What impact would paid absences have on the payroll department?

Give one example.

Usually, a company offers leave credits to its employees, depending on the period of services they rendered to the company. These leave credits can be converted to monetary payments or can be availed as compensatory time off, depending on the agreement of the company and its employees. In case a leave credit is granted to an employee, his/her absences will still be considered as paid. This means that such employee will still receive an equivalent payment for the day he/she is out of the office, as long as it can be covered by his/her leave credits. Thus, this will not affect the payroll for it is only as if a payment for the services already rendered in advance.

However, when the employee has no leave credits or extra work rendered, absences shall not be paid. This means that the he/she will not receive a corresponding salary on the days he/she is out of the office. In case he/she is paid, the company incurred an expense without a corresponding benefit, thus increasing their salaries expense. At the same time, it would be unfair for the other employees who covered the work of the absent employee, but were not paid a corresponding equivalent of the services they made. Thus, it is really necessary to monitor the attendance of the personnel, as well as the charging of their absences.