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Understanding Accrued Leave and Building an Accrued Leave Policy in Hour Timesheet

What Accrued Leave Means

Accrued leave is a type of paid time off that employees accumulate based on a fixed schedule or entitlement, rather than hours worked. Unlike earned leave, accrued leave typically accrues on a calendar basis, such as monthly or yearly, and may be granted as a fixed amount per period.

Accrued leave policies are common in organizations where:

  • Leave entitlement is based on tenure or contract terms.
  • Leave accrual is predictable and consistent.
  • Compliance requires fixed accrual schedules.

Hour Timesheet supports accrued leave configurations that allow administrators to set fixed accrual amounts, accrual intervals, and carryover rules to meet organizational policies.

Key Components of an Accrued Leave Policy

An accrued leave policy generally includes these elements:

1. When the Leave Rule Becomes Effective

This defines when the employee starts accruing leave. Options include:

  • From Hire Date — Accruals begin immediately.
  • After a Waiting Period — Accruals start after a specified duration.

2. How Leave Is Accrued

This sets the fixed amount of leave granted per accrual period. For example:

  • Accrue 8 hours of leave per month.
  • Accrue 96 hours of leave per year.

3. Accrual Frequency

Defines how often leave is accrued, such as:

  • Monthly
  • Quarterly
  • Yearly

4. Carryover Rules

Similar to earned leave, carryover rules specify what happens to unused leave at the end of an accrual cycle:

  • Carryover frequency and date.
  • Limits on carryover amounts or unlimited carryover.

5. Maximum Balance Limits

Sets the maximum leave balance an employee can hold at any time.

How to Build an Accrued Leave Policy in Hour Timesheet

Follow these steps to configure accrued leave:

Step 1: Set the Effective Date

Choose when the leave rule starts, either from hire date or after a waiting period.

Step 2: Define Accrual Amount and Frequency

Enter the fixed leave amount and select the accrual interval (monthly, quarterly, yearly).

Example: Accrue 8 hours per month.

Step 3: Configure Carryover Rules

Set carryover frequency and date, then specify limits or unlimited carryover.

Step 4: Set Maximum Balance Limits

Choose whether to cap the total leave balance or allow unlimited accumulation.

Step 5: Save and Assign the Policy

Assign the policy to employees or groups once configured.

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