📌 Overview: Leaves Settings define how employee leaves are accrued, carried forward, encashed, and used during payroll.
Path: Settings → Leaves → Edit
📝 Fields / Options
- Sandwich Rule (On/Off) — deducts non-working days between leaves as paid leave when On.
- Paid Leave During Probation (Yes/No)
- Paid Leave During Notice Period (Yes/No)
- Accrual Table — Yearly Quota + Method per leave type
- Carry Forward Table — Limit + Month per leave type
- Encashment Table — Limit + Trigger Event per leave type
- Opening Balance Import (button at the top, visible only before first salary or first import) — bulk import every employee’s starting leave balance.
⚙️ System Impact
- Sandwich Rule can be enabled only if you have selected Month Days as Salary Calculation Method in Salary Settings.
- Leave balance is visible in the Employee Portal.
- Payroll uses these settings to calculate Paid vs Unpaid leave.
- Direct effect on salary deductions.
- Rules apply system-wide once enabled.
⚠️ Note on Sandwich Rule & Salary Calculation
- The Sandwich Rule works only when Salary Calculation Method is set to Month Days.
- If you switch Salary Calculation to Working Days, the Sandwich Rule must be turned off from Leave Settings.
👉 In short:
- Month Days → Sandwich Rule can be enabled
- Working Days → Sandwich Rule must stay disabled
What changes when settings are saved
- Employee leave balances accrue per the new rules from the next cycle.
- Salary deductions for unpaid leaves use the updated rules.
- Existing approved leaves are not retroactively recalculated.
✅ Best Practices
- Define clear policies for probation & notice periods.
- Keep accrual & carry-forward aligned with company HR policy.
- Use the Sandwich Rule carefully (it affects all employees).
- Use the Opening Balance Import on day one — afterwards the button hides.