What is Leave Quota? Meaning and Example

How leave quotas are set

The company fixes quotas in its leave policy, within any minimums in the laws and rules that apply to it, such as the annual leave rule for workers under the OSH Code and the state's Shops and Establishments rules. Quotas often differ by employee category, such as staff and workers, or by grade, and part-year employees get a pro rata quota. Some leave types have a quota per event rather than per year, such as five days of bereavement leave for each bereavement.

Five numbers employees confuse

Explaining these five numbers in one place, with a worked example, prevents most of the leave queries HR receives in a year. Put the explanation in the leave policy and on the self-service screen, not only in the induction deck.

• Quota: the yearly entitlement, such as 18 days of EL
• Accrual: how the quota is credited, such as 1.5 days a month
• Balance: what is available now, after leave taken
• Limit per spell: the most days allowed in one application, such as 3 days of CL
• Maximum balance: the cap on how much can be held at any time

Reviewing quotas

Review quotas once a year against how leave is actually used. If most people lose casual leave every year, the quota may be too high or taking it may be too hard. In ZeniaHR, the default leave types come with monthly rates of CL 1, EL 1.5 and SL 0.5 days, equal to 12, 18 and 6 days a year, which HR can edit, and each leave type can limit the maximum days per spell and per application.

Frequently asked questions