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How to Set Leave Type and Determine Leave Policy
How to Set Leave Type and Determine Leave Policy

【Leave Type】 is all leave types that employees can enjoy.【Leave Policy】is the rules of how the company gives the right of rest to staff.

Workstem CS avatar
Written by Workstem CS
Updated over a week ago

In short, 【Leave Type】 is all leave types that employees can enjoy. This is the first part to set well.

There are 10 built-in common leave types in the system: Work Injury Leave, Full Paid Sick Leave, Compensation Leave, Paternity Leave, Sick Leave, Maternity Leave, Marriage Leave, No Pay Leave, Annual Leave and Sick Leave (5/4 consecutive days).

Notice⚠️:whether leave type name is in Chinese or in English is decided by - 【Company】- Basic Information - Preset Data Language. If the Preset Data Language is Chinese, the leave type here should be in Chinese. If the Preset Data Language is English, the leave type here should be in English. You can adjust it based on your preference.

Company - Preset Data Language:

Preset Data Language in Chinese:

Preset Data Language in English:

If you need some leave types which are not in the system, you can add in by clicking 【+ Add】.

Operation Steps:

Click【+ Add】on the upper right hand corner > finish relevant settings in the page 【Add-Leave Type】> Click 【Save】

Relevant Settings Details:

  1. Name: self-defined name, to help you distinguish leave both in Chinese and in English

  2. Leave Code: English abbreviation, to help the system to mark this leave type

  3. Unit: decide this leave type is calculated by day or by hour

  4. Paid Leave: decide this leave type is paid leave or no pay leave. If it is paid leave, switch it on to blue; If it is no pay leave, switch it off to grey.

    Notice ⚠️: The settings here will influence payroll calculation result. If you set leave type as no pay leave, the system will deduct salary automatically after the employee applied for this leave type. If you also use our payroll function, please make sure all settings here are completely accurate.

  5. Applicable by Employees?: Switching it on to blue represents employees can apply for this leave type. Switching it off to grey represents this leave type can only be seen and operated by HR.

  6. Leave Balance Calculation Formula: There are 5 major calculation formulas

  • Unlimited Leave: the leave type without specific quota, such as no pay leave and work injury leave,etc.

  • One-time Leave: the leave type that the system will generate leave quota only for one time when the employee joined in the company (the leave quota will not be generated by month or by year automatically). This calculation method is applicable for leave types such as maternity leave, marriage leave, paternity leave, compensation leave, and Jury Duty Leave, etc.

  • Calculation Based on Length of Service: this calculation method supports leave types with leave quota increasing year by year, for example, the annual leave.

  • Fixed Yearly/Monthly Quota: it's applicable for company's extra welfare leave, such as paid sick leave, birthday leave, company anniversary, etc. There's a fixed quota for every month/year.

  • Lasted Sick Leave: it's only applicable for the calculation of sick leave (>= 4 consecutive days). The system set the leave policy with fixed quota and it cannot be edited manually.

Notice ⚠️

  • For detailed settings of special leave types such as sick leave, you can refer to Settings of Special Leave Types

  • Here is just for basic setting of leave type. As for leave quota generation, you need to make settings in Leave Policy

  • The 10 system built-in leave types may not match your practical need, you can make adjustment according to you company policy one by one.

After you added or adjusted all needed leave types, you can start Second step of Leave setting: Determine Leave Policy.

Must-Read for Leave Policy Setting

Simply put, leave policy is the rules of how the company gives the right of rest to staff. You can set different leave types for different employees with different leave entitlement in leave policy settings.

There's a built-in leave policy template in the system and you can edit it directly to save time. You can also create multiple leave policies. There are 5 steps of leave policy setting:

  1. Set Policy Name

  2. Set Working Days, Working Hours Per Day and Public Holidays

  3. Check Public Holidays

  4. Add Leave Type and Leave Application Settings

  5. Check Policy Overview and finish policy setting

It takes a lot of time to finish a set of policy settings. With that in mind, the system provides default setting in every step. It aims to help you finish the creation of a set of policy in a few minutes, and then come back to edit every detailed setting.

Detailed five-step explanation of Leave Policy Setting:

Step 1

Set Policy Name:It aims to help you distinguish different leave policies quickly when you have any sets of leave policies. Click [Add] on the upper right-hand corner, input [Policy Name] in pop-up page and press [OK].

Step 2

On page of Leave Management, set Working Days, Working Hours Per Day and Public Holidays. Click [Next] when you finish setting.

  • Working Days: It is to help the system identify working days and rest days when employees ask for leave and decide if there's a need to deduct leave balance

  • Working Hours Per Day: System usually calculates working hours according to standard 8 hours

  • Public Holidays: choose Hong Kong Public Holidays (If it is for non-Hong Kong area staff, you can choose other area's public holiday or self defined public holidays)

Step 3

Get in the page of checking Public Holidays, the system will generate list of public holidays this year. There will be marks for Statutory Holiday and Public Holiday. We suggest you use default setting when you create leave policy for the first time. Click [Next] on the upper right hand corner to finish policy setting, and then come back to this page to edit detailed changes.

Notice for Editing Content of This Page:

The system will update public holidays calendar according to Hong Kong laws and regulations automatically every year. If your company does not need some built-in holiday, you can just unselect the checkbox. Thus, the holiday is not valid any more.

If you need to add other holidays, you can press the button [+ New] at the bottom left. In the pop-up page of [New-Public Holidays], input Name, Type and Date, press [Save] to finish self-defined operation.

Your operation of adding and editing holidays is only valid in this year, you need to readjust and set next year again.

Step 4

After you finished setting for public holidays, click [Next] to get in the page of adding Leave Type. The system built-in template has added in 10 leave types. You just need to check them one by one and set the leave entitlement.

If it is a set of brand new leave policy, this page will be blank without data. You need to add leave type by yourself.

For how to add leave type and set leave entitlement, we prepared detailed description in the next article.

Step 5

This is the last page of adding leave policy- Policy Overview, helping you check basic setting of leave policy. Click [Finish] and a new leave policy will be created. You can also get back to previous steps to make changes by clicking [Previous].

Last Notice ⚠️: The leave policy will be created only after you clicked [finish] in step 5. You can go back to any page to make changes after it is created. If you do not click [Finish] or policy setting is interrupted for some reason, all established settings may disappear. So we strongly recommend you to quickly create a policy leave according to system default settings, and then get back every page to make detailed setting in stages based on the actual situation.

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