
Are you confident that your organisation's attendance policies and practices are legally sound? With the frequent changes in labour laws, it’s easy to unintentionally overlook key compliance requirements even while trying to stay on top with a modern attendance management system.
A few years ago, we came across a small business owner who faced a lawsuit due to miscalculated overtime pay. The case dragged on for months, costing the company its reputation, time and money. Many such incidents are happening around us. Workplace lawsuits related to wage and hour violations are on the rise. Negligible oversights can lead to bigger problems. To avoid similar costly mistakes, let's explore the essential legal guidelines and best practices for effective attendance management.
Understanding the Legal Framework of Employee Attendance in India

To fully understand the legal framework of employee attendance in India, one must explore the labour laws that apply in this context. Here’s a breakdown.
Payment of Wages Act, 1936:
This law mandates employers to complete the payout to their employees on time and instruct how their wages are supposed to be calculated, including deductions for absences. It strictly forbids any unauthorised deductions. With modern attendance management systems, businesses can easily meet the requirements of this law by accurately tracking time and attendance.
Industrial Employment (Standing Orders) Act, 1946:
This act mandates that employers clearly specify every requirement regarding workplace conditions. A new concept called ‘Fixed Term Employment’ was introduced as per this act which requires the employer in industrial establishments, regardless of the industry type, to keep the status of permanent positions in fixed-term roles without any alternations. In a broader sense, this will encompass their working hours, attendance etc.
Maternity Benefit Act, 1961:
The Maternity Benefit Act of 1961 ensures maternity benefits and paid leave for women employed in establishments with 10 or more workers. It grants 26 weeks of leave for the first two children and 12 weeks for subsequent births. Violations can result in fines up to ₹5,000 or imprisonment for employers.
Labour Laws on Leaves and Holidays:
Every employee working in a registered company is entitled to paid leave on national holidays or a compensatory day off on another day if they are required to work on such days, such as Independence Day, Republic Day, and other nationally recognized public holidays like Eid, Diwali, and Christmas. Similarly, each state has its own designated state holidays, which employers are expected to observe and accommodate for their employees.
Understanding these laws is essential for any business to develop a well-structured employee attendance policy and ensure its thorough implementation through an attendance management system, achieving maximum compliance with these regulations.
Key Attendance Management Scenarios That Lead to Legal Consequences

Now that we understand the legal framework surrounding employee attendance practices in India, let’s address some common challenges that may arise in this context. Even with an employee attendance management system, challenges can persist if the root causes of these issues are not fully understood. Identifying these challenges and how they impact the best practices will give you an advantage in addressing them effectively from the outset.
Exclusionary Attendance Policies:
Many companies lack fair attendance rules. When certain workers are singled out unfairly while others are not held to the same standards, it can stir up big problems at work.
Take this example: Imagine a manager who always lets some employees show up late but writes up others. A worker with a disability might get criticized more harshly for arriving a few minutes behind schedule. Discriminatory attendance policies can mess up workplace harmony and even land a company in legal trouble. Leaders need to step up and create guidelines that work for all team members.
Inadequate Leave Accommodations:
Organizations must also address the legitimate leave requests from their employees appropriately. Employees may require time off for various reasons. Health issues or family emergencies etc. Promptly accommodating these requests is inevitable to avoid any lawsuits. A free attendance management system can help the HR team track these requests in real-time.
Biased Methods of Attendance Tracking:
Another challenge is the use of biased tracking systems, which allow those in positions of control or authority to manipulate attendance records. For instance, team leaders tweaking the system to favour certain employees. An employee attendance management system should be objective and transparent, without any loopholes that could be exploited to tamper with records. If employees feel their attendance is being tracked unfairly, it can lead to disputes and dissatisfaction.
Incorrect Classification of Absences:
Some companies may wrongfully mark employees' absences to avoid paying them for those days. For example, an employee might have a legitimate reason for missing work, such as a medical emergency, but the employer may refuse to accept the excuse and mark the absence as unexcused.
While this allows the employer to deny the employee pay for that day, saving the company money, this action breaches the employee's right to leave and violates the company's legal compliance regarding attendance policies.
Recommended Practices for Legal Compliance in Attendance Management System
Ensuring legal compliance in attendance management is a company's responsibility. Organizations employ multiple strategies to achieve this, ranging from having a comprehensive attendance policy to utilizing an innovative online attendance management system. Here are some recommended practices you can prioritize in your organization.
Developing Comprehensive Attendance and Leave Policies:
Establishing clear and detailed attendance policies is fundamental for legal compliance. These policies should spell out when employees can take time off and what happens if they break the rules. Not only must the policies be formulated, but they must also be clearly communicated to all employees to ensure consensus regarding expectations and help prevent disputes or misunderstandings.
Organizing Periodic Employee Training Workshops:
If organizations fail to revisit attendance policies and best practices within their existing attendance management system, complications can rapidly emerge. Without periodic review, misunderstandings, disputes, and employee dissatisfaction can quickly escalate. Regular training programs for both employees and managers become crucial in this context.
These programs should comprehensively educate the stakeholders about the critical importance of attendance policies and legal compliance. By intentionally cultivating a culture of awareness and understanding, organizations can effectively mitigate the risk of non-compliance and create a more harmonious workplace environment.
Staying on Top of Attendance Records:
Companies can spot trouble brewing early on by carefully tracking the attendance logs - when people show up for work and when they check out. By digging into attendance data, they can pick up on warning signs—like team members who keep calling in sick or seem stressed out. It's not about catching people doing something wrong; it's about understanding your team and stepping in to help before small issues turn into big problems. Smart organizations leverage such insights to fix mistakes and improve.
Adopting Innovative Attendance Management Systems:
Implementing an online attendance management system can greatly enhance compliance efforts. From automating tracking to simplifying accurate records maintenance, such systems can bring more transparency into the attendance tracking and management process. With a modern attendance management system like Mewurk, both employees can view attendance reports real-time and see if they comply with the applicable laws.
Keeping Attendance Rules Fair and Square:
When it comes to tracking time, everyone should play by the same rules. When some employees get a free pass while others get called out, it can brew resentment. Just as having a good policy, stepping up and making sure it applies to everyone—from the newest team member to the top executive—is essential.
Updating Knowledge of Legal Changes:
Labour laws may evolve periodically, and businesses must verify if these updates could impact their attendance policy's legal compliance. If understanding these changes independently seems challenging, it's best to consult legal specialists. They can simplify complex legal terms, identify potential risks, and guide you through their proper implementation in the employee attendance management system.
Conclusion
For every business in India, maintaining legal compliance in attendance management is essential. Clear policies, the use of reliable online attendance management systems, and ongoing employee training promote fairness and legal adherence. We believe the legal framework and best practices covered in this blog will prove valuable as you explore this area.
Mewurk's free attendance management system is specifically designed to help businesses in India maintain legal compliance in attendance tracking. Tailored for SMEs across all industries, it simplifies the complexities of attendance management, reduces errors, and keeps your business compliant and efficient.