How to Manage Employee Time Off Policy

Article author
Learning Center Mekari
  • Updated

After adding an employee's schedule or work schedule,  you can also add leave or time off. Time off is leave or policy given to employees when they are not in the office. Leave policies can be adjusted based on the needs of each company.

Here are the steps:

  1. Click the "Profile" icon at the top right on the Dashboard menu.
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  2. Then click "Company Settings".
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  3. Click the  Time Management  menu then select  "Time Off".
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  4. Complete the required information. Enter the name of the leave in  the Policy Name (mandatory),  the leave code from the leave name created in the  Policy Code (mandatory) , and a brief description of the leave in  the Policy Description.
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    The leave policy code that will be displayed in the attendance and time off menu is only the first 5 characters.

  5. Enter the date the leave policy can be used in  Effective as of.
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  6. When you activate the Roster Leave feature, you will be asked to select a Policy Type. You can choose Default to create a general time policy. But if you want to create a leave policy for Roster Leave, you can select Roster Leave. Learn about it here.
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  7. If you check  the Default time off for new employees' information, the leave policy will be automatically assigned to employees who have just been added.  This setting can also be selected as the default for all employees or restricted via the filter box by selecting “Select Filter” .
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  8. Check Enable hourly time off and fill in Convert 1 day to [blank space] hours to determine the count of 1 day converted to 1 hour or multiples thereof.  Example: 0.5 - 1 - 1.5 - 2 and so on.
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  9. Tick This policy has unlimited balance, If the leave policy has unlimited balance.
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  10. However, if you do not tick This policy has unlimited balance, then you need to specify the policy that you want to apply to the leave, by selecting the leave policy type in "Policy Type". There are three policy types that you can use, namely:
    1. Anniversary
      Leave entitlements will be renewed on each employee's joining date.

      If you select Anniversary, then the Enable block leave option appears. Block leave is a leave policy that is commonly had by financial services companies.  This leave policy is usually valid for a minimum of 5 consecutive working days without mandatory breaks taken by employees.  However, these regulations may vary according to company policy.
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      - Minimum leave taken (days): Enter the minimum number of days of block leave that must be taken.
      - Minimum employee service length (months): You can fill in this optional column with the minimum number of months of employee service to determine when the employee must take block leave.

    2. Monthly
      Leave entitlements will be renewed every month on a predetermined date.
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      If you choose Policy Type Monthly, you need to complete other conditions, here is the explanation:
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      - First emerge: Settings to determine when the leave balance will first emerge.
      - Effective from join date: Settings to specify the start of the effective calculation of leave prorate since the employee joins.
      - Emerge after month(s): Settings to determine when the employee's leave balance will first appear. In general, this setting is used to provide new employees who are entitled to leave after 3 months of joining.
      - First emerge status: Setting to start the emergence of leave balances after a change in employment status.
      - Employee who join before … day will be rounded to 1 month: Rounding the length of service based on the date of joining, to one month. This determination becomes the basis for calculating the month-to-prorate leave days. Example: If employees who join before day 15 will be rounded to one month, then: Employees who join from 1-15, will have their leave calculated from that month. Whereas employees who join from the 16th onwards will not get the leave balance for that month.
      - Emerge day: select Anniversary, if the leave emerges is based on the employee's joining date in each month. Select Custom, if the leave emergence is based on a specific date without being affected by the employee's joining date.

    3. Annually
      Leave entitlements will be renewed every year on the specified date. If you choose Policy Type Annually, you need to complete other conditions, as follows:
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      - Day: The date specified as the renewal date for the amount of leave.
      - Month: The month specified as the date for renewing the amount of leave.
      - Effective from join date: Settings to determine the start of the effective calculation of leave prorate since the employee entered. If unchecked, the calculation will be based directly on the join date, regardless of the waiting period (emerge after).
      - Prorate on first emerge: Settings to specify that the prorate calculation is only done on the first emerge.
      - Emerge after: A setting to determine when the emergence of an employee's leave balance begins. Generally, this setting is used to provide new employees who are entitled to leave after 3 months of joining.
      - First emerge status: Settings to start the emergence of leave balances after a change in employment status.
      Employee who join before … day will be rounded to 1 month: Rounding the length of service based on the date of joining, to one month. This determination becomes the basis for calculating the month-to-prorate leave days. Example: If employees who join before day 15 will be rounded to one month, then: Employees who join from 1-15, will have their leave calculated from that month. Whereas employees who join from the 16th onwards will not get the leave balance for that month.
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      - Minimum leave taken (days): Enter the minimum amount of leave taken per day that must be taken consecutively by employees in 1 (one) period.
      - Eligible block leave after (year):  You can fill in this optional column with how many years after the joining date employees are required to take block leave.

  11. You can also determine Expired Time Off or the end period for leave. There are three settings that you can choose, namely:
    1. Months:  Determining the validity period of leave based on a certain number of months.
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    2. Selected day & month: Determining the validity period of leave based on a specific date without being influenced by the employee's joining date.
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    3. Minimum expiry: Determining the tolerance period for the expiry date for a leave policy, based on the number of months specified before the expiry date.
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    4. Anniversary (monthly):  Determination of the validity period of leave based on the employee's joining date each month.
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    5. No expiry date:   Leave has no expiration date.
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  12.  When you use the Annually policy type,  you can determine the rounding that will be used for the leave balance that appears, in the "Rounding" section, if the leave calculation prorate has a decimal fraction result.
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    - Round Down: rounding the number down
    -  As it is: according to the existing decimal number, no rounding
    -  Round Up: rounding the number up
    - Value: rounding adjusted to a specified number

  13. In the "Balance Generated" information, you can also determine the amount of leave balance based on the employee's Length of Service (applicable if you choose policy type monthly/yearly).
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    - If you choose policy type Annualy, the way to read the policy is as follows:
    Year ... to year .... equal ... days of leave.
    - If you select policy type Monthly, the policy reads as follows:
    Month ... to month .... equal ... days of leave.

  14. Next, if you have completed all the required information, click  "Save & Add Policy" .
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Next, you can provide the time off policy that you have set to employees in the Time Management menu by users with the Superadmin or Admin role. You can set time off manually or in bulk.