Leave Types Setup and Management in HRM

Riya

Jul 15, 2024 - 6 mins read

Leave types help you set up and manage leave policies based on your company's requirements and compliance with government regulations. Common leave types include Annual/Casual Leaves, Sick Leaves, and Paid/Unpaid Leaves.

Defining Leave Types and Their Options

Leave Code

  • Description: A unique 2-digit alphabetic code for each leave type.
  • Purpose: This code is used internally to perform leave functions and helps identify the leave type.
  • Example: AL (Annual Leave)

Leave Name

  • Description: The name of the leave type.
  • Purpose: Used throughout the system to refer to the specific leave type. It can be defined in the local language.
  • Example: Annual Leave

Gender

  • Description: Specifies the applicable gender for the leave type.
  • Purpose: Some leaves, like Paternity or Maternity leaves, are gender-specific. Other types, like Sick or Medical leaves, apply to all genders.
  • Example: Paternity Leave for male employees.

Quota

  • Description: The default number of days per annum an employee is entitled to.
  • Purpose: This is the initial leave count, which can be adjusted based on the employee's grade and reflected in employee forms.
  • Example: 12 days per year.

Carry Forward

  • Description: Allows unused leave to be carried forward to the next financial year.
  • Purpose: If enabled, specifies the maximum number of days that can be carried forward.
  • Example: True (Enabled)

Max Carry Forward

  • Description: The maximum number of days an employee can carry forward to the next year.
  • Example: 5 days

Pro-Rate

  • Description: Adjusts leave entitlements based on the period an employee has worked within the timeframe.
  • Purpose: Ensures that employees who haven't worked the full period receive a proportionate leave entitlement.
  • Example: If an employee joins in July, they receive 6 days of leave instead of 12.

Apply Before

  • Description: The number of days before which the leave must be applied.
  • Purpose: Ensures adequate notice for the employer to arrange alternative coverage or reschedule work.
  • Example: 7 days

Leave Day Type

  • Description: Specifies whether the leave is taken as a full day or half day.
  • Purpose: Defines the duration of the leave.
  • Example: Full Day or Half Day

Paid

  • Description: Indicates whether the leave is paid or unpaid.
  • Purpose: Differentiates between leave types that are fully paid, partially paid, or unpaid.
  • Example: True (Paid Leave)

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