TalentHR supports accrual policies for time off, allowing the Admin and all HR Managers of your portal to automate your employees' time off accrual and add carryover and cap-on balances based on your specific policies. 

• You can create multiple accrual policies. 
• An accrual policy applies to a specific type of time off, e.g. Vacation.
• You can configure an accrual policy to allow unlimited days off for your selected type of time off. Time off requests will still need to be submitted and approved. 
• A time off accrual policy can be applied to all of your employees. Alternatively, you can create policies for the employees who belong to specific locations, divisions, departments, job titles and/or employment statuses. Finally, you can create unique accrual policies tailored to specific employees.
• All of the above can also be combined within one policy. 
• If a policy allows unlimited days of time off, employees who belong to that policy can take leave for the time off type specified by the policy, without any time being deducted from their time off balance. 
• If an accrual policy doesn’t allow unlimited days off, you’ll need to define a schedule of accruals for that policy, so that employees who belong to the policy will automatically accrue time off based on the scheduled rules.
• You’re able to add multiple time off accrual “schedules” to follow the first accrual, within the same time off policy. After the first “schedule”, upcoming accruals are called milestones. 
• When “milestones” are applied to a policy, each accrual/milestone starts when the previous accrual/milestone ends.

To create your first time off accrual policy:

1. Go to Settings and select Time off (1). 

2. Click on the Policies tab (2). Here you will also be able to find and edit or delete all of your already created policies in the future.

3. Click Add policy (3). 

4. Type a name for your new policy and choose which time off type it will apply to from the drop-down (4), e.g. Vacation, Sick Leave, etc.

5. Enable the Unlimited days off option (5), to allow an unlimited number of days off for the selected type of time off, for the employees that this policy will apply to. Alternatively, leave this option disabled. 

Schedule

If you’ve disabled the Unlimited days off option, you’ll need to set the rules (Schedule) by which employees will accrue time off. Otherwise, you can move on to the Applied to section. 

Here are the relevant accrual fields under Schedule:

• Employee accrues (1)
  Define the amount of time off the employee will accrue over a specified period.
  Example: Employee accrues 1 day Monthly on the First day of the month.
  
  
• Start date (2)
  Define the start date of the accrual period, relative to the available options.
  The options are: Hire date, Other date, After hire date.
  Example: 3 Months After hire date.
  
  
• End date (3)
  The date that the accrual period ends.
  The options are: Other date, After start date, No end date (The accrual period keeps on forever).
  Example: 5 Years After start date.
  
  
• Carry Over Balance (4)
  Specify whether any unused time off balance can be carried over to the next time off cycle.
  The options are: Yes, No.
  When this option is set to “Yes” the balance can be carried over to the upcoming time off cycles forever, or until a specified date during the next time off cycle.
  Example: Yes, Carry until March 10.
  
  
• Cap On Balance (5)
  Limit the maximum number of days an employee can accrue.
  The options are: Yes, No.
  If “Yes” is selected, a limit must be specified.
  If an employee has reached the defined cap, the employee won’t accrue any more days.
  If the employee's accrual balance falls below the cap limit (due to an approved leave), accruals will continue until the employee’s accrual balance reaches the cap again.
  Example: Yes, Stop accruing when employee reaches 7 days.
  
  
• Add milestone (6)
  Optionally create one or more follow-up “schedules” of accrual for your policy, to start when the initial scheduled accrual ends.

Applied to

Select All employees (1) if you wish your time off policy to apply to everyone. Otherwise, disable this option and specify which employees will benefit from this policy. 

You can include one or more locations, divisions, departments, job titles and/or employment statuses, as well as specific employees that the policy will apply to (2). These options can be combined as well. 

Let’s create an example policy:

• In this example, the employees that belong to this policy accrue 0.5 days Monthly for the first 2 years since their hire date, until their accrual balance reaches the 5 days cap limit. 
• The balance that gets accrued is available for use until March 4 of the next time off cycle.

• Milestone: The employee will accrue 1 day off weekly, starting from their third year of employment, until the end of their sixth year of employment.
  The accrual balance is available to use forever, starting from the employee’s third year of seniority.

The use case:

• An employee with a hire date of January 1, 2024 and an initial time off cycle of January 1, 2024 to December 31, 2024.
• Current time off cycle: Jan 1, 2025 to December 31, 2025.
• On Jan 2, 2025 (i.e. today), the employee has accrued 5 additional days because of the cap limit (if there was no cap limit, the employee should have accrued 13 days).
• If the employee requests 3 days off, from February 3, 2025 to February 5, 2025, the days will be deducted from the accrual balance, because it’s available until March 4, 2025 (carry until March 4), from the previous time off cycle.
• If the employee requests 3 days from June 3, 2025 to June 5, 2025 (a period that comes after the “carry until” date of March 4), then:
  1 day will be deducted from the accrual balance (because the employee has accrued 1 day only for the current time off cycle), and the rest of the days will be deducted from their regular balance.
• Milestone: Due to the milestone applied to this policy, the employee will accrue 1 day off every week, beginning from their third year of seniority, until the end of their sixth year. The accrual balance is available to use forever, starting from the employee’s third year of employment.