Leave Type refers to the types of leaves allocated to an Employee which they can use while making Leave Applications.

Navigation : Home > HR Module > Leaves > Setup > Leave Type

1. Click on 'Leave Type” under [Leave] section and you will arrive at Leave Type Listing View
2. Click on '+ Add Leave Type” button on top right corner.
3. Give this Leave Type a name (Annual Leave etc.)
4. You can define the properties of this leave type. Click Save to create new Leave Type.

Properties	Description
Maximum Leave Allocation Allowed	The maximum leave that can be allocated to one employee
Applicable After (Working Days)	If this leave can only be taken by an employee after a working period (e.g., 3 months), insert the number of working days
Maximum Consecutive Leaves Allowed	The maximum limit of consecutive leave days an employee can take in one leave application
Is Carry Forward	Tick this if this leave can be carried forward to the next year. Ticking this will show the 'Carry Forward' section with related properties like 'Maximum Carry Forwarded Leaves' and 'Expire Carry Forwarded Leaves (Days)'
Is Leave Without Pay	Tick this if the leave is a type of unpaid leave. Ticking this will hide 'Is Partially Paid Leave'
Is Partially Paid Leave	Tick this if the leave is a partially paid leave. Checking this will show 'Fraction of Daily Salary per Leave' and hide 'Is Leave Without Pay'
Fraction of Daily Salary per Leave	Insert the percentage of the daily salary granted to the employee when the leave is taken. Note : For a day of leave taken, if you still pay (say) 50% of the daily salary, then enter 0.50 in this field.
Is Optional Leave	Tick this if this leave is optional for the employee to take
Allow Negative Balance	Tick this if you allow the employee to apply for this leave type even if there is no leave balance (approval is up to you)
Allow Over Allocation	Tick this if you allow the system to allocate more leaves than the number of days in the allocation period
Include holidays within leaves as leaves	Tick this if holidays within the taken leaves will count as leave
Is Compensatory	Tick this if the leave is a compensation leave. Employees can request this leave via 'Compensatory Leave Request'
Maximum Carry Forwarded Leaves	The maximum amount of leave that can be carried forward
Expire Carry Forwarded Leaves (Days)	The number of days after which carry forward leave will expire, and employees will not be able to use the expired leave
Allow Encashment	Tick this if the leave can be converted to cash when the employee departs. Ticking this will show 'Encashment Threshold Days' and 'Earning Component'
Encashment Threshold Days	The number of leave days that employees won't be able to encash. Any leave exceeding the threshold can only be encashed. Any amount less than the set threshold will be forfeited
Earning Component	Select the earning component that the encashed amount will flow into
Is Earned Leave	Tick this if the leave is earned by the employee on a pro-rata basis. Ticking this will show 'Earned Leave Frequency', 'Allocate on Day', and 'Rounding' Note : The initial allocation of this Leave Type will be 0. Leaves will be allocated to employee based on set leave frequency & allocate day.
Earned Leave Frequency	Select the interval at which this leave will be granted to the employee
Allocate on Day	Select the day on which the earned leave should be allocated to the employee
Rounding	The decimal point to which the leave will be rounded when allotting to the employee Note : For example, one Employee is allotted 16 Annual Leaves in a year, wherein the Annual Leave is set as Earned Leave with Monthly allotment. 0.25 This employee will earn 1.25 (16 leaves/12 months = 1.33 round down to 1.25) leaves 0.5 This employee will earn 1.5 (16 leaves/12 months = 1.33 round up to 1.5) leaves 1.0 This employee will earn 1 (16 leaves/12 months = 1.33 round down to 1.0) leaves