The Time Off feature helps you manage everything related to employee leave in a way that is accessible and transparent to employees and managers. When creating Limited Time Off Policies - meaning policies where the amount of time off employees receive or accrue each year is limited, the accrual settings can be Fixed or Hourly. These settings need to be set when creating the policy. Let's go over the differences below.
Limited Fixed Policies
With a limited fixed policy, employees earn a set amount of time off per year, in hours or days depending on the policy units. For example, an employee might earn 80 hours per year. You choose how that amount is granted through the accrual cycle.
To set up a fixed policy, you need to define:
Beginning of the Year: Calendar year, a custom date, or the employee’s anniversary.
Accrual Cycle: All at once, weekly, every 2 weeks, every 4 weeks, monthly, or twice a month.
Amount Earned: The amount employees earn per cycle. For example, 8 hours per cycle on a monthly cycle equals 96 hours per year.
Employees Assigned Mid-Cycle: Prorate, grant the full amount, or grant nothing until the next cycle.
To learn more about cycles, make sure to check out this article.
Limited Hourly Policies
With a limited hourly policy, employees earn time off based on the hours they work. For example, for every 40 hours worked, an employee might earn 8 hours of time off.
Hourly policies include these settings:
Accrual Cycle: Immediately once the worked hours threshold is met, or periodically (weekly, every 2 weeks, every 4 weeks, monthly, or twice a month).
Rate: Enter it as time earned per hour worked, or as hours worked per time earned.
Paid Breaks: Choose whether paid manual breaks count toward accrual.
Other Time Off: Choose which time off policies count as worked hours.
Standard Hours for Salaried Employees: Available on periodic cycles, so salaried employees accrue based on standard hours.
Yearly Accrual Limit: Stops accrual once an employee reaches a yearly amount (Advanced plan and above).
Example: A custom beginning of the year of May 15 resets limits and carry over each May 15.
Accrual Based on Tenure
On the Advanced plan and above, you can have employees earn more as they stay longer. Select Based on tenure in the amount section and add rules by months of service. To learn more, make sure to check out this article.
Accrual Preview
For fixed and periodic hourly policies, the Accrual Preview shows when and how much employees will accrue. The preview does not reflect tenure levels.
FAQs
Can I Change a Policy From Fixed to Hourly?
Select the accrual type when creating the policy. Check with support before changing it on a policy that already has accrual history.
What Happens If I Assign an Employee Mid-Cycle?
On Fixed policies, the Employees Assigned Mid-Cycle setting decides whether they get a prorated amount, the full amount, or nothing until the next cycle.
Plan Availability
**Limited policies: Basic and above (up to 6 limited policies on Basic, 9 on Advanced, unlimited on Expert).**
**Yearly accrual limit, carry over limit and tenure accrual: Advanced and above.**
**Accrual waiting period: Expert.**
Additional Resources
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