Leave policies are not universal. Even when two organizations use the same leave name, the underlying rules can differ significantly depending on local regulations, internal policies, and employment models.
This overview focuses on how different leave types can be configured, rather than prescribing a single best-practice setup.
The same leave category can be managed in multiple ways — fixed, accrued, manual, or informational — depending on what you need to track and control.
Core dimensions of leave configuration
Most leave types can be configured around the same set of decisions:
what units are used (days/hours),
whether the entitlement is fixed or accrued, undefined or unlimited,
when the cycle resets, whether it is based on the calendar year, the fiscal year, or the employee’s hire date anniversary
whether balances reset annually or carry-over and expiry apply,
whether negative balances are allowed,
and what information/documentation rules apply.
These mechanics matter more than the label itself - the same label may represent different rules across countries.
Vacation / Annual Leave
Common names include annual leave, vacation leave, holiday leave, statutory leave, earned leave, or paid time off (PTO).
Undefined or Unlimited policy
Vacation is not limited by a fixed entitlement, but requests are still submitted, approved, and visible in calendars and reports.
How to configure
How to configure
Go to Configuration → Absence types and create or edit the absence type
In Accrual tab, in the Entitlement field, select Unlimited or Undefined
Optionally, in the Requesting tab, limit how far in advance requests can be submitted (e.g,. current and next absence year or only current absence year)
Fixed yearly entitlement with an annual reset (e.g., 20 days per year)
Employees receive a fixed number of vacation days per year, with the balance resetting at the start of each absence year.
How to configure
How to configure
Set Fixed yearly entitlement (e.g. 20 or 26 days)
- Go to Configuration → Absence types and create or edit the absence type
- In Accrual tab, in the Entitlement field, select Accrued and define accrual rule.
- Add the number of days, and decide whether the full entitlement is available immediately or adjusted via pro-rating
- In Carry-over tab, define the absence year start date (calendar year or custom fiscal year like April 1st or July 1st)
Make sure that carry over is disabled
- In the Carry-over tab, leave the checkbox unticked to ensure employees cannot transfer unused balances to the following year.
Accrual model, optionally with accrual caps
Vacation is earned gradually over time instead of being granted upfront.
How to configure
How to configure
Enable Accrual-based entitlement
- Go to Configuration → Absence types and create or edit the absence type
- In Accrual tab, in the Entitlement field, select Accrued and define accrual rule
- Decide whether employees should be able to use only the balance that has already been accrued (calculate as of current day), or whether they can also plan future time off based on estimated upcoming accruals (estimate future entitlement).
- Select accrue period (monthly, weekly or even daily), add the number of days, and decide whether the full entitlement is available immediately or adjusted via pro-rating
- Define the accrual rate (e.g. 1.67 days per month)
In Carry-over tab, enable a carry over without a cap
In Accrual tab, optionally set an accrual cap to limit the maximum balance that can be accumulated
When the cap is set (e.g. 20 days), employees continue to accrue time off according to the defined accrual rules. However, once their balance reaches the cap, further accruals are paused.
Accrual will resume again only after the employee uses some of their balance and drops below the cap.
This is a common policy used to encourage employees to take time off regularly, instead of accumulating large unused balances.
Pro-rating for mid-year starters and leavers
Vacation entitlement is automatically adjusted based on the employee’s start or end date.
In Calamari, proration is always applied to the accrual period, which means it can work not only for yearly entitlements, but also for monthly or other accrual cycles.
How to configure
How to configure
Proration applies only to:
the first accrual (when an employee joins), and
the last accrual (when a termination date is set in the employee profile)
You need to consider three factors:
1. When accrual starts
You can decide how the first accrual is handled:
The day when gains eligibility - start accruing on the employee’s start date (typical for annual rules)
In period when gains eligibility - include the employee in the current accrual cycle (e.g. end of the month) (this is especially useful for monthly accrual setups).
In next period after gains eligibility - start accrual from the next cycle (this is especially useful for monthly accrual setups).
2. How the entitlement is prorated
You can choose how the system calculates the proportional entitlement:
Based on days
Example: employee hired on January 5 with 20 days/year
360/365 × 20 = 19.73 daysBased on full months
11/12 × 20 = 18.33 daysBased on partial months (counting started months as full)
12/12 × 20 = 20 days
3. Rounding rules
After proration is calculated, you can define how the final value is rounded:
Do not round result - no rounding (exact values)
Round to whole - standard mathematical rounding to whole
Round to whole (always up) - always round up to full days
Round result to a half - standard mathematical rounding to half days
