Accessible to Admin, Account Admin, and HR Partner.
A time-off policy helps you define and establish the types of time off, holiday calendars, work weeks, and policy rules like Accrual and Balance Carryover.
With Freshteam, you can create multiple time-off policies for each team or region.
An Account admin, an Admin, or an HR Manager can create a time-off policy/ custom time-off policy in Freshteam.
Before you create your policy, make sure to set your Time-off Preferences as this will reflect on all your policies, which are not editable once they are created.
- To go to Time-off Preferences, go to Settings > Time-off > Time-off Setup > Preferences.
- Enable or Disable the options shown in the below screenshot as per your requirements and then go on to create your policy.
Steps to follow to create a time-off policy
Go to Settings > Time-Off.
In the “Time-off” Section, Time-off Setup > Policy.
To create a new policy, click on the “New Policy” button at the top or in the middle if it is your first policy.
The “Time-off Policy” templates tab will pop up.
Choose the country of your choice from the drop-down.
You can use the standard time-off template provided by Freshteam for the selected country to create your new policy or you can directly choose the option to create a custom timeoff policy.
You can change the number of days in a type within the template.
Creating the Time-off Policy
After giving your time-off policy a title, you can choose to make it the default policy in which all employees have to be mapped by enabling the toggle. If not required, leave it disabled. After this, you can choose or fix the following things for your timeoff policy.
- Policy Period: The start and end date of your policy, the time interval in which it is applicable.
- Applicable Date: The date from which the new policy will be applicable to the employees mapped to this policy.
- Holiday Calendar: The Holiday Calendar you wish to map to the policy, when you choose to create a custom policy, you have to declare which country's holiday calendar to map to this policy.
- Workweek: The workweek for your policy determines which days of the week are working days and which days are holidays.
The next step in creating your timeoff policy is fixing the timeoff types and the rules for each type.
Based on the country whose template you chose, few types of timeoff will be pre-populated in your policy setup like Sick, Earned, Maternity and Paternity, etc., on top of this, you can add timeoff types as you wish and also set the rules for each.
To create a new timeoff type,
Select the “+ Time off Type” button present below the existing timeoff types. Once you click on it, you can choose from existing, that is already created timeoff types from other policies.
You will see a drop-down with all the types you have created. You can choose one from it.
You can also add a new type by clicking “+ Create New”.
You will see the below pop-up, fill in the necessary details, and click Save to save the time-off type.
Once you are done adding all the timeoff types, you can then set the rules for each.
Define Accrual Frequency, Balance Carryover, Request Rules, and Other additional rules for each time-off type.
Accrual Frequency - The frequency at which the leaves are credited. (Quarterly, Monthly, Yearly, Once)
When the Proration is required - The number of leaves available for an employee is calculated based on their start date.
When the Proration is not required - The number of leaves available will be based on the employee’s leave policy (from the accrual frequency rate).
Choose the Accrual Type, if it is fixed, or tenure-based, or is an unlimited balance, based on the type you choose, fix the rate at which the accrual should happen and the frequency at which the accrual will happen. Refer to the screenshot below for more details.
Balance Carryover - Balance Carryover in Freshteam comes with two options.
Remaining Count: The remaining Count will add all of the leaves left unused from the previous quarter/month/year to the following quarter/month/year.
Limit Count: Limit Count carries over the leaves unused within a limit you specify. That is, if your employee has 8 unused sick days but the limit allows only 6 days to be carried over, 2 sick leaves of his would not be carried over.
The maximum limit will be the maximum number of leaves allowed to be accrued by an employee in a particular time-off type.
Set the values as per your policy rule for each time-off type.
Click “Next” after you are done.
If you want to restrict certain actions for employees in applying timeoff like backdating, for example, you can do so with Freshteam's Request Rules section. You can also set a Waiting Period under Additional rules.
How to create a Time-off Policy - A Video: