Create Time off policies

Modified on Wed, 10 Jan 2024 at 11:06 AM

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.


Add time off policies

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

Then, you can set up all the rules for your new policy, starting with the allowance rules.


Here, you can select the time off allowance employees are entitled to with this policy and when they should receive this allowance. It is the first and crucial step to define your time off policy. 

Policy name: Start the setup of your new policy with giving it a name. Remember: the clearer the name, the easier it is for you later to differentiate the policy from other policies and assign your employees to it. In our example we will be setting up a policy for a vacation of 24 days.

Allowance is set in: Here, you can choose whether your employees will receive their time off within a days or hour format. In this example, because we are creating a time off policy for holidays, we will choose days

Allowance type: The allowance type defines whether your employee gets a fixed allowance per cycle or an unlimited allowance per cycle. 

  • Unlimited is mostly chosen for sick leave, as it means that the employee will have no limit for days taken off. 
  • The Fixed allowance lets your employee only take off as many days off as you configure within the Base Allowance

If you choose Unlimited, the bar on the left will be shorter and allow you to configure fewer rules.

Annual cycle will start on the: Here, you can decide on the point of time when your policy cycle kicks off. 

  • Employee start date: When you choose this option, the cycle will kick off on the day that your employee starts working at your company.
  • Disabled cycle: Choose this option to create a policy without a cycle, meaning the time off days will not expire after a certain time period. 
  • Specific date: This is the most common option to use. Usually, you would choose January 1st, so that your employees receive their days as soon as the new year begins. 

Base Allowance: Enter the number of days your employees will receive in a cycle.

Use calendar days: Enable calendar days to deduct non-working days, such as weekends or public holidays, from someones' balance when they make a request. 

This option will not be available for hour based policies.

How is the Allowance accrued?: Here, you can choose how your employees will receive their time off. 

  • Accrual is given on a monthly basis
    • End of accrual period (given once worked): With this option, your employees receive the calculated grant allowance on the first day of the next accrual period.
    • Start of accrual period (given in advance): When you choose this option, your employees receive the calculated grant allowance first of the accrual period.
  • Allowance is given at once, at the beginning of the cycle 

When you are done setting everything up, click on NEXT

Extra Allowance

In the next step, you can configure the extra day rules. You can add extra allowance rules to automatically increase the policy's base allowance based on how long an employee has been in the company. If you do not wish to create any extra allowance rules, you can skip this step

You can add an extra allowance rule by clicking on (+) ADD EXTRA ALLOWANCE RULE

Time worked (years): Add here the time required to work before receiving the additional allowance. For example, if you choose to add 1 year, your employee will receive the extra allowance you have chosen with every year they have worked for your company. 

Extra allowance days: Here, you can choose how many allowance days will be added to your employee's existing base allowance. If you choose one extra allowance day here, your employee will receive one extra time off day every year they are employed at your company. 

When you are done, click on ADD. You can add as many extra allowance rules as you want. Lastly, click on NEXT


Next, you can choose whether the policy base allowance should be prorated (adjusted) for new employees, part-time employees and employees with a contract end date. For example, let's say you have an employee that starts on July 1st. Now, you can choose:

  • You give your new employee half of the yearly time off allowance, and they receive the full amount on the cycle start date you have chosen, OR 
  • They receive the full cycle amount all at once and receive new days every year on their start date. 

New employees in this cycle:

  • Don't prorate, give the full allowance: The employee receives the full amount. 
  • Prorate based on the employees' start date: The employee receives their allowance prorated based on how many days are remaining in the current cycle. 

Employees with a contract end date: 

  • Don't prorate, give the full allowanceThe employee receives the full amount.
  • Prorate based on the employees' contract end date: The employee receives their allowance pro rata based on the number of calendar days they work in the cycle. This is based on the end date stored in the employee's personal profile.

Employees with a part-time work schedule: 

  • Don't prorate, give the full allowance: The employee receives the full amount.
  • Prorate based on the employees' work schedule: The employee receives the amount they are entitled to based on their work schedule total days, using the formula: 

When you are done configuring everything, click on NEXT


Here, you can select how the employee's time off balance should be managed for the policy you are currently creating.

Allow negative balance in current cycle: Enable this option if you allow employees to take time off even when their balance is over. You can choose whether your employees are allowed unlimited negative days or you can set a maximum number of days they can go over their balance.

Allow unused allowance to be carried over to the next cycle: 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. You can always select the options to carry over the remaining days in the cycle, and that they don't expire. 

Round the current balance to full days?: Enable this option to choose: 

  • Round down to the previous interval: rounds down the balance when new accrual is given to always have whole numbers 

  • Round up to the next interval: rounds up the balance when new accrual is given to always have whole numbers

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 it to them. Keep in mind that the details show exactly the way these policies are configured, and they will look something like this:

After everything is set up, click NEXT


As the last step, you can select how the employees' time off requests should be managed for the policy you are currently creating.

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

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.

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

Lastly, click on SAVE. You have now successfully created your first time off policy! You can create as many policies as you like. Learn about how to assign policies to your employees in this article. 

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