Why is employee able to apply for permission more than the configured maximum limit?

The Regularization & Permission feature helps an employee to apply for permission to step out in advance such as visiting a customer site, working from home, or visiting a bank for some time. 

As an admin, you can customize the permission limit for the permission types while setting up the permission workflows. 
Permission limit can be defined as the minimum and maximum time slabs set for an employee. The admin can set a minimum and maximum time limit that an employee can avail for each permission type. The maximum limit period is further classified as daily, weekly, and monthly. 

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