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Time off Policies

Accessible to administrators

Updated over a week ago

With KiwiHR, we aim to make managing your time off policies easier without over-simplifying the complexities of each different one. To do so, we created a form to take you slowly through all the necessary steps to create the best policies to assign to your company and your employees depending on their contracts. You can create as many time off types as you want and attribute them to any number to any number of time off policies.

1. First, if you want to create a different type of policy than the four default ones, you can create one in Settings > Configuration > Time off > Time off types.

2. Then, to create the rules for a Time-off policy, go to Settings > Configuration > Time off > Time off rules.

When you first arrive on the time-off policy page, the page is empty.

Create new policy

1. When you want to define your first time-off policy, click Create first policy.

2. Give the policy a name and click Add.

Each time-off policy can contain any number of rules to fit the needs of your employees.

Time off rules

3. To start the process, click on + Add time off rule

Select which Time off policy you would like to create between Vacation, Sick leave, Remote working, Parental leave or any of the custom time off types you created. Once you select your time off type, click Next step on the right side.

  • Vacation: When employees take time off for holiday.

  • Sick leave: When employees feel unwell to work.

  • Compensatory: When employees worked overtime.

  • Remote: When employees are working outside of their usual working spaces.

📌 All time off type have the same number of options, except for Compensatory which has an overtime balance instead of an allowance.

Once you have defined a policy, a summary with key information appears next to it.

Basic configuration

1. Allocation method

With the drop down menu you can choose between:

  • Accrual: Entitlement is granted according to accrual rules (e.g. paid leave)

  • Unlimited: Employees can take an unlimited number of days (e.g. sick leave)

⚠️ If you select Accrual instead of Unlimited, the settings Usage period and Accrual frequency appear on your screen.

2. Allowance (only for Compensatory)

Allowance is not provided by default but earned by the employee with overtime. It’s a setting only available for Compensatory.

3. Accrual period

Select the Accrual period, from January to December, from June to May, or create a custom one.

The accumulation period defines the reference period for the acquisition of entitlement. With the drop-down menu, you can choose between:

  • January - December: The entitlement’s renewal is on 1st of January of each year.

  • June - May: The entitlement’s renewal is on the 1st of June of each year.

  • Custom: The entitlement’s renewal is on the 1st of the selected month.

4. Usage period

The usage period defines the period during which the accumulated entitlement can be used. With the drop down menu you can choose between:

  • In the current accumulation period: The entitlement accumulated in period N can be used in the same period (ie. the employee can only use the allowance accrued during one year during the same year).

  • In the next accumulation period: The entitlement accumulated in period N is usable in period N+1 (ie. the employee can only use the allowance accrued one year in the next).

  • In the current and the next accumulation period: The entitlement accumulated in period N is usable in period N and N+1 (ie. the employee can use the allowance accrued during the same year and the following year too).

5. Accrual frequency

The accrual frequency defines when the entitlement is granted.

  • Start of accumulation year: Annual entitlements are granted at the beginning of the accumulation period.

  • End of month: Monthly entitlements are granted at the end of the month

6. Affects timesheets

Tick the box for time off to be reflected on time sheets.

When you check the box, time off requests are included in calculating an employee’s work hours balance on the relevant period of time, for example during Vacation time or Sick leave when no time tracking is expected.

When you leave the box unchecked, no time is added to the hours worked for any given day. For example, when an employee works Remotely, this status does not affect their attendance.

7. Deduction mode

The deduction mode defines the days deducted when requesting an absence. You can select between:

  • Based on work schedule

  • Monday to Friday (working days)

  • Monday to Saturday (working days)

  • Monday to Sunday

Ie. If your employee takes a week's leave, they must select Monday to Saturday in their usage period. In this case, 6 days are deducted.

⚠️ When you save a rule, you cannot amend any part of the Basic configuration as it can create contradictions within the system. If you want to change any part of it, you need to create a new rule from scratch.

Once you have made a choice in each category, click Next step on the top right corner.


8. Accrual allowance

If you selected Accrual in the Allocation method drop down menu, select the number of days accrued per period.

9. Auto approval

Tick the box to authorize time off requests automatically without requiring the approval of a manager or human resources.

📌 It is possible to change the Allowance usage settings once the time off rule is in use.

10. Weekly limit

Click the toggle to set a weekly limit for certain time off requests. A weekly limit automatically resets on a Monday regardless of when the employee's work week starts.

Select a weekly limit from 1 to 6 days per week with the drop down menu.

Once you have made your selection, click Next step at the top right.

Unused allowance

11. Carry over

Carryover defines whether unused days in the usage period are lost or whether they can be used in the next period.

  • Employees cannot carry over unused days

  • Employees can carry over unused days

12. Carry over limit

If you select Employees can carry over unused days, you need to type the limit of days employees can carry over.

13. Expiration

Click the toggle to allow carry over days to not expire or to expire.

14. Expiration date

If you click the toggle, you need to set an expiry date for carried over days.

It won't be possible to change unused allowance settings later when the rule is in use. If you wish to change unused allowance configuration, you need to configure

this time off rule from scratch.


15. Policy name

Change the name of the policy

16. Delete

With this option you can choose to have no time off rules at all and to not give the option for employees to request time off.

When a time off rule is disabled, all previously recorded time off requests of this type are marked as archived. Pending time off requests are automatically canceled.

All employees assigned to the time off rule are automatically unenrolled from it

⚠️ This action cannot be undone.

Save your policy

Once you have finished, click Save changes at the top.

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