Leave Setup
Go to: HR → Setup → Leave Setup
Leave Setup defines what kinds of leave exist and how much leave policies grant. Day-to-day leave work (allocation, applications) lives under Leave.
1. Leave Type
Go to: HR → Setup → Leave Setup → Leave Type
A Leave Type is one category of leave — Annual, Sick, Casual, Unpaid, and so on — plus the rules for how it works.
| Field / option | What it means |
|---|---|
| Name | Display name of the leave |
| Max Consecutive Leaves | Longest streak allowed in one go |
| Accrual | Leave builds over time (default style) |
| Earned Leave | Leave credited on a schedule (monthly/quarterly/etc.) |
| Carry Forward | Unused days roll into the next period (with optional max / expiry) |
| Encashment | Unused balance can be paid out (needs a salary earning component) |
| Is Leave Without Pay | Unpaid leave flag |
Status: Draft → Approved → Cancelled
Accrual and Earned Leave are mutually exclusive. Turn on only one model per leave type. For encashment, link a salary earning component.
Create the leave type
Go to Leave Type → New, enter the name and rules, then Save.
Approve
Approve the leave type so policies and applications can use it.
2. Leave Policy
Go to: HR → Setup → Leave Setup → Leave Policy
A Leave Policy bundles one or more leave types with annual allocations (for example: Annual 14, Sick 10, Casual 8).
| Field | What it means |
|---|---|
| Name | Policy name (e.g. Standard Staff Policy) |
| Lines | Leave Type + Annual Allocation days |
Status: Draft → Approved → Inactive
When you later approve a Leave Policy Assignment for an employee, the system creates Leave Allocations from this policy.
After Leave Setup
- Ensure General Setup → HR Period is current.
- Go to Leave to:
- Assign policies to employees (single or bulk)
- Review / adjust allocations
- Process leave applications
Holiday Lists are under General Setup, not Leave Setup. Assign the correct holiday list on each employee so attendance and leave stay aligned.