Insights > HR > How to create an attendance policy: A guide for employers

Updated: September 18, 2025

How to create an attendance policy: A guide for employers

Published By:

Jon Davis

A well-defined attendance policy is fundamental to address one of the main issues in workforce management: employee absenteeism. Attendance policies serve as guidelines that promote consistency, accountability, and productivity within the workplace. And since over half of corporate leaders want attendance levels to rise, the policies can also be a good way to keep everyone on the same page.

Key takeaways

  • Clearly define attendance expectations and absence types
  • Ensure legal compliance
  • Effectively communicate policies
  • Implement transparent procedures for reporting and tracking attendance

By clearly outlining attendance expectations, employers can foster an environment where employees feel responsible for their presence and contributions at work. This sense of accountability is key to mitigating excessive absenteeism.

Defining attendance expectations and absence types

To help prevent a high absenteeism rate, it is a good idea for your company’s employee handbook to clearly define attendance expectations. This ensures that all employees have access to the policy.

 

The employee attendance policy should outline the minimum attendance threshold for workers to maintain employment and specific benefits. It should also highlight the importance of punctuality and connect how the policy correlates to performance and productivity.

  • It is important to define types of absences, including excused and unexcused absences. Specify the process for requesting different types of leave (sick, vacation, personal, etc.) and the documentation required. This ensures fairness and consistency
  • That said, things happen. It is a good idea to include provisions for emergency leave or unforeseen circumstances, allowing for flexibility within the policy
  • Finally, define paid vs. unpaid time off and the conditions that dictate each category. This ensures that employees understand their entitlements

 

Now that you understand the key elements to include in your policy, let’s turn to reporting, time-tracking systems, and measures.

How to set up clear procedures for reporting and tracking attendance

Putting together an effective employee attendance policy includes developing systems for reporting absences. The systems should be user-friendly, encouraging compliance and transparency.

 

Typically, businesses establish a designated contact point for employees to request and report absences. For example, there are digital tools for employees to record and request absences, allowing managers to track these reports. Digital systems can offer more privacy and confidentiality.

 

Systematically tracking attendance systematically is necessary to maintain accountability and identify patterns of absenteeism. OnPay’s HR software allows you to track attendance and compile reports and analyses of attendance patterns. It can also help you achieve accurate reporting by leveraging that data to verify payroll reconciliation.

 

However you track attendance, you’ll want your supervisors to know how to monitor attendance data without infringing on employee privacy. Additionally, consult managers to uncover potential attendance policy improvements.

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What employers need to know about compliance with labor laws

While understanding that it is important to craft a work attendance policy, install accurate reporting, and tracking measures, any employee contract must adhere to labor laws. Regular attendance is essential to business operations. However, attendance policies and demands cannot conflict with existing law and regulations.

 

Familiarize yourself with the Fair Labor Standards Act (FLSA) and its implications for employee leave and absences. Understand the Family and Medical Leave Act (FMLA) and how it affects employee leave entitlements. Stay updated on local sick leave ordinances relevant to your business. These can vary by state and jurisdiction.

 

When crafting your attendance policy, include disclaimers that indicate how your policy adheres to relevant laws. Ensure that it clearly outlines procedures, rights, and obligations for both employers and employees. Be as transparent as possible.

 

Finally, remember that an attendance policy isn’t fixed. Laws change and legislation evolves. Your attendance policies must adapt. This is why regular reviews of the policy and statutes can make a big difference when it comes to compliance.

Building a flexible attendance policy that supports both business and staff

An attendance policy for employees must fit with the current workplace landscape. In today’s business world, accommodating remote work and flexible schedules is increasingly necessary for employee well-being and productivity. It’s important to promote a culture where employees can openly share their availability and preferences.

 

Develop remote work guidelines that align with attendance expectations. Also ensure that business functions continue without interruption but allow flexibility. Encourage team leads to accommodate employees while remaining clear about work expectations. To motivate employee presence, consider instituting a nondiscretionary bonus for attendance.

 

If you find that some employees are collecting absences because of boredom or a lack of work, consider implementing a voluntary time-off policy. This allows employees to take unpaid leave during slow periods without the risk of losing their jobs. Admittedly, this can be challenging for smaller operations.

 

Whatever measures you include, balancing organizational needs with employee well-being is critical to fostering a positive work environment as well as instituting an attendance policy built on fairness. Once it’s in place, you next need to effectively share your new attendance policy with your employees.

Best practices for communicating attendance policies to your team

A strong attendance policy means nothing if it’s not clearly communicated. Explaining the employee attendance policy, including attendance requirements, is essential for enhancing understanding and reducing misconceptions.

 

So that employees are aware of and understand your new policy, consider taking the following actions:

  • Conduct staff meetings and training sessions
  • Create clear and concise documentation (pamphlets, handbooks, posters, etc.)
  • Use multiple communication channels to disseminate information. For example, once a quarter send a broadcast email to remind everyone to review it (and ask questions if any come up)
  • Solicit feedback to identify any issues

 

It’s necessary to clarify policies and frequently repeat them so you know employees are aware of expectations and the consequences of violating them. What do you do when there are violations?

Addressing policy violations and corrective actions

Allowing poor attendance or unauthorized absences to go unchecked affects company culture and productivity.

 

While a policy should make room for the occasional unplanned or unscheduled absence, it must set clear expectations regarding corrective actions for repeated policy violations.

 

Establish clear definitions for chronic absenteeism and set thresholds for when disciplinary actions are necessary. The policy should outline the steps of the disciplinary process. For example:

  1. Allow opportunities for employees to explain unexpected absences.
  2. Encourage supportive communication between managers and employees.
  3. Remind the employee of attendance expectations.
  4. Give a formal verbal warning for continued absences.
  5. Provide a written warning if the behavior persists.
  6. If necessary, administer a final warning.
  7. Take disciplinary action (unpaid suspension, termination, etc.).

 

Ensure that all disciplinary measures align with legal guidelines.

When and how to review and revise your attendance policy

Most businesses provide employees with a regular performance review to help them understand areas for improvement and workplace expectations. Similarly, a regular review of your attendance policy helps you identify areas for improvement. A subpar policy may lead to productivity losses or a drop in worker morale.

 

Issues may arise if an employer relies too heavily on an employee attendance policy template. Templates are excellent tools, but your business’s individual goals, operations, and objectives should always influence policy decisions.

 

As a small business owner, it’s important to review and revise your attendance policy whenever significant changes occur, whether legal or operational. It may be beneficial to review the policy and its effectiveness at the end of every year.

Easy for everyone

“The value of the product and ease of use makes it a no-brainer for small business. OnPay offers a lot of HR info and services, they do the tax filings, make adding employees and benefits simple and have created a no stress environment in doing payroll each week. It takes five minutes to run payroll, reports are easily accessed, the process is simple and can have my office staff run payroll without wondering if it’s done right. It is that simple to use!”


— Sarah, Groove U

Balancing business needs with employee rights and well-being

An effective attendance policy balances business needs with employee rights and well-being. Part of maintaining operational efficiency is to look out for the health and personal obligations of employees. Remember that workers are people, with lives and personalities that can influence their talent and contributions to your organization.

 

Develop a policy that fosters trust and work-life balance. Open a dialog to discuss attendance-related concerns without fear of reprisal. Through fairness and support, show your workforce that you appreciate them.

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Having an attendance policy puts you and your team on the same page

Though not the end-all be-all for keeping your company moving forward, an attendance policy sets expectations and keeps everyone on your team aware of their obligations. While a template can be useful to build the foundation of your policy, it makes sense to put your own stamp on it. An attendance policy should be tailored to the needs of your business and workforce. If you offer flextime or have individuals working remotely, your document is bound to look different than a firm that physically needs people in a workspace.

 

OnPay is an HR and payroll software with useful tools for policy creation. If you have any questions or need more information, our team is here to help!

Take a tour to see how easy payroll can be.

Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.

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