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How to Set Up Leave Types
How to Set Up Leave Types

Guide on how to set up leave types

Yuvo-san avatar
Written by Yuvo-san
Updated over a year ago

As an admin, you can set up different leave types for your company. The steps are as follows:
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1. Create a new leave type OR add a leave type from gallery
2. Edit the leave type

3. Assign to employees

Creating a new leave type

Click on "Create" under New Leave Type to create a custom leave type.

Proceed to edit the leave type.

Adding a leave type from gallery

Click on "Add" under From Gallery to choose from a pre-existing list of leave types.

Select any of the pre-populated leave types.

Click on the "Clone" button at the bottom of the leave type to use the template.

Editing the newly created leave type

In the 'Add Leave Type' window, there are various fields for you to fill in or edit.

  • Name: The name of the leave type is a mandatory field

  • Description: A short description of the leave type

  • Certificate Required: The leave type will require a document to be uploaded if checked

  • Is Compensatory Leave?: The leave type will be considered compensatory leave if checked

  • Is Unpaid Leave?: The leave type will be used in the auto-calculation of unpaid leave in payroll if checked

  • Allow Negative Balance?: The leave type will allow employees to apply for leave beyond their balance if checked.

Entitlement Settings

Choose how the entitlement for this leave type will work.

i. Fixed balance: A specific fixed number of days will be available to the employee

ii. Tenure-based addition: The number of days available to the employee will depend on how long they have been with the company.

To set up the rules for tenure based addition, set the starting balance for the leave type, then click the Add new rule button to customise the increment in leave balance every cycle.

There are three options for calculating the basis of the employee's tenure.

  • Leave period start date: Starting date of the leave period, usually 1 Jan. Differs from 'Calendar Year' as leave is only added after 1st work anniversary, not at the start of each calendar year regardless of whether the work anniversary has passed.

    • Note: the leave period year that an employee joins the company in would be considered the 0th year. Therefore their entitlement would increase only in the 2nd leave period year

  • Anniversary start date: A full year after the employee's join date

  • Calendar Year: Leave entitlement is added on 1 Jan each year

Illustrative example of tenure-based addition calculations:

Assuming an employee joined the company on 1 April 2020 and they move to the next tier of leave entitlement after they have completed 4 years (1 April 2024):

Balance added is based on leave period start date

  • Assuming leave period of 1 Jan - 31 Dec

  • Balance will be added on 1 Jan 2025 (i.e. next leave period start date)

Balance added is based on anniversary date

  • Balance will be added on 1 April 2024

Balance added is based on calendar year

  • Balance will be added on 1 Jan 2024 (same year)

iii. Unlimited balance: There is no limit to the leave balance for the leave type.

Count Days

Choose to count the leave days taken based on working days or calendar days. This is important as it will differ per leave type (e.g. maternity leave should count the leave days by calendar days, not working days)

  • Count half-day working day as a full day of leave?: when this is checked, leave taken on half working days will be counted as a full day of leave

Unused leaves

Choose what happens to any unused leave days

  • Forfeit: Unused leave will not be available to the employee after the leave period

  • Encash: Unused leave can be encashed by the employee (coming soon)

  • Carry forward: Unused leave can be carried over to the next leave period according to the settings. You can set a time period within which the carry forward leave must be used, and the carry forward leave balance limit can be set either in days or a percentage of their balance

Restrict new joinees from applying leave?

Choose whether new joinees should be restricted from applying for leave

  • No restriction: There will be no restriction, employees can apply for leave as soon as they join

  • During probation period: Allows employees to apply for leave even while on probation (The probation period must be set in their Career Progression by setting a date for their confirmation)

  • For first X months: Allows employees to apply for leave after a set number of months from their joining date

Proration Required?

Choose whether the leave entitlement needs to be prorated based on the employee's joining date

  • Incomplete month of service: Will take into account completed months of service and count any additional incomplete months as another month when prorating

  • Completed month of service (recommended by MOM): Will only take into account completed months of service based on the employee's joining date and use those months to prorate

  • Calendar days: Will prorate by the number of calendar days the employee has been in service

Balance Accrual

Choose how the leave balance should accrue to employees

  • Available Upfront: The entitlement will be given in full as soon as the employee joins the company

  • Accrued beginning of every Month: The total number of days of entitlement will be divided equally for each month and given to the employee on a monthly basis at the beginning of each month

  • Accrued end of every Month: The total number of days of entitlement will be divided equally for each month and given to the employee on a monthly basis at the end of each month (i.e. on the 1st of the next month)

  • Accrued beginning of every Quarter: The total number of days of entitlement will be divided equally for every quarter and given to the employee on a quarterly basis at the beginning of each quarter

  • Accrued end of every Quarter: The total number of days of entitlement will be divided equally for every quarter and given to the employee on a quarterly basis at the end of each quarter

Rounding settings

Choose how the leave entitlement should be rounded

  • Round-Up/Nearest whole number: If the available balance is 1.5, it will be rounded up to 2

  • Round-Up/Nearest half: If the available balance is 1.25, it will be rounded up to 1.5

  • Round Down/Nearest whole number: If the available balance is 1.5, it will be rounded down to 1

  • Round Down/Nearest half: If the available balance is 1.75, it will be rounded down to 1.5

Advance Leave Application

For leave types that requires the employee to apply in advance, check the box and add in the number of working days required in advance (e.g. 3 days in advance).

When applying for leave, the calendar will auto-calculate the advance days and allow or disallow the application with a prompt.

Additionally, there is an option for employees to accept a customized Terms & Conditions if required. Upon enabling the option, there will be a text box for the Terms & Conditions to be set.

Add to Leave Periods

Choose the leave period(s) that the leave type should be made available in

Be sure to click on the Save button when you are done.

You can now proceed to assign these leave types to your employees.

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