Leaves, Comp-Offs & Encashment

Manage the full leave lifecycle - from configuring leave types and assigning policies to processing applications, awarding comp-offs, and handling encashments.

Prerequisites

Before configuring leaves, ensure the following are in place from Core HR:

✅ Active employees with departments and locations assigned
✅ Location holiday calendars configured (determines working days for leave calculations)

👤 Role-Based Access

Action	SUPER_ADMIN / HR_ADMIN	Manager	EMPLOYEE
Create leave types	✅	❌	❌
Create / assign leave policies	✅	❌	❌
Manually adjust balances	✅	❌	❌
Grant comp-off credits	✅	❌	❌
Apply for leave	✅	✅	✅
Approve / reject leave	✅	✅ (direct reports)	❌
View team leave balances	✅	✅ (direct reports)	❌
Request encashment	✅	✅	✅

Admin Workflow

Step 1 - Create Leave Types

Leave types define the rules for each category of time off.

Navigate to: Leave Settings → Leave Types → Add Leave Type

Field	Description	Example
Name	Display name	`Earned Leave`
Code	Unique identifier	`EL`
Category	`PAID` or `UNPAID`	`PAID`
Unit	`DAYS` or `HOURS`	`DAYS`
Entitlement Method	`FIXED` (full balance upfront) or `ACCRUAL` (earned periodically)	`ACCRUAL`
Default Entitlement	Base days per year	`15`
Allow Half Day	Enables half-day bookings	✅
Reset Policy	`LEAVE_YEAR_END` or `ANNIVERSARY`	`LEAVE_YEAR_END`
Overflow Action	`LAPSES`, `CARRY_FORWARD`, or `PAY_OUT`	`CARRY_FORWARD`
Max Carry Forward Days	Cap on rolled-over days	`5`
Carry Forward Expiry Months	Months before carry-forward lapses	`3`
Applicable Gender	`MALE`, `FEMALE`, or leave blank for all	(blank)
Encashment Enabled	Allow leave encashment	✅
Max Encashment Days	Annual encashment limit	`10`
Min Balance for Encashment	Minimum balance to retain after encashment	`5`

Step 2 - Create Leave Policies

A leave policy bundles multiple leave types and is then assigned to groups of employees.

Navigate to: Leave Settings → Leave Policies → Add Policy

Give the policy a descriptive name (e.g. Standard Full-Time Policy)
Add leave types from your list to the policy
Save the policy

Step 3 - Assign Policies to Employees

Navigate to: Leave Settings → Leave Policies → select policy → Assign Employees

Search for employees by name or department
Select multiple employees and click Assign

Step 4 - Manual Balance Adjustments

HR can grant or deduct days at any time (e.g. performance bonuses, corrections).

Navigate to: Leave Settings → Balance Adjustments → Add Adjustment

Field	Value
Employee	Select the target employee
Leave Type	Select the relevant leave type
Adjustment	Positive number to add; negative to deduct
Reason	Document the reason (e.g. `Performance bonus days`)

The balance updates immediately and is visible to the employee.

Step 5 - Grant Comp-Off Credits

For employees who work on weekends or public holidays:

Navigate to: Leave Settings → Comp-Offs → Grant Comp-Off

Field	Description
Employee	Who worked the extra day
Worked On Date	The specific weekend/holiday date
Days	Number of comp-off days to credit
Valid Until	Expiry date for the credit
Reason	e.g. `Worked on Republic Day`

Employees will see their comp-off credit in their leave balance view.

Employee Workflow

Checking Your Leave Balance

Navigate to: Leaves → My Balances

Your balance card shows:

Opening: Starting balance at year start
Accrued: Days earned so far (for accrual-type leaves)
Carry Forward: Days rolled from last year
Used: Days already taken
Available: What you can still apply for

Applying for Leave

Navigate to: Leaves → Apply for Leave

Select Leave Type from your eligible types
Choose Start Date and End Date using the calendar
Toggle Half Day if you only need a morning or afternoon
Enter a Reason
Click Submit

Automatic system checks (before submission):

Check	What it verifies
Working-Day Calculator	Maps your dates against location calendar; weekends and holidays are excluded automatically
Gender Guard	Blocks leave types that don’t apply to your gender
Balance Guard	Rejects the request if your available balance is insufficient

Tracking Your Leave Status

After submission, your leave appears in My Leaves with one of these statuses:

Status	Meaning
`PENDING`	Awaiting approver action
`APPROVED`	Leave granted; balance deducted
`REJECTED`	Declined with reason
`CANCELLED`	Cancelled by you or HR

Cancelling a Leave

Navigate to: My Leaves → click the leave → Cancel

You can cancel a PENDING or APPROVED leave
If the leave was already APPROVED, cancellation automatically restores the deducted days to your balance

Requesting Encashment

If your leave type allows encashment:

Navigate to: Leaves → Encashment → Request Encashment

Validation	Rule
Encashment enabled	Leave type must have encashment turned on
Max days	Request cannot exceed `maxEncashmentDays`
Minimum balance	You must retain at least `minBalanceForEncashment` days after encashment

Finance processes the payout under Finance Tools → Encashment Approvals.

Automated Background Jobs

The system runs these jobs automatically - no manual action required:

Job	Frequency	What it does
Leave Accrual	Monthly	Credits periodic accrual days (e.g. 1.25/month) to ACCRUAL-type leave balances
Year-End Rollover	Start of leave year	Calculates carry-forward (capped at `maxCarryForwardDays`), lapses the rest, and initialises new year balances
Carry-Forward Expiry	Periodic	Lapses carry-forward days that have exceeded `carryForwardExpiryMonths`

Common Troubleshooting

Problem	Solution
Employee can’t apply - “no policy assigned”	Assign a leave policy to the employee
Leave rejected due to gender restriction	The leave type has a gender restriction; choose a different type
Carry-forward days disappeared	They may have exceeded the expiry period defined in the leave type
Half-day option not available	The leave type must have `allowHalfDay` enabled
Encashment request blocked	Check minimum balance requirement and max encashment limit

← Core HR Employees and locations must exist before configuring leaves.

Attendance → Set up attendance shifts and policies alongside leave setup.