When you create a new contract, the Default Time Off policy settings are applied. You can track time off, review (approve/decline) requests, and decide if the time off is Paid or Unpaid.
Note that the Default Time Off policy operates on a non-accrual basis.
How do Time Off policies work?
Time off policies allow you to define different types of leave, including PTO, sick leave, bereavement leave, religious leave, and others, while also keeping track of each employee's time off usage.
There are two types of Time off Policies:
Accrual Time Off Policy
Accrual time off policies allow you to track, review, and accrue time off balances over time, which is great for managing annual leave or paid time off.
You can set parameters for when accruals begin, their frequency, carry-over rules, and establish guidelines for requests, including minimum and maximum time off periods, half-day requests, and waiting periods for new employees.
Non-Accrual Time Off Policy
Non-accrual policies allow you to track and review leaves simply, which is great for managing leaves that do not require accrual, such as sick, parental, or bereavement leaves.
How to create a Custom Time Off Policy?
To create a Time Off Policy with Accruals, follow these steps:
Navigate to Company Settings and choose the Time Off Policies tab.
Click on Add New and assign a name to the new policy (e.g., PTO UAE).
Choose the Vacation type, enter the number of days the worker is entitled to per year, and then select the working days of the week.
Offer more time off days based on worker tenure, if needed.
Define the Accruals and Carryover settings.
Set the time off request submission rules and click Save.
To create a Time Off Policy without Accruals, follow these steps:
Navigate to Company Settings and choose the Time Off Policies tab.
Click on Add New and assign a name to the new policy (e.g., Sick Leave).
Choose a non-accrual type policy and click Continue.
Choose if the number of time off days per year are limited or unlimited.
Set the time off request submission rules and click Save.
Note: The Default Time Off policy can only be set with unlimited days per year.
How to assign workers to a policy?
There are two ways to assign a worker to a policy:
Option 1: From the Policy Settings
Navigate to Company Settings and select the Time Off Policies tab.
Click on Manage Workers, then search for and add the workers you want to assign.
If it’s an accrual policy, select the accrual start date.
Click on Save.
Option 2: From the Worker Time Off Setting
Open the worker’s contract and go to the Time Off tab.
Click on Assign Policy and choose the desired policy.
If it’s an accrual policy, select the accrual start date. You will see a preview of the accruals for each period from the chosen start date.
Click on Save.
Note: Workers can only be assigned one policy per type e.g., a Vacation policy.
Except for the Other category, for which the a worker can be assigned to multiple policies.
Can I Revert to the Default Time Off Policy After Assigning a Worker to a Custom Policy?
Yes, you have full control over your policies and can revert to the previous policy anytime. To do this:
Open the worker’s contract and navigate to the Time Off tab.
Click on the 3-dot icon and select Change Policy.
In the side panel, select the Default Time Off policy.
Click on Save.
Note: Changing or unassigning a policy will not affect any time off already taken.
How to unassign a policy?
Open the worker’s contract and navigate to the Time Off tab.
Click on the 3-dot icon and select Unassign.
In the side panel, choose the new policy you want to assign.
Note:
Default policy cannot be unassigned; it can only be replaced by an Accrued policy
Accrued policies cannot be unassigned. They can only replaced by an Accrued policy or the Default policy.
Changing or unassigning a policy will not affect any time off already taken.
How to change a policy?
Open the worker’s contract and navigate to the Time Off tab.
Click on the 3-dot icon and select Change Policy.
Choose the new policy you want to assign in the side panel.
Note: Changing or unassigning a policy will not affect any time off already taken.
How to Add/Deduct Time from a Time Off Balance for a Worker?
Open the worker’s contract and navigate to the Time Off tab.
Click on the 3-dot icon and select Adjust Time.
Enter the necessary adjustments.
Click on Save.
How to View Reports on Your Team's Time Off
The reports page provides high-level analytics on time off usage and requests by status for different groups.
For more detailed reports on time off usage by status or accrued balances over a specific period, follow these steps:
Navigate to the Reports Section
Click on Generate Report.
Select either Time Off or Time Off Balance reports.
Preview and Download the report in your desired format
What Happens to Accrued Time Off When a Different Accrual Policy is Applied?
When assigning a new accrual policy, you will be prompted to select the accrual start date. Based on your selection, a simulation of the newly accrued time off will be displayed for your review before you confirm. Any time off accrued before the selected date will remain unchanged.
Example:
Sarah joined the company on 01/01/2024 and was initially assigned a policy that allows her to accrue 20 days per year with monthly accruals.
By July 1st, Sarah has accrued 10 days.
Scenario 1: If the HR manager assigns a new policy with 30 days per year with monthly accruals and selects an accrual start date of 01/01/2024:
As a result, Sarah would have an accrued balance of 15 days under the new policy as of July 1st and will continue to accrue time off every month as per the new policy settings.
Scenario 2: If the HR manager assigns a new policy with 30 days per year with monthly accruals and selects an accrual start date of 01/07/2024:
As a result, Sarah would have an accrued balance of 10 days from the previous policy, and the new policy accruals settings will apply starting July 1st.
FAQs
How are new contracts assigned time off policies?
The Default Time Off policy is assigned to all new contracts, allowing you to track and approve/decline time off requests.
When are vacation days credited—at the start or end of the accrual cycle?
Vacation days are credited at the end of the accrual cycle, with the exception of the Yearly frequency. For Yearly accruals, vacation days are credited at the start of the year.
For example, a vacation policy offering 22 days annually will credit the full 22 days to the worker’s balance at the beginning of the calendar year. During the first year of employment, the credited balance is prorated based on the start date.
Can I offer extra vacation days based on years of service?
Yes, for vacation type policies, you can add tenure rules during the Policy Details configuration step. These rules allow you to grant additional annual vacation days to workers based on their length of service.
When are vacation days carried over?
Either on the first day of the calendar year (e.g., January 1st) or 12 months after the earning start date (e.g., if it starts on August 12, 2024, carryover occurs on August 11, 2025). This is configurable per policy.
How can I ensure carried-over days are used first?
By default, carried-over time off is used before the newly accrued days.