled to annual leave under the Labour Law. After one year of service, they are granted 30 calendar days paid leave. However, if an employee hasn’t completed one year of service, then leave is calculated pro-rata.
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Sick Leave
Employees can take up to 90 days of sick leave per year, with pay that is full salary for the first 15 days, half salary for the next 30 days, and no salary for the remaining 45 days. The employee is entitled to this leave upon submission of a valid medical certificate.
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Maternity Leave
Female employees are entitled to 60 days of maternity leave. Their pay during maternity is given as follows: they receive full wages for the first 45 days, and half wages during the remaining 15 days. In exceptional circumstances, unpaid leaves are also provided.
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Paternity Leave
A father in Dubai is provided with 5 days of paid paternity leave. This can be taken within six months after the birth of the child.
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Hajj Leave
Muslim employees can be absent without pay for up to 30 days for purposes of pilgrimage.
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Emergency Leave
Emergency leave shall be allowed as per company policy, though it is not mandatory under the Labour Law.
How HRMS Software Makes Leave Tracking Easier
It is very tough to track the leaves of employees in organisations, especially large ones. Mismanagement in the field may lead to disputes, losses, or violation of provisions of Labour Law. Here’s how HRMS software makes it easy for you:
Centralised Leave Policies
HRM software facilitates the design, alteration, and implementation of leave policies that meet company standards and labour law requirements. Employee leave balance entitlements and policy appear on the same page.
Live Leave Applications
Through the system, an employee applies for a leave. The manager immediately receives notification of acceptance or rejection of the request. The system updates the leave balance automatically without the need to intervene.
Leave Balances and Reporting
HRM software provides live reports regarding leave usage and balances. This ensures that the HR teams will always have adequate resources at any point in time without understaffing or overtaking in overtime.
Compliance with Labour Law
Rules of Regional Labour Laws can be implemented so that leave policies automatically follow the rules. For instance, statutory holidays and entitlements of leave are coded in the system; there’s no possibility of default.
Salary Calculation Simplified through HRM Software
The second complex function of HR software is the simplification of salary calculations. Salary calculation, properly done, involves many things, including leaves, overtime, allowances, and deductions. It harmonises all these in its system, therefore it can easily and effectively calculate salaries.
Automated Computation of Salary Leave
Direct balances directly affect the processing of salary. For example, unpaid leaves decrease gross salary, but paid leaves do not. HR software processes salaries automatically with leave data. Therefore, it tends to eliminate any chances for error in Leave Salary Calculation.
Real-Time Payroll Processing
The software processes the payroll after considering attendance, deductions, and additional earnings. Thus, delay is eliminated, and timely disbursement of salary to the employees is made possible.
Tax Compliance and Deductions
The tax regulations form part of the HRMS in computing his pay so that all those taxes will be appropriately deducted either in provident funds or other statutory contributions. Compliance in this regard will put the company in legal hitches.
Personalise pays
Depending on the different roles of departments, organisations make use of the HRM tool and customise their pay accordingly. In the case of payroll, there are multifaceted variables such as bonuses, incentives, and the nature of overtime.
Advantages Associated with the Implementation of HRM Software in Leave and Salary Computation
There are many benefits of implementing HR software to trace the leaves and compute salary:
- Accurate
- Automated computation removes errors in Leave Salary Calculation and Salary processing.
- Accurate monitoring allows just, timely compensation to the employees.
- Greater Time Saving
Manual Leave tracking and payroll processing become much less time-consuming. Thus, HR software can put more effort into strategic planning initiatives.
Better Employee Experience
Transparency in leave balance, as well as breakups of HRM salary, improves employees’ perception and satisfaction.
Adheres to Labour Laws
Inbuilt compliance with Labor Law ensures that the organisation is compliant with local rules and does not incur penalties and dispute issues.
Scalability
HRM software comfortably scales to fit 50 to 5,000 people companies as your business grows, with its growing organisational requirements.
Features to Look for in HR Software
The following are features that should be considered when choosing leave tracking and salary calculation automation HR software.
Leave Salary Integration
It should allow integration between leave tracking and the payroll process with an automated calculation of leave salary so that there would not be delays.
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Configurable policies
The leave and salary policies must be allowed by the software according to the standards of the company as well as the demands of the labour law.
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Easy accessibility
It allows the intuitive designing of access by each of the employees as well as for the HR department, so easily access the software.
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Reporting and Analytics
It includes leave trends, payroll accuracy, and distribution of resources.
Cloud-Based Access
HRM through clouds allows access at any moment from any location. This gives ease of access via remote or hybrid working.
How HRM Software Follow Labour Law:
Labour Law Compliance is one of the important elements of the HRM system. The HRM software maintains legal standards by ensuring compliance with the following:
- Statutory Leave Entitlements: No statutory entitlements are breached, including statutory holidays, sick leaves, and paid leaves.
- Calculation of Salary with Correct Deductions: Over-Time Payment, and Allowance According to the Local Labour Laws.
- No law of labour is breached: Leave approvals, salary disbursals, and policy updates are maintained.
Details are needed to provide an audit trail that simplifies compliance checks and legal audits.
Automatic Updates
HRM software providers update their sites regarding the current changes in labour law. Therefore, it is always updated to attain compliance.
Examples of Applications of HRM Software
Case 1: Successful Leave Management
An international organisation installed HRM software that was going to help track the leaves of more than 1,000 employees from different regions. HRM software ensured compliance with different local labour laws by the company as it reduced human errors and effectively planned labour.
Case 2: Salary Paying without any Hitch
A mid-sized business organisation used HRM’s payroll management software. The attendance data was integrated in real-time, and the leave salary calculation was also automated so that salary was released timely and accurately every month.
Conclusion
It indeed works like a game-changer, more specifically for the business entities for monitoring leaves, and simultaneously, it has the feasibility to compute the salary. Thus, it increases the effectiveness of the process and helps ensure compliance with all labour law in such cases.