HRStop's Leave Management System enables organizations to automate the leave accrual process based on custom eligibility rules. These rules determine who is entitled to a particular leave type and how much leave they can receive over time.
This article walks you through everything you need to know to configure, manage, and update leave entitlement rules tailored to your company policies.
What Are Leave Entitlement Rules?
Leave Entitlement Rules define the eligibility criteria and credit frequency for different types of leaves. These rules ensure that only the qualified employees receive the appropriate number of leaves, which are credited automatically.
Only employees who meet the eligibility criteria defined in the rule will be able to view or apply for that leave type.
Navigation Path
Go to: Control Panel → Leaves → Entitlement
How to Add a New Leave Entitlement Rule
To define a new rule, follow these steps:
1. Open Entitlement Module
Navigate to: Control Panel → Leaves → Entitlement
Click on “Add New Entitlement Rule”.
2. Configure Eligibility Criteria
You can set rules based on one or more of the following filters:
| Criteria | Description |
|---|---|
| Category | Leave category (e.g., Sick, Casual, Earned, Maternity) |
| Department | e.g., Sales, HR, Engineering |
| Designation | e.g., Manager, Developer, Intern |
| Employment Type | e.g., Full-Time, Part-Time, Contractual |
| Entity | Useful for multi-location or multi-brand setups |
| Gender | If the leave applies to a specific gender |
| Band | Employee's level/grade within the organization |
| Marital Status | If the rule applies only to married/unmarried employees |
Tip: You can leave a field blank if you don’t want to apply a restriction on that parameter.
3. Enable Experience-Based Eligibility (Optional)
- Check the box “Entitle leave based on experience level”.
- Specify the minimum number of experience months or years required.
Example: Only employees with 6+ months of experience are eligible for Earned Leave.
4. Set Leave Accrual Limits
- Leave Count (per annum): Total number of leaves allowed in a year.
- Maximum Leave Cap (Optional): Restricts the maximum number of leaves an employee can hold in their balance.
E.g., If you assign 12 annual leaves but cap at 18, an employee will stop receiving credits after accumulating 18 unused leaves.
5. Select Credit Frequency
Choose how often the leave should be credited:
| Option | Description |
|---|---|
| Monthly | Credits every month (e.g., 1 leave/month) |
| Quarterly | Every 3 months |
| Semi-Annual | Twice a year |
| Once | One-time allocation |
Click “Show Credit Plan” to preview monthly leave credits based on the selected frequency.
6. Configure Pro-Rata for New Joiners (Optional)
To assign partial leaves to new joiners:
- Check “Prorate leaves for new joiners”
-
Enter:
- Number of days of attendance required before entitlement
- Percentage of leave applicable
Example: If someone joins on the 20th of the month and works for 5 days, they might be entitled to only 50% of the month’s leave.
7. Save the Rule
Click on “Save”.
The rule will now appear in the Existing Leave Entitlement Rules section.
Example Use Case
Use Case:
You want to assign 12 Earned Leaves per year (1 per month) to full-time employees in the Engineering department, but only if they have completed 6 months in the organization.
Configuration:
- Category: Earned Leave
- Department: Engineering
- Employment Type: Full-Time
- Experience-Based Eligibility: Yes (6 months)
- Leave Count: 12
- Credit Frequency: Monthly
- Maximum Leave: 18
- Pro-Rata: Enabled for new joiners (10 days attendance = 50% entitlement)
How to Edit/Update an Existing Rule
You can update existing entitlement rules if business policies change.
Steps:
- Navigate to Control Panel → Leaves → Entitlement
- Scroll to Existing Leave Entitlement Rules
- Click Edit under the rule you wish to modify
- The form above will auto-populate
- Make changes and click Update
Note:
Changes take effect from the next accrual cycle. They do not impact the current leave balance of employees.
How Leave Accrual Works
- Leave credit is automated as per the entitlement rules.
- Credits are processed on the first day of each cycle (e.g., 1st of every month).
- Pro-Rated logic ensures fair entitlement for mid-month joiners.
Important Notes
- A leave type is visible to an employee only if they meet the eligibility criteria.
- Need-Based Leave types have no upper limit, so max leave cannot be defined for them.
- Only Super Admins and designated HR Admins can manage entitlement rules.