How to Create an Attendance Policy That Works

Attendance policies can help your business run smoothly. When expectations are clear, employees know what’s required and there can be a sense of fairness for everyone involved.

A well-structured policy helps avoid confusion, ensures accountability, and keeps operations running seamlessly. Let’s dive into the key elements of an effective attendance policy to help you with creating one or improving your current one!

Setting Clear Expectations

Let’s start with the basics, what does being “on time” mean for you? Without a clear definition, employees might assume they have more leeway than you’d prefer. You’ll want to be specific about when employees should be at their workstations (or logged in if you’re remote), what constitutes tardiness, and how absences will be categorized and marked.

As an example, your policy might include: "Employees are expected to arrive at their designated work location on time and be ready to perform their job duties. Arriving more than 10 minutes past the scheduled start time is considered tardy. Repeated tardiness or unexcused absences may lead to disciplinary action."

By making it clear, you remove any gray areas and create reliability.

Here’s what the US Office of Human Resource Management has to say about tardiness:

Defining Your Notification Process

Life happens, we know and understand this! Illnesses, emergencies, and unexpected delays are bound to happen. However, your attendance policy should outline exactly how employees should handle these situations. You'll want to answer these questions:

• Who should employees notify?
  • Is it their direct supervisor or HR?
• How should they notify them?
  • Would you like an email, phone call, or should they mark it in their company portal?
• When should they notify them?
  • How soon before their shift for an unplanned absence?

Here’s an example of what you might have in your policy:

"Employees must notify their direct supervisor at least two hours before their scheduled start time if they will be late or absent. For planned absences, requests should be submitted at least one week in advance. Failure to follow these procedures may result in disciplinary action."

Having a simple, standardized process makes it easier for your employees to comply and for managers to track attendance fairly.

Types of Disciplinary Action 

Nobody likes to talk about discipline, but it’s necessary to maintain accountability. Your policy should be upfront about what happens when attendance expectations aren’t met.

As an employer you can take various disciplinary steps to address repeated tardiness and absence to ensure your team is staying compliant with company policy.

Here are some approaches:

1. Verbal Warning: The first step might be an informal conversation where you remind your employee of attendance expectations and the impact of their lateness. This serves as a warning while giving the employee a chance to correct the behavior.

2. Written Warning: If lateness continues, you may want to issue a formal written warning. This is crucial as it creates a clear record of the issue, outlines the times and dates of tardiness, and communicates the expectations for improvement.

A written warning also serves as a legal safeguard, demonstrating that you have made efforts to address the issue before taking further action. It should clearly state potential consequences if the behavior continues, to ensure transparency and fairness.

3. Suspension: For employees who continue to be late despite previous warnings, you may want to issue a temporary suspension. The duration can vary based on company policy and the severity of the issue.

Should you pay your employee during a suspension? It depends.

Under the Fair Labor Standards Act (FLSA):

Exempt Employees (typically salaried) must be paid during a suspension if the suspension is due to attendance issues. Please note - this does not include suspensions for serious misconduct like sexual harassment, workplace violence, or alcohol/drug use. 

Nonexempt Employees (typically hourly workers) do not have to be paid during a suspension unless they use accrued paid time off (PTO) or the company has a policy stating otherwise.

4. Termination: If repeated tardiness continues despite multiple corrective actions, termination could be the final step. This should only occur after all other measures have been exhausted.

If you establish clear attendance expectations and enforce your policies, this can help prevent chronic tardiness and promote accountability.

But remember, you will want to properly document all occurrences in your timekeeping system.

Ask us how!

Why a Strong Attendance Policy Matters

A well-crafted attendance policy isn’t just about tracking hours. When employees know the rules, they’re more likely to follow them. This will reduce confusion and potential conflicts.

If your business doesn’t have a clear attendance policy (or if it’s been a while since you last reviewed it), now is the perfect time to refine it and add it to your employee handbook. A strong policy not only keeps things running smoothly, but helps build a fair and professional work environment for everyone.

At Megapay, we’re here to help businesses streamline their HR processes—from payroll to compliance (and beyond). Need assistance fine-tuning your policies or have HR questions? Reach out to us today!