Leaves Overview
Smooth HR Leaves manages time-off from first policy design through employee self-service requests, manager approvals, balance tracking, and payroll integration. A well-configured leave system reduces HR inbox traffic, keeps managers informed, and ensures payroll receives accurate payment-day counts.
Table of Contents
- What the Leaves module does
- The leave lifecycle
- Navigating the Leaves module
- Phase 1: Policy & calendar setup
- Phase 2: Allocation
- Phase 3: Employee requests
- Phase 4: Approval & attendance sync
- Phase 5: Encashment & year-end
- Key records
- Reports
- HR Settings for leaves
- Tips
- Troubleshooting
- Related guides
What the Leaves module does
| Capability | Description |
|---|---|
| Leave types | Paid, unpaid, sick, casual, earned — configurable rules |
| Policies | Bundle types with annual entitlements |
| Allocations | Credit leave balances to employees |
| Applications | Request, approve, or reject time off |
| Holiday calendars | Company holidays excluded from leave days |
| Block lists | Prevent leave during blackout periods |
| Encashment | Pay out unused leave via payroll |
| Balance reports | Real-time visibility for HR and managers |
The Leaves workspace home shows number cards: employees on leave today, this month, and holidays in the current month — giving HR an at-a-glance operational view.
The leave lifecycle
Configure types & policies → Assign policy → Allocate balances → Employee applies → Approve → Attendance updated → Payroll uses payment days
Annual rhythm:
- Fiscal year start: Create or roll Leave Period; run Leave Policy Assignment and Leave Allocation (or use Leave Control Panel for bulk).
- Ongoing: Employees submit Leave Application; managers approve.
- Each pay cycle: Payroll reads approved leave and attendance to compute payment days.
- Year-end: Process Leave Encashment for eligible balances; carry forward or lapse per policy.
Navigating the Leaves module
Open Leaves from the Smooth HR sidebar:
| Sidebar item | record | Desk path |
|---|---|---|
| Home | Leaves workspace | /app/leaves |
| Leave Application | Leave Application | /app/leave-application |
| Leave Encashment | Leave Encashment | /app/leave-encashment |
| Leave Control Panel | Leave Control Panel | /app/leave-control-panel |
| Leave Policy Assignment | Leave Policy Assignment | /app/leave-policy-assignment |
| Leave Allocation | Leave Allocation | /app/leave-allocation |
| Holiday List | Holiday List | /app/holiday-list |
| Holiday List Assignment | Holiday List Assignment | /app/holiday-list-assignment |
| Leave Period | Leave Period | /app/leave-period |
| Leave Policy | Leave Policy | /app/leave-policy |
| Leave Block List | Leave Block List | /app/leave-block-list |
| Leave Type | Leave Type | /app/leave-type |
| Settings | HR Settings (Leaves tab) | /app/hr-settings |
Reports:
| Report | Purpose |
|---|---|
| Employee Leave Balance | Per-employee balance by leave type |
| Employee Leave Balance Summary | Aggregated balances |
| Employees working on a holiday | Who worked when others had a holiday |
Phase 1: Policy & calendar setup
Leave Type
Create each category of leave at /app/leave-type:
| Field | Purpose |
|---|---|
| Leave Type Name | Display name (e.g., Casual Leave) |
| Max Leaves Allowed | Cap per allocation period |
| Applicable After (Working Days) | Waiting period for new hires |
| Maximum Consecutive Leaves Allowed | Single-request cap |
| Is Carry Forward | Unused balance rolls to next period |
| Is Leave Without Pay | Unpaid — affects payroll payment days |
| Include Holiday | Count holidays within leave span |
| Is Optional Leave | Employee-chosen holidays |
Leave Policy
Bundle leave types with entitlements in Leave Policy (/app/leave-policy). Each row specifies leave type and Annual Allocation. See Leave Policy guide.
Holiday List
Define company holidays at /app/holiday-list, then assign to employees or company via Holiday List Assignment. Holidays reduce working days but are not deducted from leave balance when configured correctly.
Leave Period
Define the active window (e.g., calendar year) at /app/leave-period. Allocations and applications validate against open periods.
Leave Block List
Blackout dates (year-end close, peak season) at /app/leave-block-list — optionally assigned by department.
Phase 2: Allocation
Employees need a positive balance before applying (unless your policy allows negative/LWP):
| Method | record | When to use |
|---|---|---|
| Policy assignment | Leave Policy Assignment | Auto-entitlement from policy |
| Manual allocation | Leave Allocation | One-off or correction |
| Bulk tool | Leave Control Panel | Mass allocate or assign policy |
Leave Policy Assignment (/app/leave-policy-assignment) links employee + policy + effective date. Smooth HR can generate allocations from the policy.
Leave Allocation (/app/leave-allocation) directly credits New Leaves Allocated for a leave type and period. Must be Submitted to affect balance.
Phase 3: Employee requests
Employees create Leave Application (/app/leave-application):
- Select Leave Type, From Date, To Date (and Half Day if applicable).
- System shows Leave Balance Before Application and computed Total Leave Days.
- Submit for approval workflow.
Employees with the Employee role can create applications for themselves via desk or mobile. HR can create on behalf of employees.
Phase 4: Approval & attendance sync
On Approval of a Leave Application:
- Leave balance is reduced by Total Leave Days.
- Attendance records can be auto-marked On Leave for the date range (based on HR Settings).
- Payroll uses leave data when computing payment days (if payroll is leave-based or for LWP).
Managers approve from the application list, email notification link, or Workflow if configured.
Compensatory Leave Request (/app/compensatory-leave-request) allows crediting comp-off for working on holidays — approve then allocate comp leave.
Phase 5: Encashment & year-end
Leave Encashment (/app/leave-encashment) converts unused leave to pay:
- Select employee and leave type with encashable balance.
- Specify days to encash — creates Additional Salary for payroll.
- Submit — balance reduced, payment processed in next payroll run.
At year-end, review Employee Leave Balance Summary, lapse non-carried balances via allocation adjustment, and plan encashments before period close.
Key records
| Record | Purpose |
|---|---|
| Leave Type | Category rules |
| Leave Policy | Entitlement bundle |
| Leave Policy Assignment | Employee ↔ policy link |
| Leave Allocation | Balance credit |
| Leave Application | Time-off request |
| Leave Encashment | Cash out unused leave |
| Holiday List | Company holidays |
| Leave Block List | Blackout dates |
| Leave Control Panel | Bulk operations |
Reports
| Report | Use case |
|---|---|
| Employee Leave Balance | HR audit — who has how much leave left |
| Employee Leave Balance Summary | Management dashboard export |
| Employees working on a holiday | Compliance and comp-off tracking |
Filter by department, employee, and leave type. Export to Excel for workforce planning.
HR Settings for leaves
Open HR Settings → Leaves tab (/app/hr-settings):
| Setting | Effect |
|---|---|
| Send Leave Notification | Email on submit/approve |
| Leave Approval Notification Template | Customize email content |
| Show leaves of all departments | Manager visibility scope |
| Auto attendance on leave approval | Mark attendance On Leave automatically |
| Leave status notification | Notify employee on approve/reject |
Configure Leave Approver on the Employee record (Reports to or explicit approver field).
Tips
- Assign Holiday List before allocations — incorrect holidays inflate/deflate leave day counts.
- Use Leave Policy for consistency — avoid manual allocations except corrections.
- Train managers on mobile approval — reduces bottlenecks before payroll cutoff.
- Separate LWP types — clearly mark unpaid leave for payroll impact.
- Run balance report monthly — catch drift between policy and actual balances early.
- Use Leave Block List for known blackout periods instead of rejecting ad hoc.
Troubleshooting
| Issue | What to do |
|---|---|
| Insufficient leave balance | Check Leave Allocation submitted; verify policy assignment effective date |
| Cannot apply for leave | Confirm Leave Period is open; check block list and max consecutive rules |
| Leave days count includes/excludes holidays wrongly | Review Include Holiday on Leave Type and holiday list assignment |
| Attendance not marked On Leave | Enable auto attendance in HR Settings; re-approve or manually mark |
| Balance wrong after encashment | Verify encashment submitted; check for duplicate allocations |
| New hire cannot apply | Check Applicable After working days on Leave Type; allocate pro-rata if needed |
| Payroll payment days wrong | Ensure leave is Approved before payroll run; check LWP flag |
Related guides
Last updated: May 2026