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Implementing Sample Leave Policy

This guide walks through setting up IceHrm's leave management system, assuming a mid-year transition with carryover leaves and varying employee start dates.

Assumptions​

For this example, we assume:

  • Implementation begins mid-2022 leave period
  • Some employees have unused 2021 leaves that need to be carried forward
  • Annual leave carries forward; casual leave does not
  • Casual leaves accrue at 1.5 days monthly (18 days annually)
  • New hires receive proportionate entitlements based on join date

Step 1: Create Leave Periods​

Create leave periods starting from your implementation year. The system allows flexible period lengths beginning any month.

Leave Periods

How to Create​

  1. Go to Admin > Leave Settings > Leave Periods

  2. Click Add New

  3. Configure the period:

FieldValue
Name2022 Leave Period
Start DateJanuary 1, 2022
End DateDecember 31, 2022
  1. Click Save
Previous Year Balances

You don't need to recreate prior years manually. Instead, use PTO (Paid Time Off) to document carryover balances from your previous system.

Step 2: Create Leave Types​

Annual Leave (with Carry Forward)​

Create an annual leave type that allows unused leave to carry forward to the next period.

Annual Leave Type

SettingValue
NameAnnual Leave
Days Per Year20
Carry ForwardEnabled
Carry Forward Percentage100%

Annual Leave Carry Forward

With 100% carry forward, all unused annual leave rolls into the next period (subject to any maximum limit you set).

Casual Leave (with Accrual, No Carry Forward)​

Create a casual leave type that accrues monthly and does not carry forward.

Casual Leave Type

SettingValue
NameCasual Leave
Days Per Year18
Accrual EnabledYes
Accrual Rate1.5 days per month
Carry ForwardDisabled

Casual Leave Accrual

With accrual enabled, employees earn 1.5 days of casual leave each month (18 days ÷ 12 months = 1.5 days/month).

Step 3: Verify Employee Leave Entitlement​

After configuring leave types, the system automatically calculates entitlements for each employee.

Employee Entitlement

Example Calculation​

For an employee during the initial setup period (January 1 to February 10, 2022):

Leave TypeAccrued
Casual Leave3 days

This is calculated as: 1.5 days × 2 months (January + partial February) ≈ 3 days

Step 4: Import Previous Year Balances Using PTO​

Use the Paid Time Off (PTO) module to import balances from your previous system.

PTO Module

How to Add PTO​

  1. Go to Manage > Leave > Paid Time Off

  2. Click Add New

  3. Add entries for each employee:

ScenarioPTO Value
Unused 2021 leave to carry forwardPositive amount (e.g., +5 days)
Leave already taken in current yearNegative amount (e.g., -3 days)

PTO Entry

Example​

Employee: John Smith
Unused 2021 Annual Leave: 5 days
Already taken in 2022: 2 days

PTO Entries:
1. +5 days (2021 carryover)
2. -2 days (2022 leave taken before migration)

Step 5: Configure Proportionate Leave for New Hires​

Enable proportionate leave calculation so new employees receive entitlements based on their join date.

Proportionate Settings

How to Enable​

  1. Edit the leave type

  2. Enable "Proportionate leaves on Joined date"

  3. Save

Proportionate Configuration

Calculation Example​

Employee joins: July 1, 2022
Annual Entitlement: 20 days
Months remaining: 6 (July - December)

Proportionate = 20 × (6 ÷ 12) = 10 days

Step 6: Use Employee Leave Period (Optional)​

If you want leave balances to reset on each employee's work anniversary instead of the calendar year, enable Employee Leave Period.

Employee Leave Period

How to Enable​

  1. Go to System > Settings

  2. Find "Use Employee Leave Period"

  3. Set to Yes

Employee Leave Period Setting

How It Works​

SettingLeave Reset Date
DisabledJanuary 1 (calendar year)
EnabledEmployee's hire anniversary

Example: An employee who joined on March 15 would have their leave reset on March 15 each year instead of January 1.

Summary​

StepAction
1Create leave periods starting from current year
2Create leave types with appropriate carry forward and accrual settings
3Verify employee entitlements are calculated correctly
4Use PTO to import previous year balances
5Enable proportionate leave for new hire calculations
6Optionally enable Employee Leave Period for anniversary-based resets

Quick Reference​

TaskLocation
Create leave periodsAdmin > Leave Settings > Leave Periods
Create leave typesAdmin > Leave Settings > Leave Types
Add PTO entriesManage > Leave > Paid Time Off
Enable proportionate leaveEdit leave type settings
Enable employee leave periodSystem > Settings