SOURCE: Vacation Tracker TITLE: How Do I Create and Configure Leave Policies? URL: https://vacationtracker.io/knowledge-base/how-do-i-create-and-configure-leave-policies/ LANG: en PUBLISHED: 2020-12-29 UPDATED: 2026-09-10 READING: 5 min SUMMARY: How Do I Create and Configure Leave Policies? # How Do I Create and Configure Leave Policies? # 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. ### Watch the tutorial A short walkthrough of creating and configuring a leave policy: ## 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. Think of a leave policy as the rulebook for one specific type of time off at one specific office. The policy answers: how many days, who approves, what's the minimum duration, and what happens to unused days at year-end. Important Make sure your Leave Types are already created before setting up policies. See: How Can I Create and Configure Leave Types? (#) ## How to Create a Leave Policy - Sign in at app.vacationtracker.io (https://app.vacationtracker.io/signin). - In the left-hand menu, expand Leave Setup and click Locations. ![Sidebar showing Leave Setup expanded with Locations, Leave Types, and Leave Policies menu items](https://cms.vacationtracker.io/uploads/helpdesk_artikal_how_do_i_create_and_configure_leave_policies_first_image_place_6268866c7e.png) - Find the Location you want to configure and click Edit Leave Policies on that Location's card. Tip You can also click Edit on a Location card to open its settings, then select the Leave Policies tab at the top of the page. ![Location card showing Edit and Edit Leave Policies links](https://cms.vacationtracker.io/uploads/helpdesk_artikal_how_do_i_create_and_configure_leave_policies_second_image_place_626cc4a515.png) - 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. - Click Assign Leave Policy in the top-left corner. - Select a leave type from the drop-down (e.g., Vacation, Sick Day) and click Assign. ![Assign Leave Policy drop-down](https://cms.vacationtracker.io/uploads/helpdesk_artikal_how_do_i_create_and_configure_leave_policies_third_image_place_a7b3dfd885.png) - Choose how to start using the Copy Policy From drop-down at the top of the form: From scratch — leave it on "Don't Copy, I'll Start a New Policy" Copy existing — pick another Location or leave type to use as a template, then adjust as needed - Configure the core policy settings. These appear just below the Copy Policy From field — set each one to match how this leave type should work at this Location. 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. Yearly Leave Quota The total days or hours each User gets per year. Use the up/down arrows or type a number directly. The unit (Days or Hours) is shown next to the field. This is the base quota — individual Users can be adjusted separately under Customize Leave Quotas (#). Shortest Leave Duration The minimum leave a User can request, selected from a drop-down. Available on both plans, but anything shorter than a half-day is only available with the Complete plan (down to 15-minute increments). Oscar has a dentist appointment and only needs 2 hours off. On the Complete plan, he can request exactly that. Reason Required Users must write a reason when submitting a request for this leave type. Useful when managers need context before approving. Edit & Request Leaves In The Past Allows Users to submit or modify leave for dates that have already passed. Ron forgot to log a sick day last week — he can still add it. Anna returned early from vacation and can shorten her leave after the fact. Hide Leave Type Hides the leave type name from other Users. Colleagues only see that someone is away, not why. Jack is on medical leave, but his team only sees he's out — not the reason. - Set up the optional sections. Below the core settings, the form includes three more sections — Accruals, Brought Forward, and Time Off In Lieu. Configure any that apply to this policy, or leave them at their defaults. Each has its own guide — see Additional Policy Settings below. - Click Update to save. Your new policy appears in the Leave Policies table for this Location and applies to everyone based there. Tip If you need to discard your changes at any point, click Cancel next to the Update button to return to the Leave Policies list without saving. ## 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: ### Accruals Complete By default, employees get their full yearly quota upfront. Accruals let you distribute it gradually — monthly, biweekly, or weekly — so employees earn leave as they work. You can also set an accrual cap to prevent balances from growing too large. Set up Accruals (https://vacationtracker.io/knowledge-base/how-do-i-set-accruals/) ### Brought Forward (Rollover) Controls what happens to unused leave at year-end. You can let it all carry over, cap the rollover at a specific amount, or reset balances to zero. You can also set an expiry date for rolled-over days and decide whether negative balances carry forward. Configure Rollover (https://vacationtracker.io/knowledge-base/how-do-i-set-a-brought-forward-rollover-policy/) ### Time Off In Lieu (TOIL) Complete Lets employees earn extra leave in exchange for overtime or additional hours worked. Instead of overtime pay, they get equivalent time off added to their balance. You control who can request it and when it expires. Enable TOIL (https://vacationtracker.io/knowledge-base/how-do-i-enable-configure-toil/) ### What's Next? How Do I Set Half-Day Intervals? (https://vacationtracker.io/knowledge-base/how-do-i-set-half-day-intervals/) How Do I Make Adding a Reason Mandatory for a Leave Type? (https://vacationtracker.io/knowledge-base/how-to-make-adding-a-reason-mandatory-for-a-leave-type/) How Do I Hide a Requested Leave Type Name? (https://vacationtracker.io/knowledge-base/how-do-i-hide-a-requested-leave-type-name/) How Can Users Request a Past Leave? (https://vacationtracker.io/knowledge-base/how-can-users-request-a-past-leave/) Need help? Contact our Support team via email (mailto:hello@vacationtracker.io) or chat (#), Monday to Friday, 9 AM – 5 PM EST.