Before you start

To configure time off policies 

Step 1 - Set up policy details

1. Enter the Policy Name.
2. Choose an applicable Time Off Type.
3. In Zoho Shifts, we offer you four different policy types. You can choose one of the following policy types based on your requirements:
1. To provide unlimited leave entitlements for an employee during a policy year, choose the Unlimited policy type.
2. To provide leave entitlements manually, choose the Manual policy type. 
3. To set accrual and entitlement rules at a fixed rate and intervals, you can choose the Fixed policy type. 
4. To provide leave entitlements based on employees’ worked hours, choose the Based on hours worked policy type.
4. Choose a Policy Start Date. You can set the policy year to start on a Custom date or the employee’s Hire date. If the policy year is the same for all employees, select a custom date and specify the start date. If you want entitlements to vary based on each employee’s joining date, select the hire date as the policy start date.
5. Click Next.

Step 2 - Define accrual rates

Accrual rates and settings cannot be configured for the Unlimited and Manual policy types.

Accrual rates determine how employees earn time off hours. This setup varies based on the policy type.

1. Fixed policy type:
1. Set the accrual rate and frequency for time off hours. This specifies how many hours an employee will accrue and how often they will accrue them.
2. Choose whether accruals should be credited at the Start or End of the period.
2. Based on hours worked policy type: 
1. Enter the Accrual Rate and choose how it’s measured—by hours or percentage. This rule affects how many time off hours an employee will accrue when you finalize a pay period.
2. To round accrued hours, select a direction of rounding.
   

Step 3 - Configure accrual settings

1. Set the maximum annual accrued hours. Once this limit is reached, no additional hours will be accrued. For example, if you limit annual accrual to 100 hours, an employee cannot earn more than 100 hours in a year.
2. Set the maximum balance hours to cap an employee’s total time-off balance, including both accrued and carried-over hours. This limit overrides the above set standard accrual rule.
3. Specify the waiting period (in days) after which a new employee begins accruing time off.
4. Allow carryover of unused time off balances at the end of the policy year, and add the following:
1. If you prefer that employees do not carry over negative balances, you can choose to skip carryover for negative balances.
2. Restrict the number of hours that can be carried forward in a policy year.
3. Expire unused carried-over hours after a specific number of days.
5. Define different accrual rates for employees based on their Tenure of employment. To add a new tenure, click +Add tenure bonus.
6. Click Next.

Step 4 - Configure balance limits

Balance limits cannot be configured for an Unlimited policy type.

1. Set the maximum negative balance an employee can reach when requesting time off beyond their available hours.
2. Allow employees to create time off requests for the upcoming policy year even though their balances are negative. 
3. Click Next.
   

Step 5 - Manage request behavior

1. Set the waiting period in days before new employees can request time off.
2. Enable auto-approval to approve time off requests instantly.
3. Set the minimum number of hours an employee can request time off.
4. Set the number of days in advance that employees need to submit a time-off request.
5. Click Save.