This article is for HR admins. It covers how to set up leave types and policies, configure accrual and carry forward, build approval chains, and maintain holiday calendars. Employees applying for leave should read Leaves.
For a product overview, see Leave Management.
1. Create leave types
- Go to Leave → Policies and click Add Leave Type.
- Give it a name and short code, for example Casual Leave (CL), Sick Leave (SL), Earned Leave (EL).
- Mark whether it is paid or unpaid. Unpaid leave is treated as loss of pay in payroll.
- Set who is eligible: all employees, or only certain locations, employment types, or genders (for maternity and paternity leave).
2. Configure quotas and accrual
- Set the annual quota, for example 12 days of Casual Leave.
- Choose how it is credited: all at once at the start of the year, monthly, or quarterly. Example: 15 days of Earned Leave credited at 1.25 days per month.
- Set a waiting period for new joiners if needed, for example Earned Leave starts accruing after probation.
- Decide whether new joiners get a prorated quota based on their date of joining.
3. Set year-end rules
- Carry forward: set the maximum days that move to next year, for example up to 30 days of Earned Leave.
- Encashment: decide whether unused days can be encashed and how many. Encashed days can flow to payroll.
- Lapse: anything above the carry-forward limit lapses at year-end.
4. Add request rules
- Minimum notice, for example Earned Leave must be applied seven days in advance.
- Maximum days per request.
- Whether half-days and backdated requests are allowed.
- Whether weekly offs and holidays between leave days are counted (sandwich rule).
- Whether a document is required, for example a medical certificate for sick leave beyond two days.
5. Build approval chains
- Open Leave → Approval Workflows.
- The default is a single step: the reporting manager.
- Add levels where needed, for example manager, then HR for requests longer than five days.
- Set a backup approver and an auto-escalation if a request stays pending too long.
6. Maintain holiday calendars
- Go to Leave → Holiday Calendar and add the year's holidays.
- Create separate calendars for different states or locations, since regional holidays vary.
- Mark optional or restricted holidays and set how many an employee may pick.
- Assign each calendar to the right location.
Common questions
Can I change a policy in the middle of the year?
Yes. Changes apply from the date you save them. Past credits and approved leave are not changed.
How do I adjust one employee's balance?
Open their leave balance and add a manual credit or debit with a reason. The adjustment is logged.
Can managers see their team's leave?
Yes. Managers see a team calendar and pending requests for their direct reports.
Related articles
Leaves
The employee side: applying, balances, and cancelling.
Roles & Permissions
Who can approve and edit leave.
Payroll
How LOP and encashment flow into salary.
Still stuck? Email support@qrewhr.com (Monday–Friday, 9:30 AM–6:00 PM IST) and our team will help you out.