The Leave & Holiday Management section enables administrators to create leave structures, define leave policies, configure holiday calendars, and manage leave approvals.

It consists of the following components:

• Leave Setup                
• Holiday Setup                
• Leave Reports                
• End of Cycle (EoC) Process                

1 ) Leave Setup

Leave Setup is used to configure the organization's leave framework by creating leave types, leave cycles, and leave policies. The process of defining different types of leaves available for employees within the organization.

Creating a Leave Type 

A Leave Type defines a category of leave that employees can apply for, such as Casual Leave, Sick Leave, Earned Leave, or Compensatory Off.

Each leave type can have its own:

• Allocation rules  
• Approval process                
• Carry-forward settings                
• Encashment policy                
• Restrictions                

Navigate to Attendance → Leave Setup. And Click Create Leave

1. Basic Details

A. Leave Name

Enter the name of the leave type.

Examples

• Casual Leave               
• Sick Leave                
• Earned Leave                
• Maternity Leave                
• Compensatory Off                

B. Short Name

Enter a short identifier for the leave type. This abbreviation is used throughout the system in reports, calendars, and leave balances.

Examples

•  CL                
•  SL                
• EL                

C. Entitlements

The Entitlements section determines how leave balances are allocated and managed for employees.

a. Leave type - Defines the classification of leave. Options include:

• Paid Leave                
• Unpaid Leave                

Paid leaves are deducted from the employee's allocated leave balance, while unpaid leaves may result in Loss of Pay (LOP) depending on organizational policies. 

b. Leave Accrual Details - Defines how leave balances are credited to the employees. The options available are :

• Cycle  - The entire leave quota is credited at the beginning of the leave cycle.
  Example: If an employee is entitled to 12 Casual Leaves annually, all 12 leaves are credited on the first day of the leave cycle.
• Monthly Accrual - Leaves are credited gradually every month.
  Example: An annual entitlement of 12 leaves will be credited as 1 leave per month.

• At Start of Month 
• At End of Month 
• After 15 Working days - Leaves are credited only after employees complete a minimum number of working days. Employees become eligible for leave after completing 15 working days

c. Pending Leave Balance at End of Leave Cycle - This section defines what happens to unused leave balances when the leave cycle ends. The Options Available are:

• Allow Carry Forwarding - Unused leave balances are transferred to the next leave cycle. This option is useful when organizations want employees to retain unused leave entitlements.
• Allow Leaves Encashment - Unused leaves can be converted into monetary compensation.

d. Precedence of Carry Forward and Encashment - When both Carry Forward and Encashment are enabled, administrators can define which action takes precedence. The Options Available are : 

• Carry Forward Over Encashment - Unused leaves are carried forward first. Any remaining eligible balance is then considered for encashment.
• Encashment Over Carry Forward - Unused leaves are encashed first. Any remaining balance is carried forward to the next cycle.

D. Restrictions

The Restrictions tab is used to define the rules and conditions under which a leave type can be applied, approved and managed. These settings ensure leave policies are applied consistently across employees.

a. Holiday’s Between Leave Period - Determines how holidays are treated when they fall between leave dates.

• Consider as Leave - Holidays occurring between the leave start and end dates are counted as leave days and deducted from the employee's balance.
• Consider as Holiday - Holidays are excluded from leave deduction and do not affect the employee's leave balance.

b. Week Off’s Between Leave Period - Determines how weekly offs are treated during a leave period. 

• Consider as Leave -  If weekly offs (such as Saturday and Sunday) fall between the start and end dates of an employee's leave period, they will be treated as leave days and deducted from the employee's leave balance.
• Consider as Week Offs - Weekly offs are excluded from leave calculations and are not deducted from the leave balance.

c. Allowed on Probation - Controls whether employees who are currently under probation can apply for this leave type. 

• Allow - Employees who are currently under probation are eligible to apply for this leave type.
• Deny - Probation employees cannot apply. 

Important Note: This setting cannot be modified after the leave type is created.

d. Clubbing with Other Leave Types - Determines whether this leave type can be combined with other leave categories within a single leave application. 

• Allow - Employees can combine this leave type with other eligible leave types in a continuous leave request. 
• Deny - This leave type must be applied separately. 

e. Backdated Leave Application - Determines whether employees can apply for leave for past dates.

• Allow - Employees are allowed to submit leave requests for past dates. Useful when:

1. Leave was taken due to emergency
2. Employee forgot to submit prior approval
3. HR needs retrospective adjustment

• Deny - Employees can only apply for leave on or before the leave date.

f. Allow Backdated Leave Application Up to - 

Employees can apply for leave retrospectively only within the set calendar days from the leave date.

This prevents excessive retroactive leave claims.

g. Leaves to be Applied – Minimum Days Prior

h. Maximum Number of Carry Forward Leaves That Can Be Accumulated Over a Period

At leave cycle reset:

•  Any remaining balance expires                
• Balance resets according to new entitlement                

This encourages leave utilization within the active cycle.

i. Maximum Number of Leaves to be Applied

This restriction is useful for:

• Permission leave                
• Half-day adjustment leave                
• Short-term personal leave                

5. Leave Cycle Creation

The Leave Cycle feature is used to define the operational period during which leave balances are allocated, tracked, accrued, carried forward and reset for employees.

A leave cycle acts as the foundation for all leave policies, ensuring leave entitlements are calculated within a defined timeframe.

The system allows administrators to create leave cycles and associate leave policies with each cycle for effective leave management.

Accessing Leave Cycle Setup-

Navigate to:

Attendance →  Leaves and Holidays → Leave Setup → Leave Cycle & Policies

This section displays all configured leave cycles with:

1. Leave Cycle Name                
2. Leave Duration                
3. Total Leave Policies Assigned                
4. Policy Management Actions                

Administrators can:

1. Create new leave cycles                
2. View assigned leave policies                
3. Add leave policies to a cycle                
4. Manage or modify cycle settings                

Creating a Leave Cycle-

Click Create Leave Cycle to open the configuration window.

The system requires the following details:

1. Leave Cycle Name

This is the unique name used to identify the leave cycle.

It helps administrators distinguish between yearly leave structures.

2. Leave Cycle Type

The system provides three cycle options.

• Option 1: Calendar Cycle                

Period: 01 January to 31 December

This follows the standard calendar year.

How It Works

1.  Leave balances are allocated on January 1st               
2. Leave usage is tracked until December 31st                

•  Option 2: Financial Cycle                

Period: 01 April to 31 March

This aligns leave tracking with the financial year.

How It Works

Leave balances begin on:

1 April

Cycle ends on:

31 March (next year)

Useful when HR leave planning is aligned with accounting and payroll cycles.

• Option 3: Custom Cycle                

Allows organizations to define their own leave period.

How It Works

Administrators manually specify:

1. Start date                
2. End date                

The system applies leave policies only within that custom period.

3. Select Year

Defines the operational year of the leave cycle.

This helps the system:

1. Identify entitlement period                
2. Organize reports                
3. Separate historical leave data                
4. Trigger annual reset actions                

4. Select EOC Reminder (End of Cycle Reminder)

This determines when the system sends alerts before leave cycle closure.

The reminder notifies administrators to:

1.  Review unused balances                
2.  Process carry-forward                
3. Approve pending leave requests                
4. Complete leave encashment actions                
5. Finalize cycle closure tasks                

Prevents:

1. Missed leave resets                
2. Carry-forward errors                
3.  Pending approvals crossing cycle boundaries                

5. Create Action

Once all fields are completed:

Click Create

The system validates:

• Unique cycle name                
• Valid date configuration                
• Year selection                
• Reminder schedule                

If valid, the leave cycle is created and displayed in the Leave Cycle list.

6. After Cycle Creation:

Administrators can:

A. View Leave Policies                

The View Leave Policy option allows administrators to review all leave policies created under a selected leave cycle. It provides complete visibility into the structure, rules and configuration of each leave policy without editing it directly from the main list.

How to Access View Leave Policy

Navigate to:

Attendance → Leaves and Holidays → Leave Setup → Leave Cycle & Policies

The Leave Cycles page displays all created leave cycles along with their configured policies.

For each leave cycle, the following details are shown:

A. Leave Cycle Name

Displays the name assigned to the leave cycle
 

B. Leave Cycle Duration

Displays the exact start and end dates of the cycle.

This defines the validity period for all leave policies assigned under that cycle.

C. Total Leave Policies

Shows the number of leave policies configured for that cycle

This gives a quick overview of policy setup completeness.

D. View Button

Clicking View opens the leave policy information for that cycle.

6. Leave Policy Creation

The Add Leave Policy feature allows administrators to create and configure structured leave policies for employees within a selected leave cycle. It provides a step-by-step workflow to define policy details, configure overtime handling, assign leave entitlements, set approval workflows and allocate policies to users based on roles or attributes.

This ensures leave management is standardized, transparent and aligned with organizational HR policies.

Step 1: Basic Details

This is the first step where the leave policy is created and identified.

Leave Policy Name

Enter a unique and descriptive name for the leave policy.

Inherit Leave Policy

This option allows you to duplicate settings from an existing leave policy instead of configuring everything manually.

If enabled:

You must select:

• Leave Cycle → Choose the cycle from which to inherit the policy                
• Leave Policy → Select the existing policy to copy                

Step 2: OT Usage and Compensation Off

This step defines how overtime (OT) hours are handled within the leave policy.

Option 1: Pay for OT Hours

If enabled:

Employees are financially compensated for overtime worked.

OT hours are converted into payroll compensation based on company-defined overtime rates.

Important Note:
OT reports can be downloaded from the Attendance module for payroll calculations.

Option 2: Convert OT Hours into Compensatory Off

This section defines how overtime (OT) worked by employees is managed under the leave policy.

When enabled, employees receive leave credits instead of financial OT payment.

A new Comp-Off Settings section appears for configuring conversion rules and leave restrictions.

Comp-Off Settings

These settings define how overtime is converted into leave and how compensatory leave behaves.

1. No. of OT Hours Equivalent to Half Comp-Off Day

This field defines the number of overtime hours required to earn half a compensatory leave day.

2. No. of OT Hours Equivalent to Full Comp-Off Day

This field defines the number of overtime hours required to earn one full compensatory leave day.

3. Allow Carry Forwarding in Next Year

This setting defines whether unused compensatory leave can be carried into the next leave cycle.

Option: Allow

Unused comp-off balances move to the next leave cycle.

• Option: Deny                

Unused comp-off expires at the end of the cycle.

4. Allow Clubbing with Other Leave Types

This controls whether compensatory leave can be combined with other leave categories.

•  Option: Allow                

Comp-Off can be combined with:

1. Casual Leave                
2. Sick Leave                
3. Earned Leave                
4.  Other eligible leave types                

•  Option: Deny                

Comp-Off must be used independently.

Employees cannot combine it with other leave categories.

5. Holiday’s Between Leave Period

This setting defines how public holidays falling between comp-off leave dates are treated.

• Option: Consider as Leave                

Holidays between leave days are counted as leave days.

• Option: Consider as Holiday                

Holidays are excluded from leave deduction.

Step 3: Select Leaves

This step links leave types to the policy and defines leave allocation limits.

Leave Name

Select the leave type to assign.

• Cycle Limit                

Defines the maximum number of leave days allowed during the leave cycle.

• Monthly Assigned Leaves                

Defines monthly leave allocation.

• Leaves Assigned Every 15 Days                

Defines bi-monthly leave accrual.

•  Carry Forward Limit                

Defines how many unused leaves can move to the next cycle.

• Encashment Limit                

Defines the maximum number of leave days employees can cash out.

Step 4: Leave Application Settings

This defines who receives leave requests and how approvals are processed.

•   Leave Application Emails Sent To                

Determines who receives leave request notifications.

Reporting Manager (Mandatory)

The reporting manager always receives leave application notifications.

This ensures direct supervision approval workflow.

Admin

If enabled:

Admins also receive leave notifications.

User

If enabled:

Employees receive email confirmations of their own leave applications.

• Leave Approval Rules                

Defines who approves leave requests.

Option 1: Reporting Manager Only

Leave is approved only by the employee’s reporting manager.

Option 2: Reporting Manager OR Admin

Approval can be completed by either:

1.  Reporting Manager                
2.   Admin                

Option 3: Reporting Manager AND Admin

Leave requires dual approval.

Both must approve before leave is confirmed.

Step 5: Assign Leave Policy

This step assigns the completed leave policy to users.

Policies can be assigned using:

•  Assign by Users                

Assign policy to specific employees.

• Assign by Roles                

Assign policy based on employee role.

Examples:

1. Super Admin                
2. Site Admin                
3. Manager                
4. Front Desk                
5. User                

• Assign by Attributes                

Assign based on custom attributes set by the organization.

• Assigned Users Panel                

Displays all users currently linked to this policy.

Helps verify assignment before saving.

Step 6: Final Save

Click Save to activate the leave policy.

Once saved:

• Policy becomes active for assigned employees                
• Leave rules are enforced automatically                
• Approval workflow is enabled                
• Leave balances are managed according to policy settings.                

The Leave Cycle module defines the time framework within which leave policies operate.

It controls:

• Leave entitlement validity                
•  Annual resets                
• Carry forward processing                
• Leave policy assignment                
•  End-of-cycle notifications                
• Historical leave tracking                

Proper leave cycle setup ensures accurate leave accounting, smooth policy execution and organized HR operations across the organization.

2 ) Holiday Setup

The Holiday Setup section allows administrators to configure organization-wide holiday calendars for a selected leave cycle and assign them to users based on location, role or attributes. This ensures accurate holiday tracking, leave calculations and discretionary holiday allocation across the organization.

The Holiday Setup process is completed in three steps:

Step 1: Basic Details-

This step captures the foundational details of the holiday policy.

Fields-

Holiday Policy Name
Enter a unique name for the holiday policy.
This helps identify the policy for reporting and future reference.

Select Leave Cycle
Choose the leave cycle to which this holiday policy applies.

The leave cycle defines the operational period for the holiday calendar (for example, January–December or Financial Year cycle).

This ensures that holidays are correctly mapped to the selected leave year and integrated with leave calculations.

Step 2: Select Country and Configure Holiday Chart-

This step defines the holiday list for the selected region.

Add Holiday

Click Add Holiday to create a new holiday entry.

Holiday Chart typically include:

•  Holiday name                
• Holiday date                
•  Holiday type (Compulsory / Discretionary)                

Added holidays are reflected in the Holiday Chart immediately.

Step 3: Assign Holiday Policy-

This step allows assigning the configured holiday policy to employees.

Annual Discretionary Limit

Defines the maximum number of discretionary holidays an employee can avail during the selected leave cycle.

Assign By Users

Assign the holiday policy directly to selected employees.

Use when specific users require custom holiday applicability.

Assign By Roles

Assign the policy to all users under selected organizational roles.

Assign By Attributes

Assign policies using custom attributes set by the organzation..

Useful for large-scale automated holiday distribution.

Assigned Users Panel

Displays all users currently assigned to the policy.

Admins can:

• Review assignments                
• Remove selected users                
•  Clear all assignments                

Once saved, the holiday policy becomes active for assigned users and integrates with:

•   Leave request validation                
•  Attendance calculations                
•  Holiday-based leave exclusions                
• Leave balance processing                
• Reporting and analytics.                

3 ) Leave Reports

The Leave Reports section provides visibility into employee leave allocation, usage and remaining balance.

This helps HR and managers monitor leave trends and employee leave consumption.

Features-

Detailed View

Displays leave data in table format.

Calendar View

Displays leave schedules in calendar format.

Leave Cycle Filter

Allows filtering reports by leave cycle year.

This report provides centralized visibility into leave management.

Managers can use this data for workforce planning and resource allocation.

3 ) EoC Process (End of Cycle Process)

The End of Cycle process is used to handle pending leave applications before the leave cycle closes.

This ensures no leave requests remain unresolved during year-end processing.

Step 1: Pending Leave Applications-

• Screen Overview                

Displays all pending leave applications for the selected leave cycle.

• Notify All Button                

Sends reminders to all pending approvers.

Helps ensure pending leave requests are resolved before cycle closure.

• Leave Cycle Selection                

Allows filtering by year or leave cycle.

The EoC process is critical for maintaining accurate leave balances and compliance.

Pending leave requests may affect:

•  Leave carry forward                
•  Payroll calculations                
•  Leave encashment                
• Annual leave closure                

This process ensures all pending records are addressed before completing the leave cycle.