Employees → Leaves → Leave Types

• To configure the leave policy for different leave types, click the Add button. 

• A pop-up window will open, where you need to fill in all the required fields as per your organization's policy and submit. 

• The leave balance will be generated for all employees or only for applicable employees, depending on the business rules.
  

Fig: Add Leave Types

Leave Types

It can be categorized into several types based on whether they are compensated or uncompensated, and whether they are considered as time off from work.

• Paid leave refers to time off from work during which an employee continues to receive their regular salary. 
  

• Example- Casual Leave, Sick Leave, Earned Leave etc

• Unpaid leave refers to time off from work where the employee does not receive any salary or compensation.
  

• Example- Loss of Pay or Leave Without Pay

• On duty refers to time when an employee is still considered to be at work, but is not performing their regular job functions. 
  

• Example- Business Travel, Training or Conference, Official Assignments etc

It refers to the settings and rules applied to manage and control various types of leave within an organization. This includes defining how different types of leave are handled based on service duration, specific scenarios like maternity leave, and other parameters.

• It refers to leave entitlements that are dependent on the length of an employee's service with the organization. This type of configuration ensures that leave benefits are proportional to the employee’s tenure.
  

• Employees earn leave days based on their years of service. For instance, an employee with less than 1 year might accrue 10 days of leave, while those with more than 5 years might accrue 20 days. 

• The configuration of maternity leave policies involves setting slabs or tiers that determine the duration and conditions of the leave.
  

• 180 days of leave is applicable for the first two children.

Leave Closure Based On

Leave closure can be managed based on either the selected annum (calendar year) or the Date of Joining (DOJ).

Leave balances are reset or updated at the end of the calendar year or selected closure month.

Leave balances and entitlements are reviewed and updated annually on the employee’s Date of Joining. For instance, if an employee joined on June 15, their leave balances and accruals are reviewed annually on June 15.

You can configure the Replenishment Limit to automatically replenish leave balance once an employee exhausts their entitlement for a particular leave type.If the replenishment limit is set to zero, the leave balance will be granted only once during the employee's entire service period.

For example, if an organization limits Maternity Leave to 2 children and sets the Replenishment Limit as 1, then the employee’s 90-day leave entitlement will be replenished once, totaling 180 days (90 + 90).

Unlimited Replenishment on ApprovalIt allows leave balances to be replenished without a fixed limit.When an employee exhausts their leave balance. The leave balance is automatically credited based on the predefined leave policy.This feature is useful for leave types such as Compassionate Leave, Maternity Leave, or Special Leave, where replenishment may be required multiple times.

Coverage

It's important to define how leave policies apply across different categories such as organizational levels, employee grades, and custom groups. 

Leave policies that apply uniformly across the entire organization, regardless of employee grade or department.

Grade

Leave policies that vary based on employee grades or levels within the organization. Different grades may have different entitlements and accrual rates.

Leave policies designed for specific groups within the organization, such as departments, teams, or special project groups. Custom groups allow for tailored leave policies based on unique needs.

Leave eligibility in days refers to the number of leave days an employee is entitled to based on various criteria such as tenure, grade, role, or specific policies.

Is the specific leave type applicable for employees who are serving their notice period?

During Probation

Define whether employees are eligible for leave while they are still on probation. Some organizations provide limited leave during this period.

Full leave entitlements typically apply after the successful completion of the probationary period.

Leave entitlements and accruals are often calculated from the Date of Joining. For new employees, leave may be granted on a pro-rata basis.

Establish a custom rule for leave eligibility. For example, Casual Leave becomes applicable 30 days after the Date of Joining, meaning it is not available during the probation period or immediately upon joining.

Enabling proration in leave types means adjusting the leave entitlements and accruals proportionally based on the employee's length of service or the specific period of employment.This ensures that leave is allocated fairly for employees who join or leave partway through a leave cycle or year.

Prorated Threshold Limit

It refers to the specific point in time used to calculate the prorated leave entitlements based on an employee's joining or leaving date.

• Proration is calculated based on the exact day the employee joins or leaves the organization, regardless of the specific day of the month.
  

• This method allows for precise proration, as leave entitlements are adjusted according to the exact number of days worked within the leave cycle.

If the threshold date is set to the 16th of the month, then employees who join after this date will not be eligible for the leave balance for that month. Consequently, they will not be entitled to that specific leave type for the month in which they joined.

It refers to the ability of employees to transfer unused leave from one period (e.g., one year) to the next. This feature allows employees to retain and use leave balances that were not utilized within the current leave cycle.

• The maximum amount of unused leave that can be carried over to the next period.

• Example- Employees can carry over up to 10 days of unused annual leave to the next year.

Accumulation Limit

• Set a limit to prevent excessive accumulation of leave balances.

• Example- Unused leave will accumulate for up to 180 days; any excess leave beyond this period will be lapsed.

• Accumulation limit should be greater than or equal to the count of carry over limit and leave eligibility days.
  

Minimum and Maximum Limit

• It refers to the predefined limits on the amount of leave an employee can request for a single leave application.

• Example- The minimum limit is 0.5 days, and the maximum limit is 3 days per request.

Leave Encashment

• It refers to the process of converting unused leave days into cash compensation.

• Leave encashment will be applicable based on the leave encashment limit defined for the specific leave type within the annual leave closure policy.

• Unused leave will be encashed to the employee during the Full and Final Settlement process.

• Example: If the leave period is from January to December and the employee is entitled to 12 days of leave, but the employee resigns on July 15th and has used only 3 days of leave, the remaining unused leave (3.5 days) will be encashed.

• Any excess leave utilized beyond the entitlement will be deducted from the employee's salary during the Full and Final Settlement.

• Example: If the leave period runs from January to December and the employee is entitled to 12 days of leave but resigns on July 15th, having used 9 days of leave, the leave eligibility from January 1st to July 15th is 6.5 days. Thus, 2.5 days of leave used in excess will be deducted from the employee’s salary.

• It refers to how often an employee can request or accumulate a specific type of leave within a given period. It determines the intervals at which leave can be taken or accrued, based on organizational policies and leave entitlements.

• Example- If the frequency for Casual Leave is set to 2, an employee who applies for leave on August 10th will not be able to apply for additional Casual Leave for the following two days.

It refers to the requirement for employees to provide supporting documentation when applying for specific types of leave.

If the threshold limit for Sick Leave is set to 3 days, the system will require employees to upload a medical certificate if they request 3 or more consecutive days of leave.

Leave Period

It refers to the intervals at which leave entitlements are accrued and credited to the employees.

• Monthly- Leave is accrued on a monthly basis

• Quarterly- Leave is accrued every three months.

• Half-Yearly- Leave is accrued every six months

• Annually - Leave is accrued on an annual basis.

From the Beginning of the month

• The distribution of leave balance depends on the leave period. The leave balance will be credited at the start of the leave period.

• For example, if the total leave eligibility is 20 days, the application will automatically accrue leave at a rate of 1.66 days per month. The decimal values will be rounded off in the forecasting leave periods, ensuring that the leave balance is fully utilized by the employees.

• This option will appear in the dropdown if either the Carry Over or Leave Encashment flag is enabled. This is due to the leave balance being credited at the end of the month, which may result in unutilized leave for the last month of the leave closure year.

• If Carry Over is applicable for a particular leave type, the leave balance will be credited at the end of the leave period. Employees will then be able to use any unused leave from the previous year at the start of the new leave period.

Leave accrual is determined by a customized configuration set by the organization.An organization might configure leave accrual to occur monthly, quarterly,half-yearly or annually, based on their specific requirements.

Accrual Restriction for a period

• If the flag is enabled, the leave period configuration will apply for a specific duration.

• Example: If the accrual restriction is set to 365 days and the leave period is configured as Monthly, employees who have not completed 365 days from their date of joining will be subject to the monthly restriction. Those who have completed 365 days will not be subject to this leave period restriction.

• By enabling this flag, unused leave can be carried over to subsequent leave periods.

• Example: If the leave is configured with a Monthly leave period of 1 day per month and the leave year runs from January to December, an employee who does not use any leave in January will have the unused leave carried over to February. Consequently, the employee will be eligible for 2 days of leave in February.

• If the flag is disabled, unused leave will not be carried over to the next period and will be lapsed at the end of the current leave period.

• It refers to the requirement for employees to give advance notice before taking a specific type of leave.

• Example: If the advance notification period is set to 3 days for a particular leave type and an employee wishes to take leave on August 17th, they must submit their leave request on or before August 13th. Otherwise, the system will not permit them to apply for the leave.

Leave Calculation Days

It refers to the criteria used to determine how leave entitlements and usage are calculated.

• Leave is calculated based on the actual working days in a business week, excluding weekends and public holidays.

• Example- If an employee takes leave from Saturday to Monday, and Sunday is configured as week off, then the leave is calculated as 2 business working days instead of 3 days

All Days of the Month

• Leave is calculated based on all calendar days in the month, including weekends and public holidays.

• Example-If an employee takes leave from Saturday to Monday, and the leave is calculated based on all days of the month, then the leave is counted as 3 days, including weekend.

Enabling this flag will display the leave balance on the employee’s dashboard, in the leave application form when requesting leave, and in the Leave History table.

Enabling this flag will prevent employees from applying for a specific leave type directly. The leave type will not be visible on the dashboard and in the leave application form. However, admins will be able to view and apply for this leave type on behalf of the employees.

Enabling parental leave will allow employees to use their parental leave balance before accessing their child leave balance.

• To use personal choice leave, the user must configure the holiday list with the holiday type set as personal choice. Only those dates marked as personal choice holidays will be available in the leave application form's date picker for employees to select.

• Example: If 7 holidays are configured as personal choice, an employee can choose any 2 of these restricted holidays to be used as personal choice leave.

• Enabling this flag will allow the user to configure the Half Pay leave policy.

• It allows employees to take leave at half their regular pay rate. This type of leave is typically used when employees have exhausted their full-pay leave entitlements but need additional time off.

• Leave taken at half pay, supported by medical documentation.

• The leave balance is deducted based on a specified ratio, often more than the actual leave taken.

• Example: If an employee takes 2 days of Half Pay Leave with medical documentation, 4 days may be deducted from the leave balance.

• Leave taken at half pay without providing medical documentation.

• The leave balance is deducted based on the actual leave taken, and salary is adjusted accordingly.

• Example: If an employee takes 1 day of Half Pay Leave without medical documentation, 1 day will be deducted from the leave balance, and there will be a salary deduction for 0.5 day.

1. Enabling this flag the Employees receive 50% of their regular pay during half pay leave.