Leave management in Pitch N Hire HRMS

What leave includes

How do you configure leave types and policies?

A leave type carries its own behaviour: the unit it is booked in, whether half days are allowed, whether it is paid, whether a document is required past a certain duration, who is eligible, and whether an unused balance can be carried or encashed. A policy groups several types with their accrual and cap settings and is assigned to a population rather than to individuals, so probationers, confirmed staff and contractors can hold genuinely different entitlements in one system. Because assignment is by group, a confirmation or a transfer moves the person onto the destination policy from its effective date instead of prompting a manual balance rebuild. Effective dating applies to the policy itself too: amending an accrual rate mid-year changes future credits and leaves already-credited balances intact, which is what stops a policy revision quietly rewriting everybody's history.

• Unit, half-day permission, paid status and document rules sit on the type.
• Accrual, caps and carry-forward sit on the policy that groups the types.
• Policy changes are effective-dated and do not rewrite credited balances.

How does leave accrual and carry-forward work?

You choose when entitlement is credited and in what size: the whole allowance at the start of a cycle, or in instalments on a monthly or quarterly schedule. Pitch N Hire runs the credit on the date you set and records it as a transaction on the employee's ledger, so a balance is always explainable as a sequence of credits, deductions and adjustments rather than as one number nobody can reconstruct. At cycle close, carry-forward applies the cap you configured, and the excess either lapses or converts to encashment according to the policy. Accrual can also be conditioned, for instance withheld during a notice period or during unpaid absence, which prevents an entitlement building while nobody is working. Every automatic movement is labelled on the ledger, so an employee asking why their balance changed gets an answer from the record.

• Credits are ledger transactions, not a recalculated total.
• Carry-forward caps, lapse and conversion to encashment are policy settings.
• Accrual can be paused for defined situations such as unpaid absence.

What happens to balances when someone joins or exits mid-cycle?

Pro-rata handles both ends. A joiner is credited in proportion to the part of the cycle they will actually work, using the proportioning basis and rounding you configure, so a mid-month start does not receive a full period's allowance and does not require a manual correction later. At exit the same logic runs in reverse: entitlement is recalculated to the last working day, and the difference between what was credited and what was earned appears as a recoverable balance or as days available for encashment. Both figures are produced with their working shown, which matters because a full-and-final settlement is the single most disputed number in the employee lifecycle. Both outcomes are passed to the final payroll run for that person, so the settlement figure and the leave ledger are produced from one set of numbers rather than reconciled afterwards.

• Joining credit is proportioned by the basis and rounding you set.
• Exit recalculates entitlement to the last working day.
• Over-taken and unused days both surface with their derivation.

How are holiday calendars handled across locations?

Holidays belong to a calendar, and a calendar is attached to a location, so a company operating across regions is not forced onto one list. An employee inherits the calendar of the location they are mapped to, and a transfer moves them onto the destination calendar from the effective date. The practical effect appears inside a leave request: when an applied range spans a holiday or a week-off, those days are excluded from the deduction, so a week away costs the balance only the working days it actually contains. Optional or restricted holidays are supported as a type with a selection limit, where employees choose from a published list up to the number you allow. Everyone sees the calendar that applies to them rather than a single company-wide list they then have to mentally filter.

• Calendars are attached to locations and inherited by the employee.
• Holidays and week-offs inside a range are not deducted.
• Optional holidays are a selectable type with a limit you configure.

How does a leave request move through approval?

An employee applies against a live balance, so an application that would breach entitlement is either blocked or marked as taking the balance negative before it is submitted, depending on the policy. The request then follows the chain you defined, which is the reporting manager by default and can include a second approver for longer durations or particular types. Approvers see the balance, the dates, the reason, any attached document and who else on the team is already away over those dates, which is the information a decision actually needs. Approval deducts from the ledger; rejection leaves it untouched and records the reason. Cancellation and withdrawal follow the same route in reverse, so a trip that did not happen returns the days. Employees track everything from the self-service portal without opening a ticket for a status update.

• Applications are validated against the live balance before submission.
• Approvers see team overlap for the requested dates.
• Cancellations and withdrawals return days through the same chain.

How is leave encashment calculated and paid?

Encashment is enabled per leave type, and you decide when it can happen: at cycle close on the balance above the carry-forward cap, on request within limits you set, or at exit on the remaining eligible balance. Pitch N Hire identifies the eligible days, applies the components of the salary structure your policy nominates as the basis, and passes the result to the payroll run for the correct period. Because the eligible-day count comes from the same ledger that produced the balance, the encashed figure and the balance can never disagree. Encashment rules, and the tax treatment that follows, differ by country and by employment type and change over time, so they are configured rather than assumed; confirm your own position before switching the option on for a leave type. The payout appears on the payslip as its own line rather than folded into the month's earnings.

• Encashment is enabled per type, with the trigger you choose.
• The salary components used as the basis are a policy setting.
• Eligible days come from the same ledger that produced the balance.

Where do employees see their leave balance?

The balance is on the employee's own dashboard, showing what is available now, what is committed to approved future dates, and what is pending a decision, because a single number combining all three is what causes double-booked holidays. The ledger behind it is open to the employee: credits, deductions, adjustments, lapses and encashments in order, each labelled. A team view shows who else is already approved to be away, so people can self-organise instead of discovering the clash at approval. Managers get the same picture for their reports plus the pending queue. This visibility removes most of the traffic that otherwise reaches HR, which is entirely balance queries and status chasing, and it is why the module is worth the configuration effort even for organisations that consider their leave rules simple. Notifications reach the applicant and the approver, so neither is waiting on an email nobody sent.

• Available, committed and pending are shown separately.
• The full transaction ledger is visible to the employee.
• A team availability view is shown before an application is made.

How does leave interact with attendance and payroll?

Approved leave marks the dates as leave rather than absence, so attendance does not raise an exception for a day somebody was granted off, and the roster shows them as unavailable during planning. At the close of the period Pitch N Hire hands payroll three separate things: days on paid leave, days of unpaid leave that become loss of pay, and any encashment falling in that period. Keeping them separate is deliberate, because they behave differently on a payslip and are queried differently afterwards. Loss of pay is derived from the leave ledger and the attendance record together, never from one of them alone, so a day covered by approved leave cannot also be deducted as absence. If you are still evaluating the category rather than the product, our overview of leave management software covers what to compare; this page describes what the module in Pitch N Hire actually does once it is configured.

• Approved leave suppresses the attendance exception for those dates.
• Paid leave, loss of pay and encashment reach payroll as distinct figures.
• The roster reads approved leave during planning, not after publishing.