Prerequisites
You must have an Admin role to configure penalization rules.
An attendance policy must already exist, or you can configure these rules while creating a new attendance policy.
Employees must be assigned to the attendance policy for rules to take effect.
Step 1 - Navigate to Attendance Policies
From the left navigation bar, click on Attendance.
Select Policies from the submenu.
You will see a list of existing attendance policies.
Step 2 - Open the Attendance Policy
You can configure LOP rules either when creating a new policy or by editing an existing one.
Option A: Create a new policy
Click the + Create Policy button.
Complete Step 1 (Basic) by entering a policy name and description.
Complete Step 2 (Shifts) by defining shift timings and weekly offs. For full details, refer to How to create an attendance policy in Asanify.
Proceed to Step 3 (Advance) — this is where LOP and LOL rules are configured.
Option B: Edit an existing policy
Click on the name of the policy you want to update.
On the policy detail page, click the Edit icon (pencil) or look for the Edit Mode option near the policy name.
Scroll down to the Late Arrival Deduction Rule and Work Hour Shortage sections.
Step 3 - Configure Late Arrival Deduction Rules
In the Advance step (for new policies) or in edit mode (for existing policies), locate the section titled "Is employee penalised (LoP/LoL) for arriving late?"
You have three options:
No, employee is not penalised
Select this if late arrivals should have no financial consequence.
Yes, employee incurs Loss of Pay (LOP)
Select this to deduct salary days when an employee arrives late too many times in a month.
Enter a value in the "For every ___ day(s) late in a month" field — this is how many late days trigger a penalty.
Enter a value in the "deduct ___ day(s) of pay" field — this is how many salary days are deducted per trigger.
Example: "For every 3 days late in a month, deduct 1 day of pay" means after every 3 late arrivals, 1 day is deducted from the employee's salary.
Yes, employee incurs Loss of Leave (LOL)
Select this to deduct from an employee's leave balance instead of salary.
Set the "For every ___ days late, deduct ___ day(s) of leave" threshold.
Under "Which leave balances should be deducted, and in what priority order?", add and reorder the leave policies from which leave balance should be deducted first (e.g., Casual Leave first, then Earned Leave).
Use the drag handles to reorder the priority list.
Click + Add Another Leave Policy to add more leave types to the priority list.
Note: If LOL is selected and the employee has insufficient leave balance, the system automatically falls back to Loss of Pay (LOP) for any remaining penalty.
Step 4 - Set the Buffer Period for Late Arrival
After selecting LOP or LOL for late arrivals, a Buffer Period field appears.
Enter the number of days after the incident before the deduction is applied.
Example: A buffer of 3 days means if an employee arrives late on Day 1, the penalty will only be recorded and applied 3 days later.
A buffer of 0 means the deduction is applied with no delay.
Step 5 - Configure Work Hour Shortage Rules
Scroll to the section titled "What happens when an employee doesn't complete required work hours?"
You have three options:
No Action Taken
Select this if no penalty should be applied for work hour shortages.
Loss of Pay (LOP)
Select this to deduct salary days based on how many hours short the employee was.
Choose the tracking frequency — currently Monthly is supported, meaning shortages are evaluated at the end of each payroll month.
Define one or more slab rules. Each slab specifies a range of shortage hours and the corresponding pay deduction:
"For shortage of work hours above ___ hour(s), deduct ___ day(s) of pay" for the last slab (no upper limit).
"For shortage above ___ hour(s) and up to ___ hour(s), deduct ___ day(s) of pay" for intermediate slabs.
Click + New Rule to add additional slabs for tiered deductions.
Example configuration:
Slab 1: Shortage above 4 hours and up to 8 hours → deduct 0.5 days of pay
Slab 2: Shortage above 8 hours → deduct 1 day of pay
Loss of Leave (LOL)
Select this to deduct from leave balance for work hour shortages, using the same slab structure.
Configure slab rules (same format as LOP above but deducts leave days instead of pay days).
Set the Leave Balance Deduction Priority — add and reorder the leave policies to deduct from.
Note: Similar to late arrival LOL, if leave balance is insufficient, the system falls back to Loss of Pay for any remaining shortage penalty.
Step 6 - Set the Buffer Period for Work Hour Shortage
After selecting LOP or LOL for work hour shortage, a Buffer Period field appears.
Enter the number of days after the end of the period before the deduction is applied.
This gives time for any attendance regularizations or corrections to be processed before the penalty is finalized.
Step 7 - Save the Policy
For new policies:
After configuring the advance settings, click Next to proceed to Step 4 (Summary).
Review the summary to confirm the late arrival and work hour shortage rules are correctly listed.
Click Create to save the policy.
For existing policies:
After making changes in edit mode, click Save to save the updated policy as a new version.
Step 8 - Assign Employees to the Policy
LOP and LOL rules only apply to employees who are assigned to the policy.
From the policy detail page, click Add or Remove Employees in the Assigned Employees section.
Search for and select the employees you want to assign, then save.
Note: Employees not assigned to a policy with penalization rules will not have any LOP or LOL applied.
How LOP Deductions Are Applied During Payroll
Once rules are configured and employees are assigned:
Daily tracking: The system evaluates each employee's clock-in records against the policy rules after the buffer period ends.
Late arrival: If the threshold (e.g., 3 late days in a month) is reached, a penalty is automatically created.
Work hour shortage: At the end of the monthly period, the system checks each employee's total hours against the slab rules and applies the corresponding deduction.
Payroll deduction: When you run payroll, the accumulated LOP days are automatically reflected as a pay deduction in the payslip under the LOP Days field.
Tip: You can review pending and applied penalizations for employees before running payroll to verify accuracy.
Additional Information
Difference Between LOP and LOL
| Loss of Pay (LOP) | Loss of Leave (LOL) |
Deducts from | Salary | Leave balance |
Fallback | — | Falls back to LOP if leave balance is exhausted |
Best for | Direct salary penalty | Preserving pay while using available leave first |
Monthly vs Weekly Tracking for Work Hours
Work hour shortage tracking is currently evaluated on a Monthly basis, aligned with the company's payroll period. The system checks whether the period end boundary is reached before creating shortage violations — shortages are not evaluated mid-month.
Editing Penalization Rules
Editing a policy creates a new version. Previously applied penalties are not retroactively changed — only new violations going forward are evaluated under the updated rules.