A leave management app should let you set leave types, credit them monthly with carry-forward, let staff apply for full or half days from their phone, route approvals to the right person, skip week-offs and holidays inside the dates, and make extra days unpaid automatically in salary. FundRaksha HR does all of this on every plan, from ₹49 per employee per month + GST.
What a good leave system does
- Leave types. Casual, sick, earned or custom types, each with its own rules.
- Credit and carry-forward. Balances credited monthly, with unused leave carried forward as per your policy.
- Half days. Applications for a full or half day.
- Counting. Week-offs and holidays inside the leave dates are not counted.
- Approvals. Admin, manager, or manager then admin.
- Salary link. Approved paid leave counts as a paid day; extra days become loss of pay.
Writing a simple leave policy
Before setting up any software, write down your policy in a few lines. A typical small-business policy looks like this:
| Item | Example |
|---|---|
| Casual leave | 1 day credited each month, carry forward up to 6 |
| Sick leave | 6 days a year, credited monthly |
| Applying | Through the app, at least a day in advance except for sickness |
| Approval | Reporting manager, then HR for more than 3 days |
| Beyond balance | Unpaid |
| Holidays inside leave | Not counted |
State law (the Shops and Establishments Act for shops and offices, or the factory rules now under the OSH Code, 2020) sets minimum leave in many cases, so check that your policy meets it.
Worked example: leave across a holiday
An accounts executive applies for leave from Friday to Tuesday. Saturday is a working day, Sunday is her week-off and Monday is a declared holiday. The app counts Friday, Saturday and Tuesday: 3 days. She has 2 days of casual leave left, so 2 days are paid leave and 1 becomes unpaid automatically. Her manager approves on the mobile app, and at month end the payslip shows 1 day of loss of pay with the per-day rate.
Without software, this is exactly the case that leads to an argument: did Monday count, and who agreed the third day?
Leave mistakes that cost money
- Approving on WhatsApp. The message is lost, the balance is not updated, and payroll pays a day it should not, or deducts a day it should not.
- Counting holidays as leave. Staff feel cheated, and it may not match your state leave rules.
- No carry-forward rule. Unused leave piles up without limit and becomes a large liability at exit, when leave encashment enters the final settlement.
- Different rules for different people. Unless set deliberately by grade or roster, inconsistency leads to complaints.
- Leave and attendance in two places. A person marked present on the register and on leave in the file is paid twice or not at all.
Keeping leave, attendance and salary in one system removes the last two problems entirely, and the written policy handles the rest.
Setting up leave in FundRaksha HR
- Create leave types (casual, sick or custom).
- Set the monthly credit and carry-forward for each.
- Choose the approval flow: admin, manager, or manager then admin.
- Upload holidays and set week-offs per person or per roster.
- Staff apply from the app; managers approve from the app; payroll picks up the result.
Every plan has a 30-day free trial with your real team, and there is no bill for the trial period. After that, you pay only for active employees in the month. See pricing.
When an employee leaves, unused leave often enters the final settlement; see the full and final settlement format and the gratuity calculator.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.