Create Time off policies

Modified on Tue, 09 Aug 2022 at 03:06 PM

Once you have learned to create your time off types, it's time to create your time off policies. Remember that the policies are the rules under which each time-off type operates. They specify the cycle, allowance type, and availability, plus other advanced options.


Each type of absence requires at least one policy to be effective. Multiple policies can be created per time off type. However, you will assign only one time off policy per time off type to your employees.



TABLE OF CONTENTS


Note: Check out this video on setting up time off types and policies for a more detailed explanation and visualisation! 




Add time off policies


To add a new policy, you need to go to the type off type and click on the icon (+) ADD NEW POLICY.



The next step is to define the Policy type. The following policy types are available: 

  • Day-based: Allows employees to take time offs in terms of days
  • Hour-based: Allows employees to take time offs in terms of hours and minutes

Day-based policy


Name: First define the title of the policy (example: absence type “special leave” - directive “move”).


Annual cycle: Now, choose the annual cycle. Usually, this will be January 1st and is relevant for all policies with a certain number of days (e.g. vacation). However, depending on your country's jurisdiction, it can also be the start date of an employee. To learn more, visit this article.


Allowance type:



  • Earned allowance type: adjusts the allowance given to an employee based on how many days a week they work (their work schedule). You can select if the employees receive:
    • The total adjusted allowance at once - Given in advance
    • A portion of the allowance each month (accrued) - Given as days are earned



  • Unlimited is mostly chosen for sick leave or home office, as it means that the employee will get unlimited days.


  • Annual grant type gives the total allowance to an employee at once without taking into consideration the employees' work schedule. This is especially useful for time off types such as moving to a new house or Marriage.



Annual allowance:


If you set a policy that is not unlimited, you can now enter the Annual allowance, in other words, the number of days the employee is allowed to be off per year. 


Advanced options:


Now you will see a set of advanced options. The availability of each setting depend on the policy type and the allowance type you have chosen. Here, we show you all the possible options for Day-based policy types:



  • Ignore holidays and non-working days: If this option is enabled, holidays and non-working days (such as weekends) will be deducted from the balance. For holidays, this option generally remains inactive.


  • Carry over to next year: Enable this option when employees can request the remaining vacation days from this year, in the next. Select until when they can request their carry over days in the next year and the maximum number of days they can take.


  • Half days: Enable this option if employees can request half days (morning or afternoon)


  • Rounding up/Rounding down:

    • Rounding up  - rounds up the balance when new accrual is given to always have whole numbers 

    • Rounding down - rounds down the balance when new accrual is given to always have whole numbers


  • Require approval: Enable this option if requests require approval. By default, managers and admins will be able to approve time off requests.


  • Allow negative balance in current cycle: Enable this option if you allow employees to take time off even when their balance is over.


  • Show policy details in employee time off cards: choose if you want your employees to see the details of each time off when you assigned to them. Keep in mind that the details show exactly the way these policies are configured, and they will look something like this:



  • Freeze time off requests during probation period: When this feature is enabled, your employees cannot request time off during their probation period. The feature is dependent on the probation period date in the employee personal profile. However, they can see their time off allowance, and can request time off as soon as the probation period is over.




Hour-based policy


Name: First define the title of the policy (example: absence type “special leave” - directive “move”).


Annual cycle:  Now, choose the annual cycle. Usually, this will be January 1st and is relevant for all policies with a certain number of days (e.g. vacation). However, depending on your country's jurisdiction, it can also be the start date of an employee. To learn more, visit this article.


Allowance type:

  • Unpaid: Unpaid requests will not be considered as tracked hours. Therefore, it will be ignored in the overtime count. 
  • Paid: Paid requests will be counted as tracked hours and used towards overtime calculation if applicable
    • Number of paid hours: Enter the number of paid hours that are available for this time off policy


:information_source:Note: Hourly time offs (paid/unpaid) don’t affect the expected hours. Once the hourly time off is requested, a “read-only” shift is created in the attendance tracking page just to keep track of this time off request.




Advanced options:


Finally, the advanced options for the hour-based policies will include:



  • Require approval: Enable this option if requests require approval. By default, managers and admins will be able to approve time off requests.


  • Allow negative balance in current cycle: Enable this option if you allow employees to take time off even when their balance is over.


  • Show policy details in employee time off cards: choose if you want your employees to see the details of each time off when you assigned to them.

Time off policy with cycle depending on employee start date


In most of the cases, time off cycles might start on the first day of the month. However, there is also the option to base the time off cycle on the employee start data. This means that the time off cycle starts according to the employee start data and corresponding anniversary. When this time off cycle is selected, each employee has their own time off cycle per policy. 



When selecting the "Employee Start Date" as an option, your only possibility is to choose "Annual grant", as the annual allowance.


In Mexico, for example, the right to paid holiday leave is generated once the first year of work has been completed. Therefore, the Annual allowance has to be 0.


After the first year of work, employees get 6 days of vacation. Paid vacation progressively increases every year employees work. For example, after two years, the employee will get 2 extra vacation days.


  • To give extra time off allowance based on the years worked in the company, toggle the switch on.



  • Then, click on (+) ADD EXTRA ALLOWANCE RULE.


  • Add the first allowance rule. In this case:
    • Time worked (years): 1
    • Extra allowance days: 6


  • Proceed to add all the consecutive time off allowance that your employees will have per year worked in the company within this policy. In the end, your interface will look something like this:



Advanced options:


Finally, the Advanced options will look very similar to the ones for day-based time off policies. The only difference is that you can choose how many days employees will be able to carry over after their personalized cycle has finished.




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