Leave Management

Create and edit leave policies

Set up each leave type: how days are earned, allowances by employment status or years of service, carry-forward, request limits and half-day rules.

  • HR Admin
  • Payroll Admin
3 min read
On this page (6 sections)
  1. Create a leave policy
  2. Entitlement and accrual
  3. Request rules
  4. Edit a policy
  5. Validation messages
  6. Frequently asked questions

Create a leave policy

Go to
  1. Payroll
  2. Payroll Settings
  3. Leave Policies

  1. Click New Policy. You need payroll create permission.

  2. Enter the Policy Name (for example “Casual Leave”) and an optional Short Code of up to 10 characters (for example “CL”). If you leave the code blank, it’s made from the name.

  3. If you have several branches, choose the branches this policy applies to — or leave Branch empty for all branches.

  4. Set up Entitlement & accrual and Request rules as described below.

  5. Click Create Policy. The policy is active straight away and appears in the leave type list for employees in its branches.

Entitlement and accrual

How days are earnedBehaviour
Accrues over timeThe annual allowance is split across the year — Monthly (÷12), Quarterly (÷4) or Half-Yearly (÷2).
Granted upfrontThe full annual allowance is credited at the start of the leave year.
No accrualNothing is credited automatically. Set balances in Manage Employee Leaves.

Example: Accrues over time, Monthly, with an annual allowance of 18 days is set up to earn 1.5 days a month. The drawer previews this as “Works out to Earns 1.5 days per month · capped at 18/year”.

Annual allowance is
Same for everyone, By employment status (separate days for Trainee, Probationer and Confirmed) or By years of service (slabs).
Frequency
Monthly, Quarterly or Half-Yearly — for policies that accrue over time.
Credited at
Whether each period’s days are credited at the beginning or end of the cycle.
Accrue from
Date of Joining. (Date of Confirmation currently behaves the same as Date of Joining.)

Allowance by years of service

Add a slab for each band of service with From (years), To (years) (blank means no upper limit) and Annual days. Slabs can’t touch: use 0–2 and then 2.1–5, not 0–2 and 2–5.

Request rules

Max days per request
Blank means no limit.
Max requests per month
Counts requests of this type starting in the same month, including rejected ones. Blank means no limit.
Minimum notice (days)
How many days ahead employees must apply. Up to 255; blank means no notice needed.
Approval mode
Leave this as Manager approval. Requests go to the employee’s reporting manager, and Super Admins can also decide them.
SwitchWhen on
Carry forward unused balanceUnused days roll into the next leave year. When off, they lapse at year end.
Allow negative balanceEmployees can request more days than they have available.
Allow half-day requestsEmployees can request half days (on by default).
Count holidays as leave takenHolidays inside the requested dates are charged as leave.
Count weekly offs as leave takenWeek offs inside the requested dates are charged as leave.

Edit a policy

Click the pencil on the policy card, make your changes and click Save Changes. You need payroll update permission.

Validation messages

MessageFix
“Policy name is required.”Enter a name.
“Minimum notice can be at most 255.”Use a smaller notice period.
“Add at least one experience slab.”Add a slab, or switch the allowance to Same for everyone.
“Experience slabs cannot overlap.”Make each slab’s To lower than the next slab’s From.

Frequently asked questions

Choose Accrues over time, Frequency Monthly and an annual allowance of 18 days.

Not from this screen. With carry forward on, the whole remaining balance carries into the next leave year.

Related articles

Create and edit leave policies | Mocha HRMS Help Center