Configure leave types, accrual rules, multi-level approvals, and holiday calendars for Indian teams. Real-time balance tracking synced with attendance and payroll.
Avani's leave policy engine lets HR admins define every leave type your organisation needs — Casual Leave (CL), Sick Leave (SL), Earned/Privilege Leave (EL/PL), Maternity Leave, Paternity Leave, Compensatory Off, Bereavement Leave, and fully custom types. Each leave type carries its own annual quota, minimum/maximum duration rules, advance-notice requirements, and whether a medical certificate or supporting document is mandatory. Policies can be differentiated by employee grade, department, or employment type — so contract staff, probationers, and permanent employees each see only the leave types they are eligible for.
Indian labour law requires Earned Leave to accrue at a minimum rate of 1 day per 20 days worked under the Factories Act, 1948, and 1 day per 18 days worked for shops and establishments in several states. Avani lets you encode these accrual frequencies — monthly, quarterly, or annual credit — directly into the policy. Carry-forward caps (e.g., maximum 30 EL days carried into the next financial year) and automatic lapsing on the carry-forward date are enforced by the system without any manual year-end exercise. Leave encashment triggers at year-end or during full-and-final settlement are also policy-driven.
Configure up to four approval levels for every leave type — for example, Team Lead approves first, then HR Manager, then Department Head for leaves longer than five days. Each approver receives a push notification and can approve, reject, or forward with a comment from the Avani app or web portal. SLA timers escalate the request automatically if an approver has not acted within the configured window (commonly 12 or 24 hours), ensuring no leave request sits ignored. Delegation rules let an approver temporarily hand off their queue to a colleague during their own absence.
Every employee in Avani Business OS sees a live leave balance dashboard that shows available days by leave type, days consumed so far this year, pending applications awaiting approval, and days due to lapse at the end of the carry-forward period. HR managers see the same data rolled up across the entire company or filtered by team, department, or location. Balance calculations always reflect the latest attendance data, approved leaves, and accrual credits — so there is no lag between a manager approving a leave and the balance updating.
Build a company holiday calendar that combines national public holidays (Republic Day, Independence Day, Gandhi Jayanti, national festivals) with state-specific gazetted holidays relevant to your offices. For organisations with offices across Maharashtra, Karnataka, Tamil Nadu, Delhi NCR, Gujarat, and other states, separate location-based calendars prevent an employee in Chennai from being marked present on Pongal while their Mumbai colleague is on holiday. Restricted holidays (RH) with per-employee quotas — common under Central Government and PSU rules — are also fully supported.
The leave module is tightly integrated with the attendance module in Avani Business OS. When an employee is absent without an approved leave, the system automatically flags the day as Loss of Pay (LOP). LOP data flows directly into the payroll engine, where it is deducted using the formula (Gross Salary / Paid Days) × LOP Days, appearing as a line item on the salary slip generated under Section 192 of the Income Tax Act. This eliminates the manual reconciliation between the attendance register and salary calculation sheet that plagues most Indian SMBs.
Avani sends automated notifications at every stage of the leave lifecycle — application submitted, approved, rejected, and escalation reminders. Beyond individual transactions, the system also fires compliance alerts: when an employee has not taken the statutory minimum leave in a financial year (relevant under several state Shops Acts), when a female employee is approaching the Maternity Benefit Act 1961 entitlement threshold of 26 weeks, or when carry-forward balances are about to lapse. These proactive alerts help HR stay ahead of statutory obligations without manual tracking.
The leave analytics dashboard in Avani Business OS tracks absenteeism trends across departments and employee cohorts, identifies peak leave months that affect project delivery, and surfaces employees with unusually high LOP counts that may indicate disengagement or a performance concern. Reports can be exported for HR audits, labour inspector inspections, POSH committee records, and board-level workforce planning. Leave utilisation rates by type help HR decide whether quotas need revision during the next policy review cycle.
A leave management system is software that automates the complete lifecycle of employee leave — configuring leave policies and entitlements, accruing balances on a schedule, routing applications through an approval hierarchy, tracking real-time balances, and syncing approved leaves with payroll. Avani Business OS provides an integrated leave management system built for Indian SMBs, covering all leave types mandated by Indian labour law including Casual Leave, Earned Leave, Sick Leave, Maternity Leave under the Maternity Benefit Act 1961, and Compensatory Off.
The terms are often used interchangeably, but a leave management system typically refers to the policy engine, approval hierarchy, balance ledger, and attendance integration that form the structural backbone of leave administration — in contrast to the end-user-facing application features like mobile apply and self-service portals. Avani Business OS provides both: a robust policy engine that encodes accrual rules and compliance requirements, and a user-friendly interface for employees and managers. The /leave-management-software page covers the employee-facing experience in more detail.
Avani supports Casual Leave (CL), Sick Leave (SL), Earned/Privilege Leave (EL/PL), Maternity Leave (up to 26 weeks as per the Maternity Benefit Act 1961, amended 2017), Paternity Leave, Compensatory Off, Bereavement Leave, Marriage Leave, Study Leave, and any number of custom leave types. Each leave type has independently configurable quotas, accrual rules, carry-forward limits, encashment eligibility, and document requirements.
Under the Factories Act, 1948, an adult worker earns one day of Earned Leave for every 20 days of work. Many state Shops and Establishments Acts have different ratios — for example, 1 day per 18 days in Karnataka. Avani Business OS lets you set the accrual ratio, accrual frequency (monthly, quarterly, or annual credit), minimum days worked to qualify for accrual, and the maximum balance cap. Accruals are processed automatically at the configured frequency without any manual action from HR.
Yes. You can configure separate approval chains for each leave type and add duration-based escalation — for example, leaves of 1-2 days need only the direct manager's approval, while leaves of 3 days or more require an additional HR Manager sign-off. Each level in the chain receives a notification and has a configurable SLA timer. If the approver does not act within the defined window, the system escalates automatically to the next level or sends a reminder.
The Avani leave module is natively integrated with the attendance module and the payroll engine. Attendance data (biometric, GPS punch-in, manual) feeds into the leave system to auto-flag absent-without-leave days as LOP. At payroll processing time, the engine reads approved leaves, LOP days, and Comp-Off balances to compute the correct present-days count. PF at 12% of basic, ESI for employees with gross up to Rs 21,000, and TDS under Section 192 are all calculated on the corrected salary figure — with no manual handoff between systems.
Avani Business OS includes pre-built holiday calendars for national public holidays and state-level gazetted holidays across major Indian states including Maharashtra, Karnataka, Tamil Nadu, Delhi NCR, Gujarat, Rajasthan, Haryana, and Punjab. Organisations with offices in multiple states can assign location-specific calendars to employee groups so that each employee's leave register reflects the holidays applicable to their work location. Admins can also add, remove, or modify holidays for any given financial year.
Yes. Carry-forward rules are configured per leave type — you set the maximum number of days that can be carried into the next financial year and the date on which unused balance above that cap lapses. Leave encashment can be triggered at year-end (for the days above a minimum balance threshold) or automatically during full-and-final settlement when an employee exits the company. Encashment amounts are calculated on basic salary and integrated into the payroll or FnF settlement calculation.
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