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Create an Accrual-Based Time Off Policy

Adam
  • Updated

Before you start

Admins can create accrual-based time off policies for their employees. This is an accrual type that allocates balances over time based on the number of days or hours worked. The employee then requests time off that is deducted from this balance.

Once you publish a time off policy, it can be assigned to employees. 

Create an accrual-based time off policy

  1. Navigate to Admin > Time Off > Policies
  2. Create > New policy
  3. Name the policy
    This will only be visible to Admins. 
  4. Select a policy type
    This is what will display to employees when they request time off. 
  5. Select work hours that apply to this policy, and then accrual policy
  6. Select Next
  7. Configure your Accrual Rate for employees in hours or days 
    • First set base rate - this is calculated automatically based on the frequency and total accrual per year.
      • Accrual Frequency: Here you will determine when employees receive their accrued time off. It’s best practice to match your frequency with your company’s pay cycles.
      • Time off accrued per year: Determine how much time off employees are allocated in a year. This can be either days or hours.
  8. Determine how you want this accrual rate to be applied. You can either use one rate for everyone or add additional rates based on employee attributes.
    • If you choose “Use one rate for everyone”, select next and continue onto Advanced Settings.
    • If you choose “Add additional rates based on employee attributes”, click next and configure your additional policies. 
      • Configure Additional Policies
        • Start by selecting the fields you’ll use to define attribute rules for different rates. You can choose Tenure, Location (Coming Soon), Employment Type (Coming Soon), or Department (Coming Soon) > Next.
      • Create Rules
        • Add New Rule.
        • Define your additional policies and save. Once you have added all your additional policies, press Next.
  9. Toggle on any relevant Advanced Settings. When you’re done, press Next.
    • Annual Reset Date: Determines when accrued balances are reset. You can choose either January 1st (most common) or a custom date.
      • Carryover Limit: Defines how many hours/days an employee can carryover from one year to the next on the reset date. If this setting is NOT toggled on, they will not carry over any remaining hours at the reset date. If this setting is toggled ON, the “Number of days” entered is the maximum they can carryover. Each employee assigned this policy will carryover their current balance of hours/days at the reset date up to this maximum allowed.
    • Waiting period: Determines a specific number of days following an employee’s start date they have to wait before they accrue time for this policy.
      • Accrued during waiting period: You can determine if you would like employees to accrue during their waiting period by toggling this feature on. This allows employees to start accruing during their waiting period but employees will only receive that balance once the waiting period has been satisfied.
    • Maximum balance: Determines the maximum amount of hours/days a single employee’s balance can be.
    • Negative balance: Allows employees to request time off even if they do not have enough balance to make the request. If it is approved their balance will go into the negatives. If this setting is toggled OFF, the system will NOT let employees request time off if they do not have enough accrued balance.
      • Negative Balance Limit: This allows you to specify the maximum negative balance that employees can take.
    • Partial day requests: Allows employees to request between 1 hour off and the number of workday hours (typically 8 hours). If this setting is toggled OFF, employees can only request full work days off. 
    • Prorate accruals: This is toggled on by default for all accrual-based time off policies. This affects how many hours/days an employee accrues based on the policy start date. Employees will accrue the balance proportional to the number of days since the policy start date to their next accrual award date.
  10. Once you have configured your Advanced Settings > Next
  11. Review your policy, and make any edits by using the pencil icon
  12. Save Draft or Publish

Once you publish a time off policy, it can be assigned to employees. 

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