What is LOP Reversal?
LOP (Loss of Pay) Reversal refers to the process where an employee's attendance is marked as LOP due to an error, such as a manual or technical issue, even though the employee has actually worked that day. In such cases, the employee’s salary is initially deducted for that day. However, when the issue is identified and corrected, the employee’s salary is reimbursed or reversed to ensure they are paid for the day they worked. This process is referred to as LOP Reversal.
Steps in LOP Reversal:
Identification of Error: The first step is to recognize the discrepancy where an employee’s attendance was not marked correctly.
LOP Deduction: The system initially marks the day as LOP, resulting in a salary deduction.
Reversal Process: Once the issue is identified, a request is made to reverse the LOP deduction, and the salary for the day worked is reinstated.
LOP Reversal Report: A report is generated in the system detailing the employees whose LOP deductions have been reversed and the corresponding salary adjustments.
Salary Adjustment: The employee's pay is adjusted, ensuring they receive the correct amount for the day.
This process ensures that employees are not penalized for technical or human errors in attendance marking and maintains accurate payroll records.