hcm

Time-off policies

PROFESSIONALEstimated read: 9 min· Updated 2026-08-30

Time-off policies

ProfessionalAdmin

/hcm/settings/time-off is the HR-admin surface for time-off policies — the accrual methods, caps, waiting periods, carry-over rules, and the regulated-leave trackers (FMLA / CFRA / NY-PFL / MA-PFML) that run automatically beneath them. Six accrual methods support most workforces; tenure tiers extend allowances for long-tenured employees.

TL;DR — Open HCM → Settings → Time-off. Create a policy per (PTO, sick, sabbatical, parental, etc.). Pick the accrual method + cap + waiting period + carry-over rule. Assign per benefits class. Regulated-leave trackers run automatically when qualifying events are recorded.

Before you start

  • Decide your policy taxonomy — PTO, sick, personal, sabbatical, parental, bereavement, jury-duty, etc. (Some workspaces consolidate into a single "PTO" bucket; others separate.)
  • Pick an accrual method per policy. Six methods supported.
  • Decide caps + carry-over per policy.

The 6 accrual methods

FieldWhat it doesAccepted values / default
Hours-per-pay-periodFixed hours per period (e.g. 6.67 hours per bi-weekly = ~13 days/year).Most common. Easy to communicate.
Days-per-yearLump grant at the start of each year.Common for executives + senior roles.
Tenure-tieredAllowance increases at tenure milestones.E.g. 0-2 years = 15 days; 2-5 years = 20; 5+ = 25.
Hourly-workedAccrual per hour worked, regardless of period.For part-time + variable-schedule.
Anniversary-grantLump grant on employee's anniversary.Less common; useful for rolling year-based balances.
UnlimitedNo accrual; reasonable-use policy.No engine tracking; manager approval governs. Audit still records each request.

Carry-over rules

FieldWhat it doesAccepted values / default
Use-it-or-lose-itBalance over the cap forfeits at year-end.Common for PTO; state law may prohibit in some jurisdictions (e.g. CA).
Carry-over capLimited carry-over (e.g. up to 5 days).Balance over the cap forfeits.
Carry-over decayCarry-over balance decays at a configured date (e.g. end of Q1).Common for use-it-or-lose-it variants.
Unlimited carry-overBalance never forfeits.Common for sick leave; required by some state laws (e.g. CA paid sick).

Max cap

FieldWhat it doesAccepted values / default
Cap on lifetime balanceMaximum balance the employee can hold at any time.Accrual pauses when cap reached; resumes when balance decreases.
Cap per requestMaximum days per single request.Often used for sabbatical.
Cap per yearMaximum days used per year.Less common; can clash with regulated leave.

Waiting period

FieldWhat it doesAccepted values / default
From hire dateDays from start before accrual begins.Common: 0 (immediate) for sick; 30-90 for PTO.
From benefits-class assignmentIf benefits class changes (e.g. part-time → full-time), waiting restarts.Workspace-policy decides; common: no restart.

Regulated-leave trackers (automatic)

These run beneath the named policies — you don't configure them separately; they're enabled when the workspace adds the relevant jurisdictions:

FieldWhat it doesAccepted values / default
FMLA (US federal)Up-to-12-weeks unpaid for serious health condition / family member / military caregiver / bonding.Rolling 12-month window; intermittent supported.
CFRA (California)California state equivalent + extensions.Concurrent counting with FMLA.
NY-PFL (New York Paid Family Leave)Paid family-leave for NY employees.Premium-funded (employee payroll deduction).
MA-PFML (Massachusetts Paid Family + Medical Leave)Paid family + medical leave for MA employees.Premium-funded (split employer + employee).
Other state PFML / PFLWA / NJ / RI / CT / OR / CO / DE / MN as available.Enabled per workspace's enabled states.

Create a policy

  1. Click "+ New policy"

    Opens the policy editor.

  2. Pick the policy type

    PTO / sick / personal / sabbatical / parental / etc.

  3. Pick accrual method + amount

    Per the 6 supported methods.

  4. Set waiting period

    Days from hire (or benefits-class assignment).

  5. Set max cap (if applicable)

    Lifetime, per-request, or per-year.

  6. Set carry-over rule

    Use-it-or-lose-it / capped / unlimited / decay.

  7. Assign to benefits class(es)

    Eligibility per class.

  8. Save

    Audit log records HCM_TIMEOFF_POLICY_CREATED.

Year-end carry-over run

For use-it-or-lose-it / capped / decay policies, the carry-over run executes annually (or at the configured decay date):

  1. The platform schedules the run

    Workspace year-end timezone-aware.

  2. The run executes

    Balances over the cap forfeit; carry-over decay applied where applicable.

  3. Per-employee report

    Employees receive a notification with their carry-over result (what carried, what forfeited).

  4. Audit

    Audit log records HCM_TIMEOFF_YEAREND_CARRYOVER_RUN. Per- employee adjustments record under the existing HCM_TIMEOFF_BALANCE_ADJUSTED code where the engine intervenes.

Sabbatical policy

Sabbaticals are a special-case time-off policy with implications beyond accrual:

FieldWhat it doesAccepted values / default
EligibilityTypically a tenure-based threshold.E.g. 5 years of continuous service.
Comp during sabbaticalSalary continuation rate.Workspace-defined; common: 100% for the first 4 weeks, 50% for remainder.
Equity vestingWhether vesting continues, pauses, or resumes with adjustment.Typical: paused, resumes on return.
Benefits continuationWhether health / dental / vision stay active.Per benefits class.

Every field, explained

FieldWhat it doesAccepted values / default
Policy typePTO / sick / personal / etc.Workspace-defined taxonomy.
Accrual methodHow balance accrues over time.One of the 6 supported methods.
Accrual amountPer-period / per-year / per-hour-worked rate.Matches the chosen method.
Waiting periodDays before accrual begins.Per workspace policy.
Max capLifetime / per-request / per-year limit.Optional.
Carry-over ruleWhat happens at year-end.Use-it-or-lose-it / capped / decay / unlimited.
Tenure tiersAllowance milestones at tenure thresholds.Optional; common: 0-2 / 2-5 / 5+ years.
Eligible benefits classesWho can use the policy.Multi-select.

Audit codes

For SIEM ingestion + compliance review, this surface emits:

HCM_TIMEOFF_POLICY_CREATEDHCM_TIMEOFF_POLICY_UPDATEDHCM_TIMEOFF_YEAREND_CARRYOVER_RUNHCM_TIMEOFF_BALANCE_ADJUSTEDHCM_TIMEOFF_FMLA_ELIGIBILITY_CHECK

See Reference → Audit codes for the canonical description of each.

Common gotchas

  • "My state requires unlimited sick carry-over." Some states (CA, NY, NJ, etc.) prohibit use-it-or-lose-it for paid sick. AxisSynapse's compliance helpers flag this if you try to apply a forbidden rule to a state-resident employee.
  • "PTO use-it-or-lose-it is illegal in California." Yes, for vacation specifically (California treats vacation as wages). Apply carry-over decay only to other policy types for CA residents.
  • "My tenure tier triggered for an employee but the balance didn't bump." Tier transitions take effect prospectively; past accrual stays as accrued.
  • "FMLA shows used days I didn't expect." Concurrent counting (FMLA + CFRA + state PFL) consolidates per the rolling 12- month window. The tracker detail names each contributing day.

Troubleshooting

Error codeWhat it meansFix
TIMEOFF_POLICY_TYPE_DUPLICATETwo policies of the same type for the same class.Consolidate or differentiate.
TIMEOFF_POLICY_STATE_RULE_VIOLATIONRule forbidden in employee's state.Adjust the rule for affected employees.
TIMEOFF_CARRYOVER_DATE_INVALIDCarry-over decay date doesn't make sense.Pick a date after year-end.
TIMEOFF_TIER_THRESHOLD_OVERLAPTenure tiers overlap.Adjust thresholds.

Related

Time off (employee)

Employee-side flow that operates against these policies.

Payroll runs

PTO payout (on separation) flows through payroll.