Leave Types
Leave types define the categories of time off available to employees. This guide covers default leave types, creating custom types, and configuring leave policies.
Leave Type Overview
Navigate to Leave Types (or Settings > Leave Types) to manage your organization's leave categories.
Why Leave Types Matter
- Tracking: Categorize and track different absences
- Balances: Manage allocation and accrual
- Policies: Enforce rules per leave category
- Reporting: Analyze leave patterns by type
Default Leave Types
Most organizations include these standard leave types:
| Leave Type | Typical Days | Paid | Description |
|---|---|---|---|
| Annual Leave | 15-20 | Yes | Vacation/personal time |
| Sick Leave | 10-15 | Yes | Illness or medical appointments |
| Casual Leave | 5-10 | Yes | Short notice personal leave |
| Maternity Leave | 12-26 weeks | Yes | Childbirth and recovery |
| Paternity Leave | 1-4 weeks | Yes | New father leave |
| Bereavement Leave | 3-5 | Yes | Family death |
| Unpaid Leave | As needed | No | Leave without pay |
| Compensatory Off | Earned | Yes | Time off for extra work |
Creating Leave Types
Add a New Leave Type
- Navigate to Leave Types > Add New
- Configure the leave type settings
- Click Save
Basic Configuration
| Field | Description | Required |
|---|---|---|
| Leave Type Name | Name displayed to employees | Yes |
| Leave Code | Short identifier (e.g., AL, SL) | No |
| Color | Visual identifier for calendars | No |
| Description | Explanation of the leave type | No |
| Status | Active or Inactive | Yes |
Leave Type Settings
Payment Settings
| Setting | Options | Description |
|---|---|---|
| Paid Leave | Yes/No | Whether leave is paid |
| Deduction Rate | Percentage | Pay deduction if partially paid |
Allocation Settings
| Setting | Description |
|---|---|
| Annual Allowance | Total days available per year |
| Allocation Type | Fixed, Accrual, or Unlimited |
| Accrual Rate | Days earned per month (if accrual) |
| Pro-rata for New Joiners | Adjust allocation based on joining date |
Usage Rules
| Setting | Description |
|---|---|
| Minimum Days | Smallest leave request allowed |
| Maximum Days | Largest single request allowed |
| Advance Notice | Days in advance required |
| Max Consecutive Days | Limit on continuous leave |
Example Configuration: Annual Leave
Leave Type: Annual Leave
Code: AL
Paid: Yes
Annual Allowance: 20 days
Allocation Type: Fixed
Pro-rata: Yes
Carryover: Up to 5 days
Advance Notice: 7 days
Minimum Days: 0.5
Maximum Consecutive: 10 days
Leave Carryover
Carryover Rules
Configure how unused leave is handled at year end:
| Setting | Description |
|---|---|
| Enable Carryover | Allow unused days to roll over |
| Maximum Carryover | Limit on days that can carry |
| Carryover Validity | How long carried days are valid |
| Encashment | Option to pay out instead |
Carryover Examples
| Policy | Configuration |
|---|---|
| Use it or lose it | Carryover: Disabled |
| Limited carryover | Max Carryover: 5 days, Valid: 3 months |
| Full carryover | No limit on carryover days |
| Encashment option | Pay out excess days |
Year-End Processing
At the end of each leave year:
- System calculates unused balances
- Applies carryover rules
- Creates carryover balance entries
- Resets annual allocations
- Notifies employees of new balances
Leave Allocation Rules
Fixed Allocation
All employees receive the same allowance:
- Best for: Simple, uniform policies
- Example: Everyone gets 20 annual leave days
Tiered Allocation
Allocation varies by criteria:
| Criteria | Example |
|---|---|
| Tenure | 15 days (0-2 years), 20 days (3-5 years), 25 days (5+ years) |
| Level | 15 days (staff), 20 days (managers), 25 days (executives) |
| Department | Varies by department policy |
Accrual-Based
Leave is earned over time:
- Monthly Accrual: Earn days each month
- Example: 1.67 days/month = 20 days/year
- Pro-rata: Automatically handles partial years
Unlimited Leave
No fixed limit on leave:
- Trust-based: Employees take what they need
- Tracking: Still track for planning purposes
- Approval: Manager approval required
Leave Type Categories
Group Leave Types
Organize leave types into categories:
| Category | Leave Types |
|---|---|
| Vacation | Annual Leave, Personal Day |
| Medical | Sick Leave, Medical Leave |
| Family | Maternity, Paternity, Bereavement |
| Other | Compensatory Off, Study Leave |
Special Leave Types
Compensatory Off (Comp Off)
For employees working extra hours or holidays:
- Earned: By working overtime/holidays
- Validity: Often expires within 1-3 months
- Tracking: Requires overtime approval first
Loss of Pay (LOP)
Unpaid leave when balance is exhausted:
- Paid: No
- Allocation: Unlimited (no balance)
- Impact: Salary deduction
- Usage: Automatic when other leave exhausted
Work From Home (WFH)
If tracked as a leave type:
- Paid: Yes
- Purpose: Remote work tracking
- Approval: May require manager approval
Leave Visibility and Restrictions
Visibility Settings
| Setting | Description |
|---|---|
| Show to Employees | Display in self-service portal |
| Show Balance | Display remaining balance |
| Show in Reports | Include in leave reports |
Restriction Options
| Restriction | Description |
|---|---|
| Gender | Maternity (Female), Paternity (Male) |
| Employment Type | Only for full-time employees |
| Tenure | Available after 3 months |
| Department | Specific departments only |
Example: Maternity Leave Restrictions
Leave Type: Maternity Leave
Applicable To: Female employees
Minimum Tenure: 80 days of service
Maximum Days: 182 days (26 weeks)
Documentation: Medical certificate required
Leave Approval Workflow
Default Workflow
- Employee submits leave request
- Request goes to reporting manager
- Manager approves or rejects
- Employee is notified
- Balance is updated
Multi-Level Approval
For longer leave periods:
- First Level: Reporting manager (up to 3 days)
- Second Level: Department head (up to 10 days)
- Third Level: HR Director (beyond 10 days)
Auto-Approval Rules
Configure automatic approval:
- Sick Leave: Auto-approve for 1 day with medical note
- Half Day: Auto-approve if balance available
- Emergency: Fast-track approval process
Leave Type Reports
Available Reports
- Leave Balance Report: Current balances by type
- Leave Utilization: Usage patterns by type
- Carryover Report: Year-end carryover summary
- Allocation Report: Annual allocations by type
Analytics
Track leave patterns:
- Most used leave types
- Average leave duration by type
- Seasonal trends
- Department-wise usage
Best Practices
Policy Design
- Align with local labor laws
- Be competitive with industry standards
- Consider employee well-being
- Document policies clearly
Configuration Tips
- Start with common leave types
- Configure carryover rules carefully
- Test allocation calculations
- Review and update annually
Communication
- Publish leave policy documentation
- Notify employees of balance changes
- Remind about carryover deadlines
- Provide self-service access to balances
Next: Learn about Expense Types to configure expense management categories.