Step 2 - Accrual Settings

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Have you finished step one?

Before jumping into this article, if you haven't read Step 1 – Basic Information, we strongly recommend reading it first.


In this step, you’ll need to decide how this policy functions over time. We’ll walk you through how to choose your settings and determine the best setup for your policy.

Accrues vs Unlimited

Accruing Time Off Unlimited Time Off

This option means that employees assigned to this policy will accrue a certain amount of this type of time off over a set period of time.

If this is the case, select Accrues to set up an accrual schedule and continue with the steps below.

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Amount Accrued Per Year

Enter how many total days/hours of time off employees will be eligible for under this policy per year. This number is static and will be used to calculate your accrual schedule.

How come I see hours instead of days?

This field will shift depending on the settings chosen in the selected Time Off Type. Some policies may show hours while others may show days.


Seniority Increase

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If this policy includes a seniority increase, you can add it here.

  1. First, enter how many years must pass before the increase occurs.
    This must be a whole number. Eg. 1, 2, or 3 years.
  2. Then, enter how many total days/hours should be accrued under the employee’s yearly allowance, once they’re eligible for the increase.
  3. If there are multiple seniority increases available, you can add as many as you need by clicking + Add Level

Seniority Increases are always prorated

Seniority Increases are based on the employee’s hire date. When an employee is in a seniority increase year, the yearly balance will be prorated based on their hire date, regardless of your policy’s overall proration settings. It will also not factor in any interruptions to their employment, such as a leave of absence.

Want to avoid prorating seniority increases?

Some companies may want employees to get a non-prorated amount. This is especially common for policies with a seniority increase after each year. In this case, we recommend creating a new Time Off Policy for each increase.


Accrual Schedule

Next, you’ll need to decide how often employees will accrue this type of time off under this policy.

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Accrual Frequency

  1. Select the option from the dropdown menu that applies to this policy:
    • Daily
    • Weekly
    • Biweekly
    • Semi-monthly
    • Monthly
    • Quarterly
    • Annually
  2. Next, select when you’d like the accrual period to start. The options available will shift based on the accrual frequency chosen.
  3. Lastly, choose what day of the selected period you’d like the accrual to happen.
    • First Day of Period
    • Last Day of Period
    • First Day of Next Period


Prorating the First Accrual Amount

Choose whether you’d like to prorate the first accrual based on the employee’s accrual start date.

For example, if an employee is hired and starts in the middle of the period, and you choose not to prorate, the employee will get the full accrual amount for the entire period, despite having only worked for a part of it.

Yes, prorate. No, don't prorate.

If you select yes, Humi will prorate the first accrual based on the employee’s policy assignment date.

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Curious how Humi calculates this?

Humi prorates via the recommended method of the National Payroll Institute (NPI), (formerly the Canadian Payroll Association [CPA]), for Time Off and Payroll. Click here to learn more.


Accrual Schedule Preview

To help you understand what your schedule will be, Humi will generate a preview of what the settings you’ve chosen will look like for the next few accrual periods. You can use this table to preview your settings and ensure everything is configured correctly for your policy.

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Time Off Requests

Next, you’ll decide how employees can request time off for this policy.

Waiting Period

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This setting allows you to prevent newly hired employees from booking time off that would occur within a certain amount of time after their start date.

  • New employees will still be accruing time off during the waiting period; however, this field limits when they can start taking time off.
  • Admins & managers can still enter time off requests on behalf of the employee during the waiting period.
  • To ensure things keep running smoothly, employees subject to a waiting period will still be able to request time off that would occur after the waiting period has ended.


Borrowing Time Off

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This setting determines if employees are allowed to book more time off than they have available in the current accrual year, resulting in a lesser balance for the following year.

For example:

If you select No If you select Yes

If an employee has 10 days available each year, they can request up to 10 days off at any time during that accrual year.

If they haven't accrued the full 10 days yet, this will result in a negative balance that they are "paying back" until the current year's end.


Limit Request Length

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This setting allows you to decide how short or long a time off request can be. You can set both a minimum amount and a maximum amount per request.

  • Minimum Length is used to specify the smallest increment of time an employee can book on any day. For example: 0.5 days, 1 hour, 1 day, etc.
  • Maximum Total Length is used to specify the maximum days/hours a single request may have. For example: If you don't want your employees to consecutively be away for longer than one work week, you could put "5 days” in this field.


When you’re happy with your settings, click Next to move on to Step 3 - Carryover & Balance Cap.

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