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Leave Code Policy Setup Documentation

Leave → Leave Code Policy → Add

Overview​

The Leave Code Policy module allows administrators to define leave rules, allotments, applications, restrictions, carry forward, and allocation criteria for employees within the organization.

Leave Code Policy List​

This page displays all existing leave policies with their details.

list_page

Key Columns:

  • Policy Name – Name you have assigned to the leave policy.
  • Leave Code Name – Short code representing the type of leave (e.g., CL, EL, LWP).
  • Leave Calendar – Defines whether the leave follows a calendar year or financial year.
  • Leave Allotment – Shows how many leaves are allotted and on what basis.
  • Effective Date – Date from which the leave policy becomes applicable.
  • Last Updated Date – Date and time when the policy was last modified.
  • Status – Indicates whether the leave policy is active or inactive.
  • Actions – Available operations such as viewing, assigning, editing, or copying the policy.

Step 1: Basic Details​

Click on the + Add button in the list page to create a new leave policy.

In this step, basic information about the leave policy is configured.

basic

Fields:

  • Policy Name – Name of the leave policy
  • Leave Code – Select applicable leave code (for eg: PL,LWO,Maternity leave,Paternity leave etc). All this code will come from Leave Code Master.
  • Leave Calendar
    • Calendar Year (January–December)
    • Financial Year (April–March)
  • Effective Start Date
    • The start date will always be the 1st day of the selected month
  • Policy Description – Optional description
  • Year End Closing
    • Automatic
    • Manual
  • Allow Next Calendar Leave Request – Enable/disable future leave requests

Click Next to proceed.

Step 2: Allotment​

This step defines how leaves are allotted to employees.

allotment

Configurations:

  • Leave allotment starts from:
    • Date of Joining
    • Date of Confirmation
  • Leave allotment frequency:
    • Monthly
    • Quarterly
    • Half-Yearly
    • Yearly
    • One Time
  • Allotment basis:
    • Start of the cycle
    • End of the cycle
  • Allotment calculation:
    • Attendance-based
    • Non-attendance-based
  • Allotment type:
    • Fixed
    • Pro-rata
  • Number of leaves per cycle

Probation Period:

  • Same as regular allotment
  • Restricted allotment

Click Next to continue.

Step 3: Application Rules​

This step controls how employees can apply for leave.

rules

Rules Include:

  • Eligibility to apply for leave after:
    • Specific number of calendar days
    • Based on date of joining or confirmation
  • Leave balance visibility:
    • Before eligibility
    • After eligibility
  • Leave application access:
    • Allowed anytime
    • Restricted
  • Notice period rules:
    • Available leave
    • Maximum leave
  • Proof of leave document:
    • Not required
    • Optional
    • Mandatory
  • Advance leave:
    • Allowed
    • Not allowed

Note: These rules are not applicable to Admin users.

Click Next to proceed.

Step 4: Restrictions​

This step defines limits and constraints on leave usage.

restrictions

Restrictions Include:

  • Minimum and maximum leave days per transaction
  • Minimum gap between two leave applications
  • Maximum leave instances per year
  • Maximum leaves per month
  • Sandwich leave rules:
    • Week-off / Holiday between leaves
    • Leave between week-offs / holidays

Click Next to continue.

Step 5: Carry Forward​

This step defines how unused leaves are handled at the end of the cycle.

carry_forward

Options:

  • Enable or disable carry forward
  • Carry forward or encash remaining leave balance
  • Maximum carry forward:
    • Number
    • Percentage
  • Remaining balance handling:
    • Lapse
    • Encash
  • Restriction on carry forward
  • Encashable on separation

Click Next to proceed.

Step 6: Allocation​

This step determines which employees or groups the policy applies to.

allocation

Allocation Rules:

  • Allocate policy based on:
    • SBU
    • Company
    • Other organizational attributes
  • Include or exclude specific groups
  • Add multiple allocation rules if required

Click Review Policy to verify all configurations.

Step 7: Review & Submit​

review

After reviewing all configurations:

  • Click Submit to save the leave policy
  • The policy will appear in the Leave Code Policy List
  • Status can be enabled or disabled as required

Important Notes​

  • Leave policies are applied based on allocation rules
  • Effective date must always start from the first day of the selected month
  • Changes to active policies may impact employee leave balances
  • Admin users are exempt from application restrictions

Conclusion​

The Leave Code Policy module provides flexible and comprehensive control over leave management, ensuring compliance with company policies and regional requirements.

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