About the limitation rules in time off policies

This topic applies to our new time off system only.

Limitation rules allow you to automatically reset time off balances, set a maximum balance, cap accruals, or enable time off expiryThey can be added to default policies in time off types, or can be added to specific policies assigned to users.

Refer to the sections below for details on specific rule options.<

Select these links for information about the starting policy rules, accrual rules, and validation rules in time off policies.

If you have purchased an Enterprise-level product, we can work with you to create fully customized accrual rules. Contact your Customer Success Manager for more information.

Rule

Description

Bi-Weekly Reset

Monthly Reset

Quarterly Reset

Semi-Annual Reset

Semi-Monthly Reset

Weekly Reset

Yearly Reset

Automatically resets the policy’s balance to a specified value, on a defined schedule

Parameters

  • Reset On <Week, Month, Quarter>: Defines in which week, month, or quarter the reset should occur. The Yearly Reset rule includes an Anniversary Month
  • On Day Of Month: Defines the day the reset should occur on. Some rules include Anniversary Day and Last Day of Month
  • Reset Type: Determines whether the balance will be set to some defined value (Set To), or if their existing balance will be retained, but only up to the value specified (Carry Up To)
  • Reset Amount: The number of days or hours the balance is reset to, or carried up to

Example

If a user’s Vacation time expires at the end of the year, but they can carry over up to 5 days, you would set the parameters as follows:

  • Rule: Yearly Reset
  • Reset On Month: January
  • On Day Of Month: 1st
  • Reset Type: Carry Up To
  • Reset Amount: 40 hours

Then, if they have 50 Vacation hours remaining at the end of the year, they’ll only carry over 40 of those to their next balance.

Maximum balance rules

Automatically prevents any addition of time off beyond the defined cap.

Parameters

  • Maximum Balance: The maximum days or hours the balance can have. No additional time off can be added to this value, whether through accruals, resets, or manual additions.

Cap accruals rules

Automatically limits how much time off a user can accrue in a year

Parameters

  • Limit: The amount of time off the user is allowed to accrue in the defined year
  • Year Starts Month: The month when the validation year begins. The validation year can be the calendar year, a fiscal year, or be based on the user's anniversary.
  • Year Starts Day: The day of the month when the validation year begins

Example

A company might want to limit users to accruing up to 48 hours of sick time.

When would this rule be useful?

This rule is typically only used when time off accruals are based on hours worked or paid (e.g. worker accrues 1 hour of sick time per 30 hours worked).

Expiry rules

Automatically resets balance, and carries over and expires a specified amount

Parameters

  • Reset On Month: The month when the reset should occur. Includes an Anniversary Month.
  • On Day Of Month: The day when the reset should occur. Some rules include Anniversary Day and Last Day of Month.
  • Carry Up To: The maximum amount of time off a user can carry over past the reset. if their existing balance will be retained, but only up to the value specified.
  • Expires After: The number of days, weeks, or months the carried over amount will be valid after the reset date
  • Units: The unit for the expiry amount – Days, Weeks, or Months
  • Upon Expiry: Whether the user is paid the value of the expired time off – Pay out and Do not pay out. Pay out is only supported for time off types that track time off in hours.

Example

You set a carry over up to 5 days Vacation days that occurs on January 1st, and expires in 3 months with Pay out set. If the user has 6 Vacation days at the end of the year, that will reset to 5 days as of January 1st. This carried over amount will be available for them to use up until and including March 31st. If they don’t use any of the time by April 1st, they’ll be paid for the value of that time (5 hours x their hourly pay rate).

Note

Expiry occurs on the last day of the expiry period.

Consider enabling the Reminder of upcoming time off expiry notification to users assigned this rule.

FAQs

Can a reset and an accrual occur on the same day?

Yes. If an accrual and a reset are scheduled for the same day, the reset occurs first, and then the accrual.

You might need to set up a policy like this if, for example, time off accrues monthly on the first of the month, and resets annually on January 1st.

Do resets and accruals occur on a policy's effective date?

If a reset or accrual is scheduled for the same day as the policy’s effective date, the reset and accrual will both still occur. First the initial balance is set and then the reset and accrual occur.