What is a leave management system?

Leave management software is a tool that helps organizations streamline their leave approval workflow efficiently. It makes it easy for employees to submit their leave request and for managers to approve or decline it - all while adhering to the company’s leave policy. Choosing the right leave management system determines how efficient your company is with managing time offs.


A good leave management tool comes with the employee self-service feature that delegates the task of leave request submissions to employees, thus freeing up time for the manager. Additionally, it benefits managers by centralizing leave tracking, generating crucial analytics, and serving key insights into employee behavior. These metrics help managers in identifying absence patterns and improving productivity.

free online leave management system cloud based leave management software free online leave management system cloud based leave management software

9 key features of an HR leave management software

Leave Tracking 

First on the list is Leave Tracking. One of the basic features you can see in any leave management system is leave tracking which will track the leaves consumed by every employee of your organization. The number of days, the number of employees not available at the same time or in the upcoming days, etc. all come as a part of leave tracking. 

Team Holiday Management 

Another important feature of an employee vacation tracking software is that it gives the entire team a context on the holiday pattern of everyone in the team. This helps in three things: avoiding the creation of dependencies, planning a day or week by knowing who’s in or out, and coordinating vacation planning. Making employees be self-responsible for the smooth running of the team increases employee participation and engagement. 

Multiple Policies

One of the main features you should look out for in a Leave Management System is the ability to create multiple leave policies. A company can have different departments, branches across countries, people working in different regional shifts, etc., All these mean “one size fits all” will not work. You need more than one time off policy to accommodate everyone and that’s what multiple policies will help you do.  

Multiple Holiday Calendars and Workweeks 

If you have multiple policies, or different shifts for your employees, or offices across India, you would surely need your leave management software to have a feature that helps with it. Holiday calendars and Workweeks does just that. It helps you personalize and map holiday calendars and workweeks for different groups or teams or countries. 

Accruals and Carryovers 

Another essential feature of any online Leave Management System is its ability to allow accruals and automate carryovers. These are processes that if done manually can go wrong or be missed easily. A leave management system should make sure it aligns the timely accruals and periodic carryovers with the policy and automates the whole process.

Approval Workflows

Leave Management is an easy task if set right. The approval process forms a huge part of this whole system. The ability to set clear approval workflows that match or cover for any situation or loopholes is an essential feature required in any Leave Management System. Some common things that your Leave Management software should ask you when your setting the approval workflow are: 

- Who approves the leave request in the Reporting Manager’s absence?

- Who approves the requests of an employee who does not have a direct reporting manager? 

- How many times can leave be applied and rejected for a single employee?

- As a Manager, I can approve how many days after the exhaustion of the provided paid time off of an employee?

- What is the maximum number of leaves that can be approved at the same time? 

Integrations 

An ideal leave management system should have room for an ample amount of integrations, easily and cost-friendly. Because your HRIS software, your Attendance Management system, your Payroll would all require information from your employee Leave Management system. Providing this ensures a hassle-free functioning for your HR team. It would not be smart if you cannot combine all of your systems and unify the process.

Mobile App 

With the trend of the world, it becomes highly important that your Holiday Management Software comes with a supporting Mobile App. This lets employees apply for requests from anywhere and managers approve from anywhere. The whole system on a phone makes it smart and easy to get things done without interruption.

Reports / Trends

Reports or Trends feature in a Leave Management System gives the leave pattern of the entire team or organization helping in understanding the employees better. It will also help to decide, for example, if you notice no one in your company is taking off, it is a signal that your employees are burning out and the warning signs can help you arrange something to give them their break, on the contrary, if there is an absenteeism prevailing among employees you can spot it in advance and see what can be done to motivate your employees.

Features the Make  Freshteam the Best Leave Management System

Create Multiple Leave Policies 

Freshteam not only has the easiest and smartest policy creation for leave/time-off, but it also allows you to have multiple time-off policies. One solution for all. You can create policies for different locations, departments, teams, and map respective holiday calendars and workweeks to it. 

You can set individual rules, approval workflows, accrual frequency, and balance carryovers for each policy and customize them to the maximum.

Creating flexible leave policies with leave management software. Creating flexible leave policies with leave management software.

Accurate Approval Workflows

With each policy, you can create approval workflows that best suit your needs. Reporting Manager or HR Partner or no approval, it’s your call, and it’s easy to implement.

Implementing leave approval workflows with Freshteam leave management software. Implementing leave approval workflows with Freshteam leave management software.

Team Calendar 

A quick bird's-eye view on the availability of the team for the Manager and team members that help in planning their workday/ week well in advance. It also helps to avoid the creation of dependencies among the employees.

Managers can check the team's availability status on the leave management software dashboard. Managers can check the team's availability status on the leave management software dashboard.

Holiday Calendar and Workweeks 

Freshteam comes with the in-built holiday calendar of 18 countries and also lets you create new ones based on your region. You can customize the workweek for each policy to sync with your company practices, making it easy for employees while applying time off.

Employees can refer to the holiday calendar on the leave management system to plan vacations. Employees can refer to the holiday calendar on the leave management system to plan vacations.

Multi-purpose Dashboard 

The Time-off Dashboard from Freshteam gives you complete context on everything about Time-off in one quick glance. The time-off trend of your team or yours, upcoming and past time-off requests, leave balance, and upcoming holidays. 

If you are a Manager or HR Partner, you can also approve/decline leave requests directly from the Dashboard.

A leave tracking system’s dashboard that shows upcoming holidays, time off consumes and remaining leave count. A leave tracking system’s dashboard that shows upcoming holidays, time off consumes and remaining leave count.

Mobile App

All the above features in a Mobile App, both Android and iOS. Your employees can now manage their leaves on the go.

So the next time you are in transit and need to approve leave, you need not open your laptop and look for internet connection. Freshteam’s employee leave tracker mobile app will bring leave management to your fingertips. Approve leaves faster than you can snap your fingers.

Benefits of Employee Leave Management System

A leave tracking system can help you establish your company’s leave policy/policies to its employees and also automate most of the process making sure glitches do not occur. It can also, 

Increase Employee Satisfaction 

Employee Leave Management System lets the employees apply for their own time-off, manage their leave balance, plan vacations in advance and know the availability of their peers through a simple system. Making a crucial process like Leave Management simple for your employees increases their satisfaction with the organization. 

Reduce Costs

Know if employees are not using their time off or if they are taking too much off, either way, measure the costs falling on the company through a sustained system that can give you a head-up to act on the prevailing issues reducing financial loss. 

Provide accessibility from anywhere

Online Leave Management System makes it possible for your employees, managers and HR personnel to access the system from anywhere. Employees can apply for leave from anywhere, managers can approve/decline it from anywhere and HR Personnel can fetch information they need from anywhere, instantly and decide. 

Improve Team Work

Vacations or emergencies, with an online leave management system you can get information about the entire team’s availability. It is transparent, helps employees and managers decide time-off sensibly without creating dependencies. Miscommunication is completely taken off the table and vacations or leaves are planned before in hand without deters. 

Fetch accurate Metrics and Analytics

Manual errors are completely made impossible with leave management software in place. Automatically created reports give error-free analysis on the leave pattern of your entire organization making timely audits and reviews accurate. You can also act on employee absenteeism proactively. 

Be law compliant

Most cloud-based leave management software comes with law compliance based on each country or province helping your company to stay compliant with the legal side of the laws on the employee leaves prevailing in each country. 

FAQs - HR Leave Management System

Why is leave management system important?

The tasks involved in leave management can be tedious and tiring for your HR folks for these reasons: 

Most of the above tasks require your HR team to keep running behind every employee and even with constant check-ins the chances of slipping details are very possible. This is exactly why you need an Absence Management System for your company. Once your company becomes over 50, or even 30 employees firm, it's ideal to get a Leave Management System software.

It becomes all the more essential if you track time, attendance and hours worked to pay your employees compensation to avoid flaws, confusion, and as a result employee-employer conflict.

What is leave tracking software?

A leave tracking system records the current leave balance of employees and keeps track of the leaves they avail in a specific period of time. This tool provides the complete picture to the management along with these numbers:

… and more.

But why be satisfied with just a tracker? How about a powerful leave manager that manages absence end-to-end?

How does a leave management system work?

An online leave management system functions by first uploading the entire employee database into a cloud-based storage. Next, it assigns leaves to each employee based on the company’s leave policy. With Freshteam, this process takes only a few minutes because we made onboarding so easy!

Next, the operational part is managed by setting up workflows. Here, the employee raises a leave request which triggers a notification to the manager who has a choice to approve or reject it. Either way the employee gets an email notification.

Finally, if the leave is approved, the leave management tool reduces the count from the employee's assigned leave count.

Workflows take care of the operational part entirely. Once the employee requests for time off, the manager gets notified instantly and can approve/decline in a simple click. The employee is notified of the manager’s decision, and if approved, their leave balance is adjusted automatically.

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