Published On: 18/08/2025By

How Geofencing in Pandahrms Solves Employee Attendance Challenges

In Malaysia, accurate attendance tracking is not just a formality — it’s essential for payroll accuracy and compliance. If an employee takes unpaid leave, their salary for the month needs to be adjusted according to the number of days they were absent. Any errors in recording attendance can lead to payroll disputes, compliance risks, and unnecessary tension between employer and staff.

That’s why companies need an accurate, efficient, and secure attendance system. Recognising this need, Pandahrms offers a Smart Attendance feature that lets employees clock in by snapping a selfie along with a background photo of their workplace — making attendance recording simple, paperless, and verifiable.

To strengthen accuracy, our Smart Attendance feature is equipped with geofencing technology that prevents location fraud and ensures attendance records remain truly reliable.

What is Geofencing?

Geofencing is a location-based technology that uses GPS, Wi-Fi, or mobile data to create a virtual boundary around a specific area. When a device enters or leaves this defined area, the system can trigger specific actions — such as allowing or preventing clock-ins.

In simple terms, it works like this:

  • You set a location boundary (for example, your office perimeter).

  • If an employee tries to clock in inside that boundary, the system allows it.

  • If they’re outside the boundary, the system blocks the clock-in and prompts them to move within the allowed area.

Geofencing is widely used in apps like Setel (fuel payments only within petrol stations) and in marketing campaigns that send notifications when customers enter specific zones. But in HR and payroll management, it’s a game changer for attendance accuracy.

Why Attendance Fraud Happens

Without geofencing, even selfie-based attendance systems can be manipulated. For example:

  • Employees clock in from home or a café near the office.

  • “Buddy punching” — someone else records attendance on their behalf.

  • Clock-ins happen far from the workplace, but still get marked as “present”.

For employers, this means payroll errors, reduced productivity, and disputes over actual working hours.

How Pandahrms Geofencing Smart Attendance Works

With Pandahrms’ Smart Attendance with Geofencing:

  • Employers can set a custom clock-in radius (e.g., 10–50 metres from the office).

  • Employees can only clock in within this zone — no exceptions.

  • Each clock-in record includes:

    • Date and time

    • Exact GPS location

    • Front photo (employee selfie)

    • Back photo (workplace background for verification)

If an employee tries to clock in outside the geofenced area, the system will block the action and prompt them to move closer to the allowed location.

Benefits for Employers

  1. No more attendance manipulation – Geofencing ensures clock-ins happen only where they should.

  2. Accurate payroll calculations – Automated attendance data integrates directly into Pandahrms payroll, reducing errors.

  3. Better compliance with Malaysian labour law – Accurate working hour records help employers comply with the Employment Act 1955.

  4. Reduced disputes – Transparent and verifiable attendance logs build trust with employees.

  5. Centralised HR management – Attendance, payroll, leave, claims, and KPIs — all in one platform.

Pandahrms: More Than Just Attendance Tracking

While our Geofencing Smart Attendance feature solves location fraud, Pandahrms also offers:

  • Payroll automation – Automatically syncs attendance, leave deductions, and overtime pay.

  • Leave and claims management – Fully digital approval process.

  • KPI and performance tracking – Manage employee targets and reviews in one place.

  • Employee self-service portal – Empower staff to view payslips, apply leave, and check attendance anytime.

Stay Compliant, Stay Efficient

The Malaysian Employment Act 1955 requires accurate records of working hours, rest days, and overtime. With Pandahrms Geofencing Smart Attendance, you ensure:

  • Compliance with legal requirements

  • Hassle-free payroll preparation

  • Transparent and tamper-proof attendance records