How Do I Create and Configure Leave Policies?

Leave policies define the rules for each leave type — quota, approval, rollover, accruals, and more. They're set per Location, so different offices or regions can have different rules.

What is a Leave Policy?

A leave policy is a set of rules that governs a specific leave type (like Vacation, Sick Day, or Working from Home) at a specific Location. It controls everything from how many days employees get per year, to whether they need approval, to how unused days roll over.

Each Location can have its own set of leave policies, so your office in London can follow different rules than your team in New York. And within each Location, every leave type gets its own policy — your Vacation policy might have 20 days with approval required, while your Sick Day policy has 10 days with no approval needed.

How to Create a Leave Policy

1. Sign in at app.vacationtracker.io.
2. In the left-hand menu, expand Leave Setup and click Locations.

1. Find the Location you want to configure and click Edit Leave Policies on that Location's card.

1. On the Leave Policies tab, you'll see a table of any existing policies with their Status, Leave Type Name, Yearly Leave Quota, Approval Required, and Shortest Leave Duration columns.
2. Click Assign Leave Policy in the top-left corner.
3. Select a leave type from the drop-down (e.g., Vacation, Sick Day) and click Assign.

1. Choose how to start:
   • From scratch — select "Don't Copy, I'll Start a New Policy"
   • Copy existing — reuse settings from another Location and adjust as needed
2. You'll now see the policy settings form. Configure each one, then click Update.

   Not sure what a setting does? Click any setting below for details.

   Approval Required

   When turned on, leave requests need manager approval before they take effect. When off, requests are auto-approved.

   Allow Negative Balance

   Lets Users request leave even after using their full quota.

   Amy used all 20 PTO days but needs one more day off. With this on, she can still submit. Her manager still approves if Approval Required is enabled.

   Unlimited Quota

   Removes any cap on days/hours for this leave type. Great for types like Working from Home. When enabled, the Yearly Leave Quota field is hidden. Approval rules still apply.

Additional Policy Settings

Below the core settings on the same page, you'll find three more sections. These are optional but powerful — they control how leave is earned, how unused leave is handled at year-end, and whether employees can bank overtime as extra time off. Each one has its own dedicated guide: