Understanding the Fundamental Concepts of Time Off and How Factorial Carries Out its Absences Calculations.

In this article we explain the most relevant concepts of the Time Off section so that you can gain a better understanding of its function and how it is calculated within the system.

What is Time Off? 

Companies offer paid an unpaid time off to employees, following regulations or creating custom rules on top of it. Factorial allows to set rules for these absences, communicate them to employees, and keep track of them.

Administrators: use time off to set leave policies (holidays, sick leaves, parental leaves, etc), assign employees to these time off policies, and track how employees use time off.

Employees: use Time off to be informed of the company’s policies, to request and use absences, and to keep track of their own usage of time off. 

Absence Types

Factorial shows a list of absence types by default. Administrators can create as many custom absence types for their company.

Once the absence types has been created, administrators can assign them to one allowance within the time off policy. 

🔺 Please note that the same Type of Absence cannot be assigned in Allowances of the same Time Off Policy. 

👩‍🏫 Absence Types - FAQ´s

Time Off Policies 

When a new company is created, a Time Off Policy would come by default. Administrators as well can create as many new policies as they need.

Examples of New Time Off Policies: Per City, Per Office, Per working group. 

💡 An employee can only be assigned to 1 Time Off Policy 


The amount of Time Off days are configured and stored within the Allowances of each Policy. Allowances are like "buckets" of time off that employees can use.

From an employee’s point of view, the status of each allowance is shown through these counters on their Time off Section: 



Cycles define when a time-off allowance counter starts or resets.

💡 An allowance can only be use in one cycle type, this configuration doesn't change and its the same from the beginning until the end of the allowance life.

Cycle Types: 

- Spain: January-December
- France:
June - May (RTT: Jan/Dec non accumulative). 
- Mexico: Cycles start on the employee anniversary 

Monthly Cycles: 

In this option, Factorial use the allowance cycle configuration to set the first date of the month and the last day of the month based on the cycle configuration. This range of dates is used on the carry over calculation and to know when Factorial needs to set the new cycle.

• January - December: January 1st to December 31st
• July - June: July 1st to June 31st

Employee Starting Date: 

This option uses the employee starting date to set the beginning of the allowance cycle and it has the contract as a dependency. This range of dates is used on the carry over calculation and to know when Factorial needs to set the new cycle.

  • The employee start day is Feb 29th. When this happens and the year is not a leap year Factorial sets the date to Feb 28th.
  • The employee didn't start yet and doesn't have a starting date. When this option happens, Factorial set the current date which avoids application crashes.

The starting date is April 1st, 2020
→ The first employee cycle is from April 1st, 2020 to March 31st 2021.
→ Second cycle starts on April 1st, 2021 to March 31st 2022.

Available Days/Hours 

By Available we mean the number of days/hours an employee have at his/her disposal to use. Because there are 3 different ways to configure these available days, one will notice in the allowance that these days can be all granted a the beginning of the year. Or, they can be  generated on a daily or monthly basis.

💡 This configuration only sets up the availability of days/hours and doesn't consider the carrry over days/hours from previous cycles. 

˜ Days/Hours are accrued all at once: 

All the days/hours are available on the first day of the cycle, in the allowance counters (Accrued) Factorial shows the same value we have configured in the Day/Hour Allowance field.


˜ Days/Hours are accrued throughout the year, on a monthly/daily basis: 

This option uses the contract (start_date, termination date, and work schedule) information as a dependency to calculate the number of calendar days for a given period and, the allowance cycle.

• Monthly Basis: Days will be generated every month. These days will appear visible at the beginning of the following month. For example: If an employee has 25 days - on february 1st the employee will have generated 2.08 (25/12).
• Daily Basis: The generation of days is updated every "day".

Prorated Days? 

If an employee's first day in the company is in July, we understand here that he/she does not have a full cycle (1/1 to 31/12). Due that the employee does not have a full cycle, Factorial would make a prorated calculation of the available days that this employee has at his/her disposal to use based on  dates - the pro-rata share.

If the allowance of that employee is set in 23 days for a whole cycle. The employee that entered in July 1, would have a pro-rated calculation = 11.5 days at his/her disposal to use. 

How Factorial Round's Up the Calculation of Time Off?

  • Decimals: Factorial does not round decimals.
  • Half Days: 2.33 become 2.5 (if less then 2.25 -> 2; if between 2.25 and 2.5 -> 2.5; if more than 2.5 -> 3). So, if 2.33 become 2.5, they have the later option.
  • Days: The calculation is based on days in the year and calendar days (no working days), the rounding happens at the end: If an employee worked two month (60 days) Factorial would do the following calculation: 60 / 365 * 28 => 4,6027 - on this case we round up to 5.

    Another example for an employee who started the 23/11/2020. For 2020 (from January to December). Here Factorial would calculate 38 days (using the full day). 
    (38.0 / 365.0) * 28.0 => 2.915068493150685 and we rounding up to 3 days

Important to mention: the allowance cycle is defined to jan-dec on that example ↑. having a different cycle, the amount of calendar days changes.