Time off allowances are counters used to limit the number of days or hours that an employee can be absent from work. Learn more about time off allowances here.
Where to find and create time off allowances?
- On your sidebar, head to Settings
- Go to the Time section
- Click on Time off
- Choose the policy in which you want to add time off allowance and click on See policy
Remember that you need to have at least one time off allowance for a time off policy. If you have at least one, then you will be able to delete the second one.
You can always edit time off allowances, but once created, you won't be able to change the type of allowance.
You can create as many time off allowances as you need within the same time off policy. For example, you can create an allowance for the standard company holidays that every employee is entitled to, and add another allowance for days accrued by working overtime.
How to configure time off allowances
Basic information
1. Allowance name
In this section, you can define:
- Allowance Name: This is the name that employees will see in their time off section when they check their leaves.
- Description (Optional): You can add a short description to provide context or further details about the allowance.
2. Type of allowance
- Fixed balance
This time off allowance is perfect if you want to offer a fixed number of days off to your employees. Companies can use a fixed balance time off allowance if they have a set number of days off in their time off policy. This allowance applies regardless of the employee's working time.
- Based on time worked
This time off allowance is perfect if you want to offer a variable amount of time off based on the time worked.It is the ideal solution for companies that want to offer more flexibility to their employees. Time off based on time worked is useful for workers who get their salaries and time off according to the hours worked (also for 0-hour contract workers in the UK, for example).
- Overtime
This allowance is suitable for companies that want to reward employees who work extra time. This type of allowance can be used to build employee loyalty and strengthen the relationship between employer and employee. By showing that they value their employees' hard work and dedication, companies can create a positive work environment and foster a sense of belonging among their staff.
3. Absence types
This section allows you to add specific absence types (previously created) to the allowance. The system will provide a dropdown menu with available absence types to include in the counter.
Important Considerations:
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Each absence type can only be assigned to one allowance within a policy.
- For example, if you create an absence type called "Birthday Leave" and assign it to the vacation counter in a policy, you cannot add it to another counter (e.g., a separate Birthday Leave counter) within the same policy.
- Once an absence type is added to an allowance, it will be marked in gray to indicate that it is already in use and cannot be assigned elsewhere in that policy.
Cycle settings
The cycle settings define when the allowance period starts and how long it lasts before it resets. This is essential for ensuring that leave balances are updated correctly over time.
- Start Date: Determines when the allowance cycle begins.
- Duration: Defines how long the cycle lasts before resetting (e.g., annually, quarterly).
For example, a vacation allowance may start in January and last for 12 months, resetting the balance in the following January.
Allowance settings
The allowance settings define how leave days are allocated, displayed, and accrued. These settings include:
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Defining the Allowance in Days or Hours
- The allowance can be set in days (e.g., vacation days) or hours (e.g., medical appointments).
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Displaying Allowance Days
- Days and Half-Days: The counter displays leave as whole and half-days (e.g., 23.5 days).
- Decimal Format: The counter shows leave with decimal rounding (e.g., 23.6 days, rounded up).
- Rounded Up: Leave is always displayed as whole numbers, rounding up any fractions.
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Base Allowance Days
- Specify the base number of days the counter should include (e.g., 23 vacation days).
- Unlimited Leave Option: If selected, no limit applies.
- Working Days vs. Calendar Days:
- Working Days: The allowance is based on the employee’s contract schedule (e.g., Monday to Friday).
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Calendar Days: The allowance applies to all days, including weekends.
- Bank Holidays & Weekends: If the absence period includes a bank holiday or weekend, decide whether these days should count as leave.
- Specify the base number of days the counter should include (e.g., 23 vacation days).
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Handling Bank Holidays
- Include or Exclude bank holidays from leave calculations when they fall within an absence period.
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Prorating Base Allowance Days
- Pro-rated Leave: If enabled, leave is calculated based on the months an employee will work in the cycle.
- Full Allocation: If disabled, employees receive the entire allowance regardless of their start date.
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Maximum Allowance Days
- Set a maximum number of days an employee can accumulate in the counter. This prevents overuse of adjusted absence days.
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How Allowance Days Are Accrued
- All at Once: Full leave is granted at the start of the cycle.
- Daily Accrual: Leave accumulates day by day.
- Monthly Accrual:
- On the 1st of the month.
- On the 15th of the month.
- On the last day of the month.
- Twice a Month Accrual:
- On the 1st and 15th.
- On the 15th and last day.
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When Can Employees Use Accrued Leave?
- Same Cycle: Employees can use their accrued leave within the same cycle.
- Next Cycle: Accrued leave is only available in the following cycle (e.g., next year).
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Can the Counter Go Negative?
- Yes: Employees can request more leave than they currently have available.
- No: Employees cannot request leave beyond their allocated balance.
Change the days of an absence counter
If you want to change the days of the counter, you should contact support. For example, if the holiday days are different each year, you should contact support so that the previous years' settings are not affected.
Carryover settings
Carryover settings determine whether unused leave from one cycle can be transferred to the next cycle and how long those days remain available.
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How many days carry over?
- Unlimited Carryover: All unused leave from the previous cycle is carried over without restriction.
- Limited Carryover: Set a maximum number of days that can be carried over.
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Expiration of Carried-Over Days
- Define when carried-over days expire (e.g., within three months of the new cycle).
Example: If an employee has 10 unused vacation days from 2024, they can be carried over into 2025 but must be used by March.
Tenure periods
Tenure periods allow companies to grant additional leave days based on the employee's length of service.
- Define the number of additional days employees receive based on their tenure.
- Set the time intervals at which extra leave is granted (e.g., every 10 years).
For example, a company may decide that employees will receive 5 extra vacation days after completing 10 years of service. This ensures that long-serving employees are rewarded with additional leave entitlements.
Learn more about tenure periods here.