The first step in the Leave Module is to create all the applicable leave types and configure them as per your company policy.
You can Add/Configure/Edit Leave Types based on different criteria.
Go to Settings >> Click “Leaves”.
Click on the Add Leave button to add new leave types OR to edit existing leave types click on the View/Edit icon.
Enter the leave name in the NAME field and the Abbreviation, on adding new leave types.
The following details like leave credit, encashment rules, and applicability will be displayed.
In the Credit tab
Leave Credit Frequency:
Select leave credit frequency i.e., Monthly/Quarterly/Half Yearly/Yearly. This option would credit leaves balance based on the calendar days.
For Example: If you select the monthly option the leave credit will happen every month. If you select quarterly the leave credit will happen once every three months.
Leave Credit on - You have three options to choose when your leave should be credited.
- First Day- the leave will be credited on the first day of the month.
- Last Day- the leave will be credited on the last day of the month.
- On Pay Block - the leave will be credited once the payroll is locked.
To know more about the Lock Payroll process, please click here.
Credit is attendance dependent: If you choose “Yes” the leaves will be credited based on the attendance i.e., on a pro-rata basis.
Proration is applicable for new joiners: if you choose “Yes”, Leave credits will be prorated based on the Date of Joining.
Credit Type: Select Flat OR Slab.
In case of credit type FLAT, Enter the number of days of leaves to be credited.
You can use a slab to create a different number of days to be credited at each completed period/Quarterly/Half Yearly/Yearly.
New joinee cut-off rule: Enabling this option if you want to create a separate rule for crediting the leaves in the month of joining for new hires.
Encashment:
Can carry forward? Select “Yes” if the leave must be carried forward to the next Leave year.
Max Carry forward at year-end Specify the maximum number of days that can be carried forward to the next Leave year.
Is En-cashable? Select “Yes” if leave balances can be encashed.
Max Days En-cashable: Enter the maximum days of leave that can be encashed, either on separation or while in service, if applicable.
En-cashable Formula: The formula created under the Leave Encashment component will be shown here.
Please note, that before creating the Encashment setting, you need to create the Leave Encashment component and define the formula.
Rules:
Min. Service Period before leave can be applied:
If you want the employees to apply for leave only after completing a fixed set of days, then you can enter the minimum number of days. This will be considered from the employee’s date of joining. If employees can apply from day 1, you can leave this field blank.
Min/Instance: Specify the minimum number of days that can be taken per instance by employees.
Max/Instance: Specify the Maximum number of days that can be taken per instance by employees.
Leave Request Window: the number of days after which the employee will not be able to apply for leaves that have already been availed.
Max leave that can be taken: update the maximum number of days of leave that can be availed during a specific period.
Max number of instances leave can be taken update the number of times the leave can be applied in the defined period. If you update Zero, then there is no Cap on the number of times leave can be applied. Likewise, if we enter 1 and select monthly, then the employee can apply for leave only once a month.
Max. Leave balance: enter the maximum number of days of leave that an employee can have at any given point in time.
Max negative leave balance enter the maximum number of negative leave balances the employee can request the leave. This will override the “Max carry forward at year-end” rule in the Encashment Tab.
Un-availed leave will lapse If you check this box, the un-availed leaves will lapse based on the period defined for Leave Credit in the credit tab.
Notice for leave request specifies the minimum number of days' notice to be given before applying for leave.
Max Leave Balance Select from 2 options Maximum Leave Balance at year end process or Maximum leave balance at any point in time.
Sandwich Rule:
Is Leave part of weekly off:
If the weekly off is between two leave days, then the weekly off will also be considered as leave taken.
E.g. the weekly off is Saturday and Sunday and if the employee applies for leave on Friday and Monday, then even Saturday and Sunday will be considered as leave taken.
Is Leave part of Holiday:
If there are holidays in between the leave days, then the Holiday will also be considered as leave taken.
E.g. if the leave is availed on say Monday and Wednesday and if Tuesday is a Holiday, then even Tuesday will be considered as leave taken.
Is Leave part of the preceding week off.
By enabling this option, the weekly off before the leave start date will also be considered as leave taken.
E.g., If leave is applied for Monday and if Saturday and Sunday are the weekly off then both will be considered as leave taken along with Monday.
Is Leave part of preceding holiday:
If there is a holiday just before your leave start date, then the holiday will also be considered as leave taken if you select this option.
For, If leave is availed from Wednesday and Tuesday is a holiday, then Tuesday will also be considered as leave taken.
Is Leave part of succeeding week off:
If there is a weekly off immediately after the last date of the leave, then the weekly off will also be considered as leave taken.
For, if Leave ends on Friday and Saturday and Sunday are weekly off, then both days will be considered as leave taken along with Friday.
Is Leave part of succeeding holiday:
If there is a holiday just after your leave end date, then the holiday will also be considered as leave taken if you select this option.
For, If leave is availed from Wednesday and Thursday is a holiday, then Thursday will also be considered as leave taken.
Clubbing Rule:
Can't be clubbed with: Select leave types, which should not be clubbed along with the configured leave types.
For example, you cannot club both Sick Leave and Casual Leave together, i.e. avail SL on Monday and CL on Tuesday. There should be a gap of one day between both leaves.
Configure Ess Rule/Display
Display Leave Balance to Employee If you want the leave balance to be displayed in the Employee Self-Service portal, then enable this option.
Upload of attachments is mandatory in the leave claim: You need to enable this option if your company policy requires the employee to upload supporting documents while applying for leave.
Leave workflow: By default, the leave workflow is enabled, and the manager will be the approver. If you need more than 1 level of approval, you need to create the new workflow under Leaves à Manage Leave Workflow. Once you have created the new workflow, edit the leave type, and map the Newly created Leave workflow. Please refer to the manual “How to Set Leave Workflow”.
Applicability:
Here you have the option to define the applicability of the leave. Select the criteria (Type of employee, Department, Location, Cost center, etc.,) based on the drop-down provided. Once you have selected the required option, click “Add” to apply the selection.
Click “Save” to complete the new leave configuration.
Note: After creating the leave type, you will need to allocate it to employees. You can do that by navigating to Settings >> Leaves and clicking on Allocate Leaves