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 “Create New Policy” tab.  

  • 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. 

  • 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, follow the below steps to create your time-off policy. 

1. Choose Time-off Types

Apart from the standard time-off types provided by your country’s time-off policy, you can also create your own time-off types. To do this, 

  • Select the “+ Time off Type” button under the others section. 

  • You will see a drop-down with all the types you have created. 

  • You can also add a new type by clicking “+ Create New”.

  • You will see the below pop-up, fill the necessary details and click Save to save the time-off type.

  • Click “Next” after you are done.


2. Holiday and Workweek

  • Choose the appropriate Holiday Calendar from the drop-down. 

  • Select your Work Week from the drop-down.

  • Click “Next” after you are done.

3.  Policy Rules

  • Choose the Start Date of your Policy Period, it can be your regular calendar year (January - December) or you can choose any month of your choice and Freshteam will set the period to a year from the selected time. 

  • Choose the start date of the time-off cycle. This will be the date on or after which the policy becomes applicable to all employees.

  • Define Accrual Frequency and Balance Carryover 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).

Balance Carryover  -  Balance Carryover in Freshteam comes with two options. 

  • Remaining Count: 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. 

  • 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.

4. Map Teams to the Policy 

  • Map different teams to different time off policies as you need. 

  • Select the teams/groups required from the list available in the drop-down. 

Note: If you want to make the current time-off policy the default policy, enable the toggle “Mark this time off policy as default “ available in the right side on the “Map Teams to Policy” page.

Once you are done selecting the teams/groups to be mapped, click “Save”  to successfully save the time-off policy created. 

Creating a Custom Time-off Policy

To create your own time-off Policy, you can choose “Create Custom Policy”  in the "Time-off Policy” tab instead of using the template. The steps following that are similar as mentioned above. 

How to create a Time-off Policy - A Video: