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How to Create and Manage Leave Types

Creating and Managing Leave Types

Written by Myo Zaw Hein
Updated over a week ago

You can create custom leave types in Better HR to match your company’s leave policies. Below are step-by-step instructions:


Step 1 — Create a New Leave Type

  1. Go to Settings.

  2. Select the Leave tab.

  3. You will see some preset leave types already in the system.

  4. To create a new one, click + Create Custom Leave.

  5. A pop-up box will appear — fill in:

    • Leave Type Name

    • Description

  6. Click Create to save.


Step 2 — Configure Leave Type in Policies

  1. Go to Settings > Policies.

  2. Choose the policy where you want to assign the leave type.

  3. In that policy, go to the Leave tab.

  4. Scroll down and select the leave type you’ve just created.

  5. A leave type configuration box will open.


Step 3 — Setup Leave Type Details

Eligibility

  • Choose from two options:

    • Eligible from: select starting eligibility based on:

      • Service length (1st to 31st day/month/year).

    • Specific eligibility date: define eligibility based on a custom date.

Leave Balance Generation Schedule

  • Immediately: employee receives full leave balance right away.

  • Scheduled: define earning frequency (monthly/yearly) and balance amount.

  • Advanced Scheduled: assign prorated leave for each of the 12 months.

Leave Generation Cycle

  • Choose how the leave cycle is calculated:

    • Gregorian Calendar

    • Employee Joining Date

    • Custom Date

Allow Days

  • Days Available: define how many days of leave employees receive.

  • Maximum Days: set maximum leave if rollover is allowed.

Mobile Restrictions & Leave Behavior

  • Half-Day Enable: allow half-day leaves (morning or evening).

  • Include Day Off and Public Holiday as Leave: if toggled, these dates count toward leave days.

  • Rollover Remaining Leave: allow remaining leave to carry over into next cycle.

  • Document Attachment Required: require employees to attach documents for this leave type.

  • Days in Advance Required for Submission: set how many days in advance leave must be requested.

  • Gender: restrict to specific gender if applicable (e.g. maternity leave, paternity leave).

  • Maximum Leave Days in Single Request: limit the maximum leave length per request.

  • Minimum Leave Days in a Single Request: This limits the minimum number of days required for a single leave submission.

  • Can Submit Up to Past Days: If you want to allow employees to submit backdated requests, click this option and specify how many past days are permitted for the application.

Configure Advanced Settings

  1. Select Advanced Setting: From the dropdown menu under "Days in advanced required for submission setting," choose Advanced Setting.

  2. Define Conditions: You can specify ranges for leave duration and the corresponding notice period required.

    • Example: Requests for 1 to 2 days of leave require 1 day of advanced notice.

    • Example: Requests for 3 to 4 days of leave require 2 days of advanced notice.

  3. Add More Rules: Click the + Add Condition button to create additional tiers as needed for your policy.

  4. Remove Rules: Use the trash icon next to a condition if you need to delete a specific rule.

Payroll Related Settings

  • Define as Unpaid Type: toggle if this is unpaid leave.

  • Unpaid Leave Multiplier: define multiplier for salary deduction.

Entitlement (Extra Days for Service Years)

  • Extra Days for Service Year: add additional leave based on employee experience.

  • Or toggle: Don’t give extra day for service year if not applicable.


Step 4 — Activate and Save

  • After all configurations are done:

    • Toggle to Activate Leave Type.

    • Click Confirm.

    • Finally, click Update Policy to save changes.


Now your leave type is fully created and assigned to the selected policy.

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