In this article, we’ll guide you step-by-step on how to create a Leave Type in the system.
Creating a leave type is important before you fully use the leave module, as it forms the base to define the types of leave available in your company.
Steps to Create a Leave Type
1. Access Leave Type Settings
From the side navigation panel, click Leave.
Select Leave Type.
2. Create a New Leave Type
Click +Leave Type.
Enter the Leave Type Name and Description.
Example: Annual Leave as the name.
3. Set Leave Scheme Details
Fill in the Scheme Name and Description.
Select the Company/Companies assigned to this scheme.
4. Define Scheme Entitlement
Enter the Basic Number of Entitlement Days.
Add Subsequent Entitlement for increments over time by clicking the +Add Entitlement.
Example: Basic = 12 days. After 1 year = 13 days.
5. Configure Scheme Settings
Tick the relevant options:
Include Non-Working Days
Example: Employee working days are Monday to Friday. Leave applied from Friday to Monday deducts 4 days (Fri–Mon) instead of 2, as weekends are included.
Enable Proration
Proration Scenario: Incomplete period, Change of scheme, or Both.
Incomplete Period: Applies when an employee joins or leaves the company partway through the year.
Change of Scheme: Applies when there’s a change in the assigned leave type scheme (e.g. from Scheme A to Scheme B).
Both: Applies when both of the above conditions occur.
Prorate By: Days or Months.
Rounding By: Round down, off, or up.
Rounding To: Nearest whole or half number.
Upload Proof: Require documents (e.g., medical certificate). Add proof labels and set them as mandatory if needed.
Reason Input: Request employees to provide a reason. Add multiple labels and mark as mandatory if necessary.
Unpaid: Enable if this leave type is unpaid and deducts from payroll.
6. End-of-Period Settings
Choose what happens to unused leave at year-end:
Forfeit
Carry Forward (with expiration period)
Encashment
For employee offboarding, choose whether unused leave is Forfeited or Encashed.
7. Save the Leave Type
Click Create to save.
To create an additional scheme under the same leave type, click the + icon and repeat the steps.
Great job! You’ve successfully created a Leave Type.
👉 Proceed to the next guide: Assigning Leave Type to Employees.
Still exploring? Head over to our Help Centre for more in-depth guides and FAQs.
If you have any questions, feel free to reach out to us at support@gutsyhq.com. We'll get back to you from there.