Public Service Commission Report on the Management of
leave in the Public Service
Table of Contents
- Introduction
1.1 Introduction
1.2 Purpose and scope of the investigation
1.3 Methodology
- Measures regulating the management of leave
2.1 Introduction
2.2 The Public Service Staff Code and Regulations
2.2.1 Vacation leave
2.2.2 Sick leave
2.2.3 Maternity leave
2.2.4 Special leave
2.2.5 Leave gratuity
2.2.6 Control measures prescribed by the PSSC and the PSR
2.3 The new Public Service Regulations
2.4 The Basic Conditions of Employment Act, 1997
- The administration of leave
3.1 Introduction
3.2 Competence of officials involved with the management of leave
3.2.1 Knowledge of the applicable prescripts and procedures
3.2.2 Accessibility to appropriate prescripts
3.3 Recording of leave
3.3.1 Process followed to record leave
3.3.2 Factors that impact on the effectiveness of leave record systems
3.4 Control mechanisms
3.4.1 Audits
3.4.2 Attendance registers
3.4.3 Summaries of leave taken
3.4.4 Providing leave credits on pay slips
3.4.5 Leave planning
3.4.6 Records kept by line managers
3.5 Effectiveness of current leave record systems
3.5.1 Leave forms are not filed chronologically
3.5.2 Not all leave taken is recorded
3.5.3 There are long delays before leave is captured
3.5.4 Requirements in terms of medical certificates are not always met
- Leave accrual
4.1 Introduction
4.2 Current status of leave accrual in the Public Service
4.3 The reasons for high levels of leave accrual
4.3.1 Accrued leave is seen as a savings plan
4.3.2 High work pressure
4.3.3 Negative attitude of managers towards leave
4.3.4 Lack of income
4.3.5 Lack of co-ordination of leave arrangements with spouses
4.3.6 Dependency on income generated through overtime
4.3.7 Work environment
4.3.8 Non recording of leave taken
- Unethical conduct
5.1 Introduction
5.2 The abuse of sick leave
5.3 Taking leave without prior notification
5.4 Not adhering to official work hours
5.5 Selling of recommended application for leave forms
5.6 Conclusion
- Core problem areas identified during the investigation
6.1 Introduction
6.2 List of problems identified
6.2.1 Not all officials are familiar with the relevant prescripts and
procedures
6.2.2 There is a lack of department specific policies to supplement the
national policy on leave
6.2.3 Logistical problems are experienced with the recording of leave.
6.2.4 Infrastructure problems are experienced in regional offices
6.2.5 Leave records obtained from the pre-rationalised public
6.2.6 Control measures are insufficient
6.2.7 Mistakes were identified on leave records
6.2.8 Leave accrual in the Public Service is excessively high
6.2.9 Officials make themselves guilty of unethical conduct in respect of
leave
6.3 Conclusion
- Leave administration as applied by other institutions
7.1 Introduction
7.2 Issues relevant to the South African-Public Service
7.2.1 The control of leave
7.2.2 Accrual of leave
7.3 Conclusion
- Proposals to improve the management of leave
8.1 Introduction
8.2 Developing a comprehensive departmental policy on leave
8.2.1 Clarification of the national prescripts on leave
8.2.2 Explaining the procedures for the recording of leave
8.2.3 Control measures to be applied
8.2.4 Providing guidance on how to deal with sickness absence
8.2.5 Limiting leave accrual
8.3 Decentralising leave administration.
8.4 Increasing competency to deal with leave administration
8.5 Limiting leave accrual
- Conclusion
Annexure: Summary of checklists utilised during
interviews
Full Document (6 Mb)
EXECUTIVE SUMMARY
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INTRODUCTION
1.1 The accrual of leave by public servants is a practice with significant
financial implications for the State as employer. If leave is not managed and
controlled effectively it can result in substantial losses in terms of
unwarranted expenditure. The financial, and other implications, of leave
prompted an investigation by the Public Service Commission aimed at
determining how effective leave is managed in the Public Service. The
investigation was conducted in eight (8) national departments.
-
MEASURES REGULATING THE MANAGEMENT OF LEAVE
2.1 The measures that regulate the granting of leave in the Public Service
were, prior to the implementation of the new Public Service Regulations (PSR)
contained in the Public Service Staff Code (PSSC) and the old PSR. Public
servants in general qualify for between 30 and 36 days' vacation leave per
annum and 120 days sick leave in a cycle of three years.
2.2 The new PSR was implemented with effect from 1 July 1999. The most significant
departure from the previous leave prescripis is that departments will now
have to establish a written policy on special leave and negotiate such a policy
in its bargaining councils. Greater emphasis is also placed in the new PSR
on the responsibility of heads of department to monitor and control leave.
2.3 The Basic Conditions of Employment Act (BCEA), 1997, provides that an
employer must at termination of employment pay an employee for any period
of annual leave that the employee has not taken. This provision will result
in additional costs for the State as employer when the BCEA, 1997, becomes
applicable to the Public Service on 1 June 2000.
-
THE ADMINISTRATION OF LEAVE IN THE PUBLIC SERVICE
3.1 Competence of officials involved with the management of leave
3.1.1 Officials, with a few exceptions, displayed a' basic knowledge of
the applicable prescripts and procedures regarding vacation leave. A matter
of concern, however, was that not all managers had direct access to the
appropriate prescripts.
3.2 Recording of leave
3.2.1 All departments use the Personnel and Salary System (PERSAL)
administered by the Department of State Expenditure to electronically record
leave. In addition to the electronic capturing of leave, the human resource
management (I-IRM) components of departments also keep leave files of all
officials in their respective departments.
3.2.2 A major concern that was identified is the effect that the
structure of a department has on the effectiveness of leave administration.
Both departments who have regional offices as well as departments whose
employees are situated in more than one building, experience logistical
problems with the recording of leave.
3.3 Control mechanisms .
3.3.1 A basic control mechanism built into the process for the recording
of leave, in all departments, is the checking of leave captured on PERSAL by
a Senior or Principal Personnel Officer.
3.3.2 The fields created on PERSAL for the recording of leave in itself
cannot function as a control mechanism but must be supported by other
measures. It remains an electronic register entirely dependant on the
information captured by operators.
3.3.3 Audits, attendance registers, summaries of leave taken, leave
credits on pay slips, leave planning and records kept by line managers are
additional control measures that were observed during the investigation.
3.4 Effectiveness of current leave record systems
3.4.1 In order to ascertain whether the record systems utilised by
departments are effective, the leave records of 96 employees were inspected.
The following issues were of particular concern:
- Leave forms are not filed chronologically.
- Not all leave taken is recorded.
- There are long delays before leave is captured.
- Requirements in terms of medical certificates are not always met.
3.4.2 Statistics provided by PERSAL supported the findings of the
inspection. According to PERSAL, no leave was recorded for the period 16
July 1998 and 15 July 1999 in respect of 489828 public servants (48,2 % of
all public servants).
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LEAVE ACCRUAL
4.1 Current status of leave accrual in the Public Service
4.1.1 The current measures that regulate leave in the Public Service do
not place any limitation on the accrual of vacation leave. Except in the
case of personnel working with finances, officials are also not forced to
take a prescribed number of days leave per annum. The aforementioned, in
combination with the high number of days leave that public servants can
accrue per annum (30 to 36), obviously results in high levels of leave
accrual in the Public Service.
4.1.2 The officials interviewed as part of this investigation accrued on
average 9,5 days vacation leave per annum. This translates to an average
leave credit at termination of service (if a person has 35 years service) of
332,5 days.
4.1.3 The full implications of high levels of leave accrual for the
Public Service becomes clearer when one considers the financial implications
attached thereto. The State as employer's total liability on accrued
vacation leave, as on 30 September 1998, amounted to R11, 6 billion
(R11,600,000,000).
4.1.4 An exposition of the average leave accrual per age group in the
Public Service provides insight into the short term implications of leave
accrual. The average leave credits for officials over the age of 55 (and
therefore those most likely to retire in the short term) are 103 days. The
State's liability in terms of the leave credits of these officials is R1,2
billion.
4.2 The reasons for high levels of leave accrual
4.2.1 The following reasons were provided for high levels of leave
accrual:
- Accrued leave is seen as a savings plan.
- High work pressure.
- Negative attitude of managers towards the granting of vacation
- leave.
- Lack of income.
- Lack of co-ordination of leave arrangements with spouses.
- Dependency on income generated through overtime.
- Non recording of leave taken.
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UNETHICAL CONDUCT
5.1 Managers in the Public Service are confronted on a daily basis with the
following unethical conduct relating to leave:
- The abuse of sick leave.
- Taking leave without prior notification.
- Not adhering to official working hours.
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CORE PROBLEM AREAS IDENTIFIED DURING THE INVESTIGATION
- Not all officials are familiar with the relevant prescripts and
procedures.
- There is a lack of department specific policies to supplement the
national policy on leave.
- Logistical problems are experienced with the recording of leave.
Infrastructure problems are experienced in regional offices.
- Leave records obtained from the pre-rationalised public services are
incomplete. Control measures are insufficient.
- Mistakes were identified on leave records.
- Leave accrual in the Public Service is excessively high.
- Officials are guilty of unethical conduct in respect of leave.
-
LEAVE ADMINISTRATION AS APPLIED BY OTHER INSTITUTIONS
7.1 The existing problems facing the South African Public Service in terms
of the administration and control of leave are by no means unique.
Institutions in both the private and public sectors have to overcome similar
difficulties in ensuring that all leave is recorded.
7.2 Certain institutions, such as ESKOM and the South African Post Office
(Ltd) have started to creatively deal with the problems relating to the
control of leave. ESKOM is currently piloting a system whereby certain leave
categories are electronically captured by individual supervisors. The South
African Post Office (Ltd), on the other hand, has implemented a comprehensive
absenteeism control policy to assist managers.
7.3 A limitation of leave accrual is furthermore embodied in the leave
policies of these institutions. Employees are generally allowed to accrue only
a limited number of days leave per annum and in many instances they are
obliged to take prescribed periods of leave per annum.
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PROPOSALS TO IMPROVE THE MANAGEMENT OF LEAVE
The following proposals are made on how the management of leave could
possibly be improved:
8.1 Departments must develop comprehensive departmental policies on leave
providing for-
- clarification of the national prescripts;
- explanation of the procedures for the recording of leave;
- control measures to be applied, i.e.-
- compulsory record systems to be kept by management,
- procedures whereby managers can control that leave has been captured,
- absenteeism control,
- internal audits;
- guidance on how to deal with sickness absence; and
- limitation of leave accrual.
8.2 Departments with regional offices must decentralise the administration
of leave and create the necessary infrastructure in the regions.
8.3 Training should be provided at all levels to ensure that the role
players involved are sufficiently informed of their responsibilities regarding
the administration and management of leave.
8.4 Limiting leave accrual through encouraging officials to take leave and
a revision of the relevant national prescripts contained in the collective
agreements attached to the new PSR.
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CONCLUSION
9.1 The development of effective control mechanisms and the promotion of a
professional work ethos in the Public Service are of utmost importance. It is
only through the establishment of these processes that unethical behaviour in
the Public Service (as highlighted in this report) can be eradicated.
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INTRODUCTION
1.1 INTRODUCTION
| Background |
The accrual of leave by public servants is seldom
recognised by executing authorities and top management as a practice
with significant financial implications. Historically, the Public
Service has not been overly concerned with increases in leave liability
due to the fact that the cost of leave has never posed a short-term
problem. Accrued leave is currently only paid at retirement, discharge
(for specific reasons), death or when severance packages are taken by
officials. |
| The Basic Conditions of Employment Act (BCEA), 1997,
however, provides that accrued leave must be paid even at resignation.
The provisions of the Act, which will apply with effect from 1 June
2000, will place an additional financial burden on the Public Service.
The need to manage leave effectively, from a financial perspective at
least, is therefore becoming increasingly important. |
| Managers in the Public Service have a responsibility in
ensuring that sick, study and other forms of special leave are not
manipulated by public servants. The wrongful manipulation of leave can
result in substantial numbers of working hours being lost. This can also
translate into a cash cost, especially where departments have their
activities curtailed and have to appoint relief staff (additional) to
ensure the continuity of services. |
| Apart from its financial implications, leave is also a
vital human resource management (HRM) instrument at the disposal of
employers to ensure healthy and productive work environments. An aspect
sometimes ignored by management both in the public and private sectors,
is the effect of high levels of leave accrual on the health and
productivity of individuals. The primary objective of vacation leave is
to allow officials the opportunity to rest in order for them to remain
at their highest levels of productivity. |
1.2 PURPOSE AND SCOPE OF THE INVESTIGATION
| Purpose |
The financial and other implications of leave highlighted,
prompted an investigation by the Public Service Commission to determine
how effectively leave is managed in the Public Service. Specific
attention was given during the investigation to assess the following:
- What administrative systems are in place in the Public Service to
deal with the management of leave.
- Whether managers in the Public Service are familiar with the
relevant departmental and national prescripts regarding leave.
- How and where leave is recorded and whether the record systems are
effective.
- What is the current status of leave accrual in the Public Service.
- What problems are experienced in respect of the management of
leave.
|
| Scope |
The following eight (8) national departments were
identified and agreed to participate in the investigation:
- Agriculture
- Environmental Affairs and Tourism
- Foreign Affairs
- Justice
- Land Affairs
- Public Works
- Trade and Industry
- Water Affairs and Forestry
|
1.3 METHODOLOGY
| Interviews |
In order to obtain the required information, interviews
were conducted with officials responsible for the administration of
leave as well as a minimum of three line managers and six line
functionaries (two under each manager) per department. The interviews
conducted with line managers and their subordinates were not only
limited to components at the head offices of the participating
departments. Interviews were also conducted at the regional offices in
Mpumalanga Province, Northern Province and Western Cape Province of five
of the departments. The questionnaires used during the interviews were
designed to obtain information relevant to the purpose of this
investigation as highlighted in paragraph 1.2. |
| Inspections |
A total of 96 leave files (± 12 per department) as well
as the corresponding records captured on the Personnel and Salary System
(PERSAL) were inspected and compared with the records kept by line
managers. It was intended to determine whether leave taken is captured
and deducted from officials' leave credits. |
| Comparative studies |
In addition to the interviews and inspections at
departments, a number of studies private and public sector institutions
were consulted to obtain information on how leave is administered and
managed.
For purposes of this report a brief exposition of the measures that
regulate the management of leave in the Public Service is provided for
information and as background to the findings of the investigation. The
findings of the investigation at the departments are contained in the
chapters dealing with-
- the administration of leave (Chapter 3);
- leave accrual (Chapter 4);
- unethical conduct (Chapter 5); and
- key problems identified (Chapter 6).
The findings of the comparative study are provided in Chapter 7 and
lessons are drawn on how the management of leave can be improved in the
Public Service. |
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MEASURES REGULATING THE MANAGEMENT OF LEAVE
2.1 INTRODUCTION
A brief analysis of the measures regulating leave in the Public Service is
provided in this Chapter.
2.2 PUBLIC SERVICE STAFF CODE AND REGULATIONS
| Leave is a privilege |
The measures that regulate the granting of leave in the
Public Service were, at the time of this investigation, contained in the
Public Service Staff Code (PSSC) and the old Public Service Regulations
(PSR). With the exception of the measures in respect of special leave,
these measures have not been amended through the implementation of the
new PSR on 1 July 1999. It is important to note that leave of absence is
a privilege in the Public Service and that it is granted only with due
regard to the exigencies of the Public Service. |
2.2.1 Vacation leave
Employees in the Public Service accrue the following number of days
vacation leave per annum:
| Employees with at least ten years' service: |
36 days |
| Employees with under 10 years' service: |
30 days |
As opposed to leave systems which only count actual work days for leave
purposes, days of rest and public holidays that fall within a period of
leave are also counted as leave in the Public Service (hence the seemingly
high number of leave days that can be accrued per annum).
2.2.2 Sick leave
Employees are granted 120 days sick leave with full pay per cycle of
three years and a further 120 days with half pay per cycle of three years.
An additional 120 days sick leave with full pay may be granted to officials
with more than 10 years' service once during her/his public service career.
2.2.3 Maternity leave
Leave may be granted on the basis of 84 days leave with full pay for a
maximum of two confinements. Paid leave may be provided for more than two
confinements in exceptional circumstances (such as remarriage, death of a
child, pregnancy following a sterilisation, etc.).
2.2.4 Special leave
In addition to vacation, sick and maternity leave, various other forms of
special leave are granted to public servants. These include, inter
alia, the following:
- Examination leave to prepare (one day) and sit for an exam (one
day).
- Study leave on a 50/50 basis for purposes of preparatory work
relevant to a person's field of study. This is granted on the basis of
one day study leave for each day vacation leave taken.
- Officials who are selected by an amateur sport association to
take part as a competitor, coach or manager.
2.2.5 Leave gratuity
Leave gratuities, calculated by multiplying an official's total number of
days accrued leave by her/his annual salary on termination of service and
dividing it by 365, are payable to officials whose services terminate for
one of the following reasons:
- on account of continued ill-health (without own default);
- owing to the abolition of his/her post as a result of
reduction/reorganisation;
- if it will promote efficiency/economy (reasons other than unfitness
or incapacity); and
- on account of unfitness for his/her duties or incapacity to carry
them out efficiently (not misconduct).
- Death.
- Termination of a contract employee's services.
- Termination of an official's services due to his/her spouse being
transferred and there is no vacant post available in any department at
the spouse's new headquarters.
2.2.6 Control measures prescribed by the Public Service Staff Code and
the old Public Service Regulations
The PSSC and old PSR required that departments comply with the following
in terms of control measures:
- The utilisation of a standardised leave form which must be completed
in all cases where leave is taken.
- The keeping of a leave register in respect of each officer and
employee in which all absences from duty must be recorded.
2.3 THE NEW PUBLIC SERVICE REGULATIONS
| Greater responsibility on heads of
department |
The only amendment of the measures regulating leave that
coincided with the implementation of the new PSR on 1 July 1999 is the
requirement for departments to establish a written policy on special
leave. Departments need to negotiate such a policy in its bargaining
councils. Heads of departments will be responsible to monitor and
control leave. In this regard the new PSR provides as follows:
- An employee must be encouraged to fully utilise her or his
vacation leave in the year earned.
- Leave taken by an employee must be recorded accurately and in
full.
- It must be ensured that employees do not abuse sick leave.
The new PSR also provides that when a departmental budget is
presented the executing authority shall publish an annual report which
must, inter alia, include the following information:
- The average number of days sick leave taken in a department by
level and occupation. Total number of days sick leave taken. The
estimated cost for the department. The number of individuals who
took more than 15 continuous days sick leave in that year.
- The number of employees dismissed due to ill health.
|
2.4 THE BASIC CONDITIONS OF EMPLOYMENT ACT, 1997
| Additional financial burden |
In terms of Section 40 (b) of the BCEA, 1997, which
becomes operational on 1 June 2000, an employer must at termination of
employment pay an employee for any period of annual leave that the
employee has not taken. Thus the provisions of the BCEA will place an
additional financial burden on the State as employer. Greater pressure
will come to bear on managers in the Public Service to monitor and
contain leave accrual to acceptable levels. |
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THE ADMINISTRATION OF LEAVE
3.1 INTRODUCTION
This Chapter contains the findings of the investigation on how effectively
leave is managed and administered in the Public Service. The competency of the
role players involved with the management of leave and the efficiency of
procedures, control mechanisms and record systems are discussed.
3.2 COMPETENCE OF OFFICIALS INVOLVED WITH THE MANAGEMENT OF LEAVE
3.2.1 Knowledge of the applicable prescripts and procedures
| Lack of guidance |
The officials interviewed displayed a basic knowledge of
the measures regarding vacation leave. It was, however, observed that
certain managers and their subordinates were less informed of the
measures regarding sick leave and the various forms of special leave.
One of the major problem areas identified by managers was a lack of
guidance on how to deal with cases where an abuse of sick leave is
suspected.
All managers interviewed were familiar with the processes that
apply in their respective departments on the application and recording
of leave. Certain managers, however, were not aware of the instruments
that could be utilised to assist with the monitoring of absenteeism
(especially in larger components).
The majority of departments investigated have developed and held
orientation courses for newly appointed employees. These courses are
beneficial as officials are informed of the various conditions of
service that apply. It became, however, apparent that managers do not
nominate new officials to attend these courses due to work pressure.
It is essential that managers in the Public Service be provided
with the necessary training to enable them to fulfill their managerial
obligations in respect of conditions of service, and leave in
particular. The investigation revealed that there is a lack of
training opportunities for members of the management echelon. Whilst
there are orientation courses for new officials, there are limited
opportunities available for managers who are new appointees to the
Public Service. |
| Conclusion |
Following observations at the participating departments,
there is a need for guidance and training of managers on their roles
and responsibilities on the management of leave. |
3.2.2 Accessibility to appropriate prescripts
| Not all managers have access to
prescripts |
In order to ensure the effective management of leave,
managers in the Public Service should, as a minimum requirement,
have direct access to the relevant measures. This, however, was
somewhat lacking as the prescribed measures on leave are not provided
to all line managers. Of the managers interviewed, 20% were not in
possession of copies of the PSSC and the old PSR.
HRM components were of the opinion that managers could direct any
enquiries regarding the national prescripts to them. In practice this,
however, creates difficulties especially where national prescripts are
amended and managers are not informed timeously.
It was found that various explanatory memoranda and circular
minutes are compiled by the HRM components of departments wherein the
national prescripts as well a9 departmental procedures are explained
in detail. These documents are very useful to assist managers.
However, as with the national policy, not all managers are in
possession of such memoranda and circular minutes.
A limited number of departments have developed policy documents /
departmental prescripts regarding specific forms of leave. An example
is the development of department unique prescripts dealing with sick
leave for mental health illnesses and study leave. It was found that
managers in the departments that have developed these policies were
more confident in dealing with possible problem cases on the abuse of
leave. |
| Conclusion |
Not all managers have direct access to the appropriate
prescripts or are provided with guidelines which would assist them to
effectively manage leave. |
3.3 RECORDING OF LEAVE
The recording of leave is the final and most important step in the
administration and management of leave. If record systems are inefficient or
not utilised in the correct manner it will have a significant financial
implication for the State as employer. Leave gratuities are calculated in
accordance with the leave credits captured on the record systems kept by
departments. If the records are not accurate it will result in employees being
paid leave gratuities, at termination of service, which are based on higher
leave credits.
3.3.1 Process followed to record leave
| Leave recorded on PERSAL |
All departments use PERSAL administered by the
Department of State Expenditure to electronically record leave. In
addition to the electronic capturing of leave, the HRM components of
departments also keep leave files of all officials.
Each department has unique processes that precede the recording of
leave which are influenced by departments having regional or site
offices. All processes applied by the participating departments have
the following steps in common:
- Applications for leave are recommended by managers.
- The recommended leave forms are forwarded to the HRM components
for approval after checking whether an official has sufficient
leave credit.
- The approved leave is captured bn PERSAL whereafter it is filed
on the relevant official's leave file.
|
3.3.2 Factors that impact on the effectiveness of leave record systems
| Structure of a department |
A major concern that was identified is the effect that
the organisational structure of a department has on the effectiveness
of leave administration. Departments with regional offices as well as
those whose employees are situated in more than one building,
experience logistical problems with the recording of leave. |
| Decentralisation |
Most departments with regional offices are in the
process of decentralising HRM functions and establishing regional HRM
components.
In cases where decentralisation has not taken place, problems are
experienced in that leave forms have to be forwarded to Pretoria for
capturing. This creates obvious logistical and control related
problems. Leave forms do not always reach their intended destinations.
This is exacerbated by the lack of control mechanisms.
Although regional HRM components have been established problems are
still experienced in the recording of leave. Capacity to deal with the
added responsibilities in all regional offices that were inspected was
lacking. Infrastructure problems such as insufficient terminals and
limited access to PERSAL were evident. As a result, leave forms are
still forwarded by certain regional offices to Pretoria even though
regional HRM components have already been established. |
| Backlogs with the capturing of leave |
Officials responsible for the recording of leave are not
in all cases fully trained. At one regional office substantial
backlogs with the capturing of leave have developed (one and a half
years' leave have not been captured). The HRM component in the
specific region has even informed managers that the capturing of leave
is for the interim not deemed a priority.
It was also found that where departments have personnel situated in
different buildings in the same centre, similar logistical problems to
those with regional offices are experienced. At one department an
attempt has been made to overcome these logistical problems by
creating Management Support Services (MSS) components for all chief
directorates. It is premature to determine whether this approach will
be successful. However, the advantages of such a system include the
following:
- Leave forms are not conveyed over long distances before being
recorded. The logistical problems experienced are therefore
eliminated.
- The leave records kept by the MSS components and those on the
PERSAL system are more accessible to line managers and their
subordinates.
- The work load normally attached to the HRM component is spread
evenly throughout the Department, thereby diminishing the
possibility that backlogs will occur.
|
| Impact of the rationalisation process |
An aspect that has a direct impact on the recording of
leave is the rationalisation process which commenced in 1994.
The leave records of officials of the former homelands and self
governing territories are still being updated in various departments.
The leave records of numerous officials were obtained with great
difficulty. In many instances the records obtained are incomplete and
it is not possible to retrieve the lost information.
This will pose problems for departments when leave gratuities need
to be calculated of officials at retirement or when opting to take the
Voluntary Severance Package (VSP). The leave credits paid to such
officials can only be based on estimates, a situation which is totally
undesirable. |
3.4 CONTROL MECHANISMS
The record systems kept by departments can only be effective if there are
control mechanisms in place to ensure that all absenteeism is accounted for. A
basic control mechanism built into the process for the recording of leave, in
all departments, is the checking of leave captured on PERSAL by a Senior or
Principal Personnel Officer. However, this control mechanism is only effective
to ensure that applications for leave that has reached the HRM component are
recorded. Managers must ensure that-
- all absenteeism from work is accounted for by means of an appropriate
leave form; and
- the completed leave form reaches the HRM component.
| PERSAL not sufficient to control leave |
The fields created on PERSAL for the recording of leave in
itself cannot function as a control mechanism but must be supported by
other measures. It remains an electronic register entirely dependant on
the information captured by operators.
The following additional control measures were observed at the
participating departments:
3.4.1 Audits
In all departments leave records are audited regularly by the
Office of the Auditor General. Audits are also undertaken by the HRM
components of officials who retire or take the VSP. The audits are
conducted by comparing the leave records kept by the HRM components
with the records as captured on PERSAL.
3.4.2 Attendance registers
In certain components an attendance register is kept. Although this
is not a popular practice amongst officials (who view this as a
questioning of their integrity), the maintenance of attendance
registers in especially larger components has proven effective in
monitoring absenteeism.
3.4.3 Summaries of leave taken
In one department it is a requisite that each component submits a
summary of all leave taken by its officials at the end of each month
to the HRM component. This is a very useful practice to ensure that
all leave forms have reached the HRM component and are captured.
3.4.4 Providing leave credits on pay slips
In the past leave credits were provided to officials on a regular
basis on their pay slips. This served, to a limited extent, as a
control mechanism in that officials could verify whether leave taken
by them has been deducted from their leave credits. This practice,
however, has been stopped in most departments due to the fact that the
HRM components were inundated with enquiries. These enquiries emanated
from the fact that the leave credits provided on the pay slips were in
many instances incorrect. As a result of these enquiries one
department undertook an audit of the leave records of all its
officials. Currently leave credits are requested in most departments
from the HRM components only when the need arises.
|
| Few managers plan leave |
3.4.5 Leave planning
Through effective leave planning the management and control of
leave can be significantly simplified. Only a few managers interviewed
plan and schedule leave in their components. The reasons provided for
the non-planning of leave are the following:
- The work pressure in certain components remains constantly high
throughout the year. Managers of such components are of the
opinion that they are unable to follow a rigid leave plan.
- Leave is generally taken only during specific periods of the
year (school vacations, before and after public holidays, etc.).
This makes the need for leave planning redundant.
- Officials tend to take one or two days leave at a time. This
makes it impossible to plan and schedule leave.
3.4.6 Records kept by line managers
Most managers keep their own record systems in respect of leave.
This ranges from a schedule on which leave is recorded to filing
systems with copies of all leave forms. In certain components leave is
also recorded electronically on own devised systems.
Currently leave records kept by managers serve only as an easy
accessible source of information of leave taken by officials in their
components. As further discussed in- paragraph 3.4.2 the true
potential of these systems for control purposes has not yet been
realised by any of the departments.
In order to ascertain whether the record systems utilised by
departments are effective, the leave records of 96 employees were
inspected. The methodology used was to compare the leave records kept
by line management, the individual leave files kept by the HRM
components and the leave captured on PERSAL. The following issues were
of particular concern:
|
3.5 EFFECTIVENESS OF CURRENT LEAVE RECORD SYSTEMS
3.5.1 Leave forms are not filed chronologically
Leave forms are without exception not filed in chronological order, both
on the filing systems kept by the HRM components and line managers. This
makes the task of an auditor very difficult. This is a common problem
experienced by departments.
3.5.2 Not all leave taken is recorded
| Mistakes were identified |
In the majority of departments there were obvious
mistakes on the leave records of personnel as captured on PERSAL. A
number of days' vacation and sick leave were not captured on PERSAL.
This obviously has financial implications for the State as employer
when leave gratuities are determined. The problem is that leave forms,
for whatever reasons, do not always reach the HRM components. |
| Records of managers |
The leave records kept by line management were used by
the not used project team to verify the records on PERSAL. In many
instances it was found that leave forms filed on the records of
managers were not filed on those in the HRM component and consequently
not captured on PERSAL. The concern is that the leave records kept by
line managers do not form part of the auditing process in any of the
departments. Leave is only audited by comparing the leave files kept
by the HRM component with that captured on PERSAL. |
3.5.3 There are long delays before leave is captured
There is frequently a long delay from the time an application for leave
is made until it is captured. In certain cases it takes up to 12 months
before leave is captured. This is ascribed to the backlogs experienced with
the capturing of leave as a result of the rationalisation process and a lack
of capacity in certain of the HRM components.
According to personnel at one of the HRM components, employees could be
on a third period of leave (during a year) whilst the first and second
periods of leave have not yet been recorded.
3.5.4 Requirements in terms of medical certificates are not always met
In isolated cases it was observed that sick leave of more than three days
was not accompanied by a medical certificate, as required by the prescribed
measures on absence due to sickness.
Although the problems highlighted above were identified in a relatively
small sample of leave files, it is nonetheless a matter of concern. It is
clear that not all departments have the necessary control measures in place
to ensure that leave taken by their employees are recorded on PERSAL.
These findings are supported by statistics obtained from PERSAL.
According to PERSAL 489 828 public servants, including educators, did not
take any vacation leave during the period from 16 July 1998 to 15 July 1999
(48,2% of all public servants). A summary of vacation leave used in all
departments and provincial administrations is provided in Table 1.
Table 1: Summary of vacation leave used by public servants, including
educators, for the year ended 15 July 1999
| Organisation |
Officials currently employed |
Officials not using
vacation leave |
Officials using
vacation leave |
| |
Number |
Number |
% |
Number |
% |
| Eastern Cape Provincial Administration |
136024 |
115507 |
84.9 |
20517 |
15.1 |
| Free State Provincial Administration |
59983 |
29995 |
50 |
29988 |
50 |
| Gauteng Provincial Administration |
118734 |
46448 |
39.1 |
72286 |
60.9 |
| KwaZulu-Natal Provincial Administration |
156586 |
92570 |
59.1 |
64016 |
40.9 |
| Mpumalanga Provincial Administration |
51358 |
32103 |
62.5 |
19255 |
37.5 |
| Northern Cape Provincial Administration |
15519 |
7940 |
51.2 |
7579 |
48.8 |
|
Northern Province Provincial Administration |
114785 |
45304 |
39.5 |
69481 |
60.5 |
|
North West Provincial Administration |
67420 |
40878 |
.60.6 |
26542 |
39.4 |
|
Western Cape Provincial Administration |
67432 |
29943 |
44.4 |
37489 |
35.6 |
|
Independant Complaints Directorate |
85 |
0 |
0 |
85 |
100 |
|
South African Management and Development Institute |
77 |
0 |
0 |
77 |
100 |
|
Arts, Culture Science and Technology |
472 |
11 |
2.3 |
461 |
97.7 |
|
Welfare |
266 |
3 |
1.1 |
263 |
98.9 |
|
Office of the Deputy President |
144 |
2 |
1.4 |
142 |
98.6 |
|
Justice |
12830 |
1073 |
8.4 |
11757 |
91.6 |
|
Housing |
147 |
0 |
0 |
147 |
100 |
|
Office of the Public Service Commission |
108 |
0 |
0 |
108 |
100 |
|
Environmental Affairs and Tourism |
1290 |
42 |
3.3 |
1248 |
96.7 |
|
Home Affairs |
6331 |
412 |
6.5 |
5919 |
93.5 |
|
Public Works |
4312 |
377 |
8.7 |
3935 |
91.3 |
|
Health |
1271 |
361 |
28.4 |
910 |
71.6 |
|
Government Communications and Information Systems |
280 |
18 |
6.4 |
262 |
93.6 |
|
Office of the President |
184 |
6 |
3.3 |
178 |
96.7 |
|
Transport |
240 |
8 |
3.3 |
232 |
96.7 |
|
Mineral and Energy |
803 |
20 |
2.5 |
783 |
97.5 |
|
Constitutional Development |
193 |
5 |
2.6 |
188 |
97.4 |
|
Office of the Public Enterprises |
32 |
1 |
3.1 |
31 |
96.9 |
|
Trade and Industry |
959 |
17 |
1.8 |
942 |
98.2 |
|
Foreign Affairs |
1698 |
113 |
6.7 |
1585 |
93.3 |
|
Labour |
5104 |
170 |
3.3 |
4934 |
96.7 |
|
Water Affairs and Forestry |
24929 |
11919 |
47.8
|
13010 |
52.2 |
|
Government Printing Works |
868 |
9 |
1.0 |
859 |
99.0 |
|
State Expenditure |
341 |
8 |
2.3 |
333 |
97.7 |
|
Education |
633 |
10 |
1.6 |
623 |
98.4 |
|
Land Affairs |
2731 |
51 |
1.9 |
2680 |
98.1 |
|
Finance |
670 |
23 |
3.4 |
647 |
96.6 |
| Agriculture |
3046 |
142 |
4.7 |
2904 |
95.3 |
| Statistics South Africa |
673 |
77 |
11.4 |
59.6 |
88.6 |
| Sport and Recreation |
95 |
3 |
3.2 |
92 |
96.8 |
| South African Police Services |
125062 |
33255 |
26.6 |
91807 |
73.4 |
| Public Service mid Administration |
232 |
2 |
0.9 |
230 |
99.1 |
| Correctional Services |
31376 |
1002 |
3.2 |
30374 |
96.8 |
| Total for the Public Service |
1015323 |
489828 |
48.2 |
525495 |
51.8 |
Denotes inexplicably high number of officials who have not taken vacation
leave
| Conclusion |
Conclusion It is unlikely that so many public servants
would not have taken leave during a one year period. It would,
therefore, appear that-
- leave forms are not submitted to the HRM-components to be
captured; and/or
- there is a possible backlog of leave forms to be processed on the
PERSAL system; and/or
- leave forms are not completed at all.
PERSAL also indicated that in numerous individual cases it was found
that for many years no vacation or sick leave was ever captured on leave
records. |
-
LEAVE ACCRUAL
4.1 INTRODUCTION
The extent of the financial implications attached to accrued leave is
determined by the number of days leave that has been accrued by employees
before retirement or termination ofservice for other reasons. This Chapter
investigates the current status regarding accrued leave in the Public Service
and the reasons for high levels of accrued leave.
4.2 CURRENT STATUS OF LEAVE ACCRUAL IN THE PUBLIC SERVICE
| Measures do not leave accrual |
The current measures that regulate leave in the Public
Service do not place limit any limitation on the accrual of
vacation leave. Except in the case of personnel working with finances,
officials are also not forced to take a prescribed number of days leave
per annum. The aforementioned, in combination with the high number of
days leave that public servants can accrue per annum (30 to 36),
obviously results in high levels of leave accrual in the Public Service.
The officials interviewed as part of this investigation accrued on
average 9,5 days vacation leave per annum. This translates to an average
leave credit at termination of service (if a person has 35 years
service) of 332,5 days (nearly a year's salary in leave gratuities). A
random sample of five officials per department who retired or took the
Voluntary Severance Package confirmed this calculation.
The full gravity of the problem of high levels of leave accrual in
the Public Service is depicted in the table at Figure 1 which indicates
the distribution of accrued vacation leave in the Public Service as on
30 September 1998.
According to figures obtained from PERSAL a total of 513 512 public
servants have accrued in excess of 50 days vacation leave. This
translates to 56% of all public servants who are eligible to accrue
vacation leave (908 580). The picture is even bleaker when it is taken
into consideration that 292 071 public servants (32%) have accrued in
excess of 100 days vacation leave. |
The problem arising from the high levels of leave accrual for the Public
Service becomes clearer when one considers the huge financial implications
attached thereto. The State as employer's total liability on accrued vacation
leave, as on 30 September 1998, amounted to R11, 6 billion (R11,600,000,000).
An exposition of the average leave accrual per age group in the Public
Service provides insight into the short term implications of leave accrual
(Figure 2). The average leave credits for officials over the age of 55 (and
therefore those most likely to retire in the short term) are 103 days. The
State's liability in terms of the leave credits of these officials (who
comprise 7,7% of all Public Servants) is R1,2 billion.
| Conclusion |
The high levels of leave accrual in the Public Service is
a matter of concern both from a financial as well as HRfvl perspective.
There is a definite need to address this matter, either by revising the
national measures or encouraging officials to take the leave due to them
in the year that it is earned. |
4.3 THE REASONS FOR HIGH LEVELS OF LEAVE ACCRUAL
The following reasons were observed for high levels of leave accrual in the
participating departments:
4.3.1 Accrued leave is seen as a savings plan
The saving of leave credits is seen by-certain officials as a "nest
egg" for retirement purposes. A specific case was observed where an
official has accumulated more than 900 days vacation leave. Such officials
become accustomed not to take leave and their supervisors do not encourage
them to do so.
4.3.2 High work pressure
Constant high levels of work pressure do not allow officials to take
leave regularly. In components where continuous high work pressure is
experienced it was found that leave arrangements are being amended
continuously. In such components it frequently happens that officials are
called back from vacation to attend to urgent issues. Many officials in such
components develop a strong loyalty towards their colleagues and their work.
They are therefore reluctant to apply for leave for fear of being viewed as
deserting their team.
4.3.3 Negative attitude of managers towards the granting of vacation
leave
In isolated cases it was pointed out by the subordinates interviewed that
their managers have a negative attitude towards the granting of vacation
leave. In these circumstances many officials are reluctant to approach their
managers to request leave. Certain officials interviewed expressed
dissatisfaction about the fact that they have to submit a full motivation to
their supervisors for vacation leave. The reasons provided in their
motivations are interrogated by their supervisors and ill feelings prevail.
4.3.4 Lack of income
Officials at the lower levels indicated that they do not earn enough
money to be on holidays away from home. Thus there is no incentive for them
to take leave.
4.3.5 Lack of co-ordination of leave arrangements with spouses
Married couples experience difficulties to co-ordinate their leave
arrangements especially where they work for different employers. The
officials who experience such problems indicated that they would rather
avoid taking leave in a year than going on leave separately from their
spouses.
4.3.6 Dependency on income generated through overtime
Where remunerated overtime is performed for extended periods, staff are
reluctant to go on leave due to the fact that their income will be reduced
during this period. Staff are accustomed to the additional income generated
through overtime as being part of their basic salary.
4.3.7 Work environment
Although not specifically identified as such by the officials
interviewed, it was observed that leave accrual is higher in work
environments away from an office situation. Officials working in natural
surroundings are less exposed to stress and quite often experience higher
levels of work satisfaction.
4.3.8 Non recording of leave taken
Another contributing factor to high levels of leave accrual is the non
recording of leave taken by officials. As highlighted in Chapter 3.4 this is
the direct result of problems with the administration and control of leave.
Conclusion The reasons provided for the high levels of leave accrual may
be ascribed to very few managers actually encouraging their subordinates to
take leave. Not all managers in the Public Service have realised the
importance of leave as an instrument to create a healthy and productive work
environment.
-
UNETHICAL CONDUCT
5.1 INTRODUCTION
Many of the problems experienced with the management of leave can be
avoided if work ethics in the Public Service is improved. This Chapter
examines the problem areas as far as conduct is'concerned as identified by
officials.
5.2 THE ABUSE OF SICK LEAVE
The majority of managers interviewed were of the opinion that the
provisions regarding sick leave are being abused by officials. The most common
problem is that officials currently do not have to submit medical certificates
for sick leave in respect of periods of absence of three days and less, up to
a maximum of 10 days per annum.
| Increase in sickness |
According to the managers there has been an increase
over the last couple absence of years in the number of days sick leave
taken by officials. It has become common practice for many officials
to take sick leave for one or two days at a time before and after weekends
and pay days without submitting a medical certificate. In certain cases
subordinates stay away from work without informing their supervisors
of their absence. In some components managers are dealing with this
tendency by requesting officials to submit medical certificates for
all sick leave (even for one day at a time). In other components, however,
there is a level of apathy in dealing with the abuse of sick leave.
|
| Questionable medical certificates |
According to a number of managers the medical certificates
issued by medical practitioners are in many instances questionable. In
certain cases the information provided by subordinates to their
supervisors regarding the nature of their illness differs substantially
from what is indicated on the medical certificate. Managers are not sure
whether they are in a position to question doctors. |
5.3 TAKING LEAVE WITHOUT PRIOR NOTIFICATION
There is a tendency especially amongst lower level workers in certain
departments investigated to stay away from work without prior notice. When
such persons arrive back at work, managers must request them to complete
application for leave forms. According to the managers certain officials are
reluctant to do so.
At one of the components where this practice occurs frequently the manager
indicated that, apart from taking the matter up verbally with the relevant
officials, no substantive disciplinary steps are taken. The reason provided
was that the disciplinary proceduresrare too cumbersome and time consuming.
5.4 NOT ADHERING TO OFFICIAL WORKING HOURS
In larger components it is sometimes difficult for managers to monitor
absenteeism. Managers identified cases where officials arrive at work and sign
the attendance register. Immediately after signing the register they leave and
their colleagues cover for them whilst they are away.
In order to eliminate the occurrence of such misconduct the co-operation of
all levels of supervision is required. In one component investigated a manager
keeps a record of all absence from official duty with the cooperation of the
supervisors of the components under her control. As soon as an official's
absence totals more than eight hours he/she is compelled to apply for one
day's leave.
5.5 SELLING OF RECOMMENDED APPLICATION FOR LEAVE FORMS
At one of the departments it was mentioned that a messenger was caught
selling recommended application for leave forms back to officials who applied
for leave. The messenger's duty was merely to take leave forms from one
building to another in order for it to be recorded. The effect of the
misconduct of the messenger and the officials' involved was that leave taken
was not captured on PERSAL nor recorded on the leave files kept by the HRM
component. Had the misconduct not been identified and addressed, it would have
benefitted the officials involved in the long term through a higher leave
gratuity at termination of service.
5.6 CONCLUSION
The financial implications attached to leave provide incentive for
corruption. There are many phases in the process for the recording of leave
where the role players involved can ensure that a leave application is either
not completed, forwarded to the HRM component or captured on PERSAL.
-
CORE PROBLEM AREAS IDENTIFIED DURING THE
INVESTIGATION
6.1 INTRODUCTION
Various matters were highlighted during the preceding paragraphs which
raise concern about the management of leave in the Public Service. The purpose
of this Chapter is to briefly discuss those areas identified through the
investigation which will pose significant problems to departments.
6.2 LIST OF PROBLEMS IDENTIFIED
6.2.1 Not all officials are familiar with the relevant prescripts and
procedures
Not all officials are sufficiently informed of the national prescripts
relating to leave. Consequently certain officials possess limited knowledge
of certain forms of leave. This problem is compounded by the fact that the
national as well as departmental prescripts on leave are not provided to all
managers. Not all managers are therefore aware of their duties and
responsibilities in respect of the management of leave. Limited training
opportunities exist to assist managers in this regard.
6.2.2 There is a lack of department specific policies to supplement
the national policy on leave
Not all departments have procedure manuals and other guidelines in place
which assist managers in giving effect to their role on the management of
leave. There is especially a big void in respect of guidance to managers on
how to control absenteeism.
6.2.3 Logistical problems are experienced with the recording of leave
Departments which have regional offices in the provinces or are situated
in more than one building, experience logistical problems with the recording
of leave. Leave forms do not always reach the HRM components where it must
be recorded and filed.
6.2.4 Infrastructure problems are experienced in regional offices
A lack of sufficient infrastructure exists in certain cases where
regional HRM components have been established. There is a lack of capacity
in terms of trained staff, limited access to PERSAL and insufficient
terminals. These problems can be ascribed to the fact that many of the
regional HRM components have only recently been established and that
departments are still in the process of building capacity.
6.2.5 Leave records obtained from the pre-rationalised public services
are incomplete
Difficulties are being experienced with the calculation of leave
gratuities of officials of former homelands and self governing territories
due to incomplete leave records. Although the rationalisation process
commenced in 1994, departments are still trying to obtain and update the
leave records of officials who were absorbed into the new Public Service.
6.2.6 Control measures are insufficient
There are insufficient control measures in place in certain departments
to monitor absenteeism and to ensure that all leave are recorded. A
contributing factor in this regard is the fact that departments do not
utilise the records kept by line management when conducting audits. The real
value of the leave records kept by managers for control purposes has not
been realised yet.
6.2.7 Mistakes were identified on leave records
Various mistakes were. identified on the leave records on PERSAL and on
the leave files kept by the HRM components. The most important of these was
that leave recorded by managers were not always recorded on PERSAL. It was
also observed that there are long delays from the date of application for
leave until it is captured.
6.2.8 Leave accrual in the Public Service is excessively high
The figures obtained from PERSAL and from the departments who
participated in the investigation indicate that leave accrual is excessively
high in the Public Service. The current prescripts make it difficult to
limit leave accrual other than encouraging officials to take leave.
6.2.9 Officials are guilty of unethical conduct in respect of leave
Managers must cope with various forms of unethical conduct by their
subordinates on the abuse of the leave provisions. Sick leave especially is
abused by officials and not all managers are confident in dealing with such
cases.
6.3 CONCLUSION
The problems highlighted in paragraph 6.2 will need to be addressed if the
Public Service is to succeed in managing leave effectively. Various problems
relate to the inability of departments to ensure that all leave taken is
actually recorded. In view of the financial implications attached to accrued
leave, specific attention will have to be given to the control processes.
These control processes must ensure that all leave is recorded.
-
LEAVE ADMINISTRATION AS APPLIED BY OTHER
INSTITUTIONS
7.1 INTRODUCTION
Bearing in mind the problem areas identified during the investigation, with
specific emphasis placed on obtaining information on leave accrual and the
control of leave, the following public and private institutions were
consulted:
ESKOM
TRANSNET
The Post Office
The Greater Johannesburg Metropolitan Council
The Northern Pretoria Metropolitan Sub-Structure
The South African Breweries (SAB)
First National Bank (FNB)
NISSAN
7.2 ISSUES RELEVANT TO THE SOUTH AFRICAN PUBLIC SERVICE
7.2.1 The control of leave
| Similar difficulties are experienced |
A number of lessons can be learnt from the practices
applied in these institutions. The existing problems facing the South
African Public Service in terms of the administration and control of
leave are by no means unique. Institutions in both the private and
public sectors have to overcome similar difficulties in ensuring that
all leave is recorded.
Certain institutions, such as ESKOM and the South African Post
Office (Ltd) have started to creatively deal with the problems
relating to the control of leave. ESKOM is currently piloting a system
whereby certain leave categories are electronically captured by
individual supervisors. ESKOM endeavours through this exercise not
only to have direct control over leave transactions, but also to
minimise administrative delays. This also gives supervisors access to
do enquiries directly on the electronic leave register. |
| Absenteeism control |
The South African Post Office (Ltd), on the other hand,
has implemented a comprehensive absenteeism control policy to assist
managers. The objectives of this policy are to reduce the number of
hours spent by managers in dealing with problems stemming from
unauthorised absences (such as loss of production time and training
temporary substitutes). It is envisaged that with such a policy
attendance will improve if management controls absence. |
| Attendance registers |
In addition to the initiatives of ESKOM and the South
African Post Office (Ltd) it was ascertained that the maintaining of
attendance registers is a common practice in nearly all institutions.
At certain institutions leave records are compared with attendance
registers to ensure that all absenteeism from work are accounted for.
With the exception of the pilot study being conducted at ESKOM, all
institutions consulted follow a similar approach to the Public Service
in that leave is recorded at their HRM components (or finance
components). Leave forms must therefore be conveyed from the manager
who has approved it to the component where it is recorded. In order to
ensure that the leave forms reach the component where it is recorded,
managers in one of the institutions, as a control measure, ' use a
register which accompanies all leave forms. The component responsible
for the capturing of the leave must acknowledge receipt of each leave
form on the register whereafter the register is returned to the
relevant manager.
It is also interesting to note that the South African Public
Service is in actual fact more advanced than certain of these
institutions as far as the electronic capturing of leave is concerned
(PERSAL). The challenge, however, is to put the necessary mechanisms
in place to ensure that the correct information is captured on PERSAL. |
.2.2 Accrual of leave
| Leave policies limit leave accrual |
The institutions consulted do not experience the same
problems in terms of high levels of leave accrual than that
experienced in the South African Public Service. A limitation of leave
accrual is embodied in the leave policies of these institutions.
Employees are generally only allowed to accrue a limited number of
days leave per annum and in many instances they are obliged to take
prescribed periods of leave per annum. In many institutions, accrued
leave is paid out on an annual basis.
The leave policy of NISSAN (Automakers (Ltd)) serves as an example
in this regard. Employees at NISSAN are entitled to between 15 and 25
work days annual leave depending on their job grades and years'
service. At least 15 consecutive days annual leave must be taken per
year. Any portion of the mandatory leave not taken is forfeited.
Accumulated leave in excess of twice an employee's annual entitlement
is paid out each year at the end of February. |
7.3 CONCLUSION
Whilst there are similarities in the problems which the Public Service and
these institutions experience, on the control of leave, the initiatives taken
by certain institutions should serve as an example of what can be done in this
regard. It is clear from the information obtained on the leave policies of
these institutions that the Public Service will only be able to effectively
deal with high levels of leave accrual by amending its leave policies
accordingly.
-
PROPOSALS TO IMPROVE THE MANAGEMENT OF LEAVE
8.1 INTRODUCTION
The ultimate responsibility to ensure that leave is managed effectively in
the Public Service lies with individual departments. Bearing in mind the
inherent deficiencies of leave management in the South African Public Service
identified through this investigation, and the lessons to be learnt from other
institutions, proposals are being made in this Chapter on how the management
of leave could possibly be improved.
8.2 DEVELOPING A COMPREHENSIVE DEPARTMENTAL POLICY ON LEAVE
According to paragraph 11.11 of Resolution 3 of the Public Service
Coordinating Bargaining Chamber, implemented with the new PSR on 1 July 1999,
departments will have to establish a written policy on special leave and
negotiate such a policy in its bargaining council. Nothing, however, precludes
departments from developing comprehensive departmental policies on all forms
of leave as long as it does not deviate from the national prescripts on leave.
Due consideration should be given by departments to the development of such a
policy which, apart from the compulsory provisions on special leave, could
also provide for the following:
8.2.1 Clarification of the national prescripts
The inclusion of the national prescripts in the departmental policy
should be considered in order to make the policy as comprehensive as
possible. The wording of the national prescripts could be simplified so that
it is understood by all officials in the department.
8.2.2 Explaining the procedures for the recording of leave
The entire process that must be followed for the application, approval
and recording of leave must be explained in detail. This can serve as a
procedure manual for those employees involved with the administration of
leave as an annexure to the policy document.
8.2.3 Control measures to be applied
The departmental policy should give guidance on the control measures
which should be utilised by managers and the components responsible for the
recording of leave. Consideration should be given to provide for the
following practices.
- Establishing compulsory record systems to be kept by management
The record systems kept by individual managers proved invaluable during
this investigation as an extra source through which leave records could be
audited and verified. It also became apparent that these records are not
utilised to their real value by departments as a control mechanism.
Consideration should be given to request managers in the Public Service to
keep formal records of leave taken. A leave file should be kept in respect
of each official in their components in which copies of all application
for leave forms should be filed. The responsibility to maintain the record
system in a component may be delegated to any official deemed appropriate
by the manager.
| Records of managers to be |
As a standard arrangement the leave records kept by used
for audits management should be utilised when audits of leave records
are conducted. These records can be forwarded to the HRM components
when the audits are conducted.
If an official is transferred or promoted the leave records kept by
her/his supervisor should accompany the leave records of the HRM
component to her/his new department.
- Establishing procedures whereby managers can control that leave
has been captured
All leave forms forwarded to HRM components should be accompanied
by a register (for each employee) on which acknowledgment of receipt
must be indicated. The register must be safeguarded with the
relevant leave file of the employee kept by the manager.
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| Printouts from PERSAL to be provided to
managers |
Managers should on a monthly basis be provided with
printouts from PERSAL on the leave taken by officials in their
components. The printouts must be compared with the leave records kept
by managers and any discrepancies should immediately be cleared with
the HRM component.
Excessive unauthorised absences can seriously affect the Public
Service's productivity. Absences can be limited to acceptable levels
by introducing appropriate management practices. By controlling
absence managers will also ensure that leave taken is accounted for.
Attendance registers can play an important role in verifying that
all leave has been captured. Not all components , however, are large
enough to warrant the keeping of an attendance register. In smaller
components managers could make notes of absences from work in their
diaries.
There is no substitute for personal supervision and it is the
manager's responsibility to ensure that people arrive at work,
perform during working hours and leave on time.
In cases where electronic access systems are in place, these
systems could be utilised to ensure that all absence from work is
accounted for. This, however, should not replace the responsibility
on management to keep their own attendance registers.
Attendance registers should furthermore be used to reconcile
applications for leave submitted in a specific component during a
month with actual absences from work as reflected on the attendance
register.
If the practice of using attendance registers is implemented in
departments, employees should be informed of the important role that
it plays in controlling leave of absence. Employees should not be
given the impression that their integrity is being questioned.
Apart from audits conducted by the Auditor-General, departments
should of their own accord, audit all leave records on an annual
basis. If this practice is applied consistently it will eliminate
problems experienced with the calculation of leave gratuities at
termination of service.
The responsibility of conducting the audit could be assigned to
the HRM component or the internal audit unit. The leave records kept
by managers should be used during such audits.
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8.2.4 Providing guidance on how to deal with sickness absence
It should be considered to incorporate the following in departmental
policies to minimise the abuse of sick leave:
- An employee must contact her/his supervisor personally or via another
person on the same day that she/he falls ill that she/he will not be
able to be on,duty.
| Sickness absence to be monitored |
The number of times that an employee takes sick leave
without submitting a medical certificate should be monitored
carefully. According to the PSSC a head of department may, at her/his
discretion, require the submission of medical certificates in respect
of periods of three days or less, notwithstanding the provision that
sick leave without a medical certificate may be granted for an
aggregate of 10 days during any year. Departments could in this case
be guided by the provisions of the BCEA, 1997, which provides that an
employee who takes two days or less sick leave on a third occasion
within a period of eight weeks must produce a medical certificate.
- Managers should pro-actively discuss the reasons for absenteeism
with their subordinates in cases where a high frequency of sick
leave is taken without the submission of medical certificates. It
should be pointed out to subordinates that the frequency of sick
leave absence is a source of concern for management. Attendance
therefore will have to be improved to prevent the concession of
uncertified sick leave from being forfeited. If a high frequency
of sick leave without submitting a medical certificate persists,
the concession of uncertified sick leave may be suspended. The audi
alterim partem rule should obviously be applied before
such an action is taken.
- Managers must ensure that the medical certificates issued by
doctors comply with the following:
- The medical certificate is original, not a copy.
- It is issued by a registered medical practitioner.
- It includes information on the consultation date, the nature
of the illness and sick leave recommendations.
- It includes an explanatory comment if the date on which the
official was booked-off precedes the consultation date.
- Further guidance should be incorporated in the policy on how to
deal with cases where it is believed that sick leave is being
abused.
- As indicated in Chapter 2 of this report, departments are
required by the new PSR to report on sickness absence levels. The
Public Service Commission has activated an investigation to
establish the nature of information required to effectively
monitor and manage absence due to sickness leave. Departments and
provincial administrations will be requested to participate in the
investigation. The findings of the investigation can also be
incorporated in departmental policies and procedures.
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8.2.5 Limiting leave accrual
| Encourage staff to take leave |
Managers should be informed of their role in ensuring
that officials take sufficient periods vacation leave to rest.
In cases where officials have excessively high levels of accrued
vacation leave, managers must actively encourage them to take extended
periods of vacation leave. |
8.3 DECENTRALISING LEAVE ADMINISTRATION
| Create the necessary infrastructure |
As indicated, various departments have commenced with the
decentralisation of HRM functions. Leave, however, in many instances is
still administered centrally. Although cognisance is taken of the
financial constraints within which departments and provincial
administrations operate, due consideration should be given to invest
time and money in establishing the infrastructure required in regions to
effectively manage leave. Currently leave has a substantial long term
financial implication through the payment of leave gratuities. The
implementation of the BCEA, 1997, in the Public Service will also create
short term financial implications on leave.
Access to PERSAL should therefore be provided in all regions where
HRM components have been established and sufficient terminals should be
provided. PERSAL should also be more accessible to managers. The
decentralisation of leave administration should coincide with a
strengthening of control measures. The prescribing of control measures
as proposed in paragraph 8.2.3 should receive priority. |
8.4 INCREASING COMPETENCY TO DEAL WITH LEAVE ADMINISTRATION
| Provide training |
Training is necessary at all levels to ensure that the
relevant role players are sufficiently informed of their
responsibilities on the administration and management of leave.
Orientation courses must be scheduled more regularly and should
include information regarding the leave measures which apply in the
Public Service. It must be emphasized that the responsibility rests with
each official to maintain high standards of ethical behaviour.
Managers should be provided with training and' refresher courses (in
cases where procedures and prescripts change) regarding their
responsibilities on leave management and administration. Consideration
could be given to include the departmental policy on leave as part of
the course material.
Officials who are delegated the responsibility to maintain leave
records for managers, must be trained on the relevant procedures.
Officials who capture and authorise leave on PERSAL should receive
adequate training in order to discharge their responsibilities
effectively. Sufficient numbers of officials must be trained to capture
leave on PERSAL. This will alleviate problems experienced with capacity,
especially in the regions. |
8.5 LIMITING LEAVE ACCRUAL
| DPSA to revise leave policy |
The problem with high levels of leave accrual can only
partially be addressed through encouraging officials to take leave.
There would also have to be a revision of the national prescripts. The
Department of Public Service and Administration should therefore
consider developing such a leave policy on the following lines:
- Employees only be allowed to accrue a limited number of days leave
per annum.
- Employees be obliged to take a prescribed period of leave per
annum which will be forfeited if not taken.
- Sick leave cycle be reduced from 120 days to 60 days with full pay
in a cycle of 3 years.
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-
CONCLUSION
It is trusted that this report will reinforce the importance of effective
leave management in the Public Service. Specific advice have been outlined on
how to improve the management of leave and the steps departments need to take.
| Role of managers is important |
An important aspect that came to the fore during this
investigation is the prominent role that individual managers play in
ensuring effective leave management. Managers have already put a great
deal of effort into the establishment of record systems. It needs to be
built on as a control mechanism.
Through the development of effective control mechanisms the
manipulation and misuse of leave provisions in the Public Service can be
minimised. It must be stressed that the impact of the human factor on
these control mechanisms, however, could reflect negatively on its
success. |
| Promote a professional work ethos |
The promotion of a in the Public Service is professional
work therefore of utmost importance. It is only through the
establishment of ethos such an ethos that unethical behaviour as
highlighted in this report can be eradicated. |
ANNEXURE
SUMMARY OF CHECKLISTS UTILISED DURING INTERVIEWS
- INTERVIEW WITH THE HEADS OF THE PERSONNEL AND LEAVE ADMINISTRATION
COMPONENTS:
- POLICY
1.1 Analysis of departmental policy
- Does your department have a departmental policy on leave and if so
what does it entail?
- Who are/were the role players in the formulation of the departmental
policy on leave?
- To whom and how is the departmental policy, including amendments
thereto, communicated?
1.2 Access to national policy
- To whom and how is the national policy, including amendments thereto,
communicated?
- Are new appointees provided with training in respect of the national
prescripts?
- ADMINISTRATION/MANAGEMENT 2.1 Process for approving and recording
leave
- Describe the process for the recording of leave.
- The following should be probed if not covered by the answer provided
in respect of questions (a):
- Are copies of application for leave forms returned to line managers?
- Are individual leave files updated?
- Is the number of days leave taken captured on PERSAL? (iv) How is
the number of days leave to a person's credit determined?
- How long does it take on average to register/capture application for
leave on both individual leave files and on PERSAL?
- Are line management and staff informed of their leave credits
regularly?
2.2 Responsibility of management
- Are line managers required to keep leave records of personnel, and if
so is a specific record system prescribed?
- Are personnel encouraged by line managers to take the leave accrued in
a year?
- Is it required of line managers to provide officials with their leave
credits?
- TENDENCIES IN RESPECT OF LEAVE
3.1 Periods of leave taken
- Are there preferences on the taking of leave during specific periods
of the year?
- Are there preferences on the taking of leave for shorter (one or two
days at a time) or longer periods (two or more weeks at a time)?
CONTROL
- Are leave records audited?
- If so:
- What is the frequency of the audits?
- How are audits conducted?
- Who is responsible for the audits?
- Besides the registering and auditing of leave, what other
administrative control measures are utilised?
- The following should be probed if not covered by the answer provided
in respect of question (a):
- Sick leave, i.e:
- High frequency of sick leave (one to two days at a time).
- Verification of medical certificates.
- Mismanagement of leave by line managers, i.e:
- Not submitting application for leave forms to the Personnel
Component.
- Not submitting application for leave forms to the Personnel
Component timeously.
- Not keeping adequate records.
- Study leave, i.e:
- Submitting of examination time-tables.
- Maternity leave, i.e:
- Record of the number of confinements.
- Specialised authority for such additional confinement.
- CONSTRAINTS EXPERIENCED IN RESPECT OF THE MANAGEMENT OF LEAVE:
- What constraints are experienced in the general administration of
leave, with specific reference to:
- The mechanisms for the recording/capturing of the number of days
leave taken on both the individual files, as well as on PERSAL.
- The auditing of leave records.
- The responsibilities of line managers as far as leave is concerned.
- Control measures on leave. (v) Other constraints being experienced.
- What constraints are being experienced in respect of the national
policy regarding all forms of leave?
- INSPECTION: COMPONENT RESPONSIBLE FOR THE ADMINISTRATION OF LEAVE
- A copy of the Departmental Leave Policy (if any), was obtained and
analysed.
- Individual leave files were inspected (sample correspond with officials
interviewed in components).
- The number of days leave taken/recorded on selected individual leave
files were checked against information captured on PERSAL.
- Copies of reports of auditing teams were obtained and analysed.
- The mechanism/procedure for the recording of the number of days leave
taken was inspected.
- Information was obtained on leave credits paid out to officials who
recently retired or have taken the voluntary severance package.
- INTERVIEW WITH LINE MANAGERS:
- POLICY
1.1 Analysis of departmental policy
- Are you aware of the departmental policy (if any) on leave and what it
entails?
- Are you in possession of a copy of the departmental policy or how is
it communicated to you?
- Were you at any stage involved in the formulation of the Departmental
Leave Policy?
1.2 Access to national policy
- Do you have a copy of the Public Service Staff Code and the Public
Service Regulations and are amendments thereof provided to you? (Ask
questions to determine knowledge of the prescripts)
- ADMINISTRATION/MANAGEMENT
2.1 Process for approving and recording leave
- Describe the prescribed procedure in your department for submitting
leave forms.
- Do you keep your own record system of leave taken ih your component?
- Is the responsibility for the keeping of the records system assigned
to any specific official?
- How soon after application for leave forms were submitted to the
Personnel Component are copies thereof returned for your own record
purposes, if at all?
- Are you informed programmatically (on pay slips) of leave credits or
can leave credits only be obtained through a formal request to your
personnel component?
2.3 Responsibility of managers
- Do you inform your subordinates of their leave credits, and if so, how
regular?
- Do you have a leave policy for your specific component supplementary
to the departmental policy, and if so, what does it entail?
- Do you provide new appointees in your component with training
regarding the prescripts in respect of leave?
- Is leave planned and scheduled well in advanced in your component?
- e) If so:
- When is this done?
- Is the leave schedule adhered to?
- Do you encourage employees to take the leave accrued during a given
year?
- TENDENCIES IN RESPECT OF LEAVE
3.1 Periods of leave taken
- What is the tendency in respect of the periods of leave taken with
your component? (Do subordinates take long leave or one or two days at a
time)
- In pursuance of question (a), what is the impact thereof on services
rendered by your component?
- Do you have any preferences in respect of how leave should be taken
(the duration thereof)?
- Is there a period during the year when the taking of leave is
preferred?
- What are the line function activities of your component?
3.2 Accrual of leave
- How many years' service do you have and how many days leave have you
accrued?
- CONTROL
- Are PERSAL printouts requested from time to time in order to audit
your own and your subordinates' leave records?
- What control measures are exercised in respect of leave with specific
reference to:
- The abuse of sick leave.
- Ensuring that all leave is registered on the individual leave files.
- Other control measures.
- CONSTRAINTS EXPERIENCED IN RESPECT OF THE MANAGEMENT OF LEAVE:
- What constraints are experienced in the general administration of
leave, with specific reference to:
- The mechanisms for the recording of the number of days leave taken.
- The auditing of leave records.
- The responsibility of the Head of the Personnel Component as far as
leave is concerned.
- Control measures pertaining to leave.
- Other constraints experienced.
- What constraints are experienced on national policy regarding all
forms of leave?
- INSPECTION: LINE MANAGERS
- Copies of annual leave schedules were obtained.
- Leave files/records of the Line Manager were inspected and compared with
that of the personnel component. m
- Copies of the unique leave policies of components were obtained.
- INTERVIEW WITH LINE FUNCTIONARIES:
- POLICY
1.1 Departmental policy
- Are you informed of and familiar with departmental prescripts (if
any), on leave?
- Are these prescripts accessible to you?
1.2 Access to national policy
- Are you familiar with and do you understand the measures pertaining to
leave? (Ask questions to determine knowledge of the prescripts)
- Are these prescripts accessible to you?
- ADMINISTRATION/MANAGEMENT
2.1 Process for approving and recording leave
- Is record kept of the number of days leave taken within your
component?
- If so, are such records easily accessible to you?
- Are you informed of your leave credits by your supervisor/Personnel
Component, and if so, how regular?
2.2 Responsibility of management
- Are you encouraged to take the days leave accrued in a given year?
- Is leave planned and scheduled well in advance in your component?
- How rigid is the leave schedule adhered to?
- TENDENCIES IN RESPECT OF LEAVE
3.1 Periods of leave taken
- How regular do you take leave and what is the normal duration of your
leave?
3.2 Accrual of leave
- How many days leave (credit) have you accrued up to now an how many
years have you been in service?
- In cases where a high number of days leave has been accrued- what is
the reason for not taking leave?
- CONTROL
- When you are on sick leave, is it required of you to attach a medical
certificate to your application for leave form?
- When applying for study leave is it required of you to attach an
examination time table to your application for leave form?
- Is there any system which is utilised to verify/register hours of
attendance and if so what does it entail?
- CONSTRAINTS EXPERIENCED IN RESPECT OF THE MANAGEMENT OF LEAVE:
- Do you experience any problems when applying for leave, and if so,
what are the nature of these problems?
- Do you experience any problems/shortcomings with the recording (leave
credits) and recordkeeping (filling systems) of leave, and if so, what
is the nature of these problems/shortcomings?
- Do you experience any other problems in respect of leave in general?
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