Time Off Types in Odoo 18
By Braincuber Team
Published on January 6, 2026
HR manages leave requests through an inconsistent patchwork: annual leave tracked in spreadsheets, sick leave approved via email, personal days noted on calendars, and unpaid leave handled through paper forms. When employees ask how many vacation days remain, HR scrambles through multiple systems. When payroll runs, they manually adjust for unpaid leave. When managers need to approve requests, they lack visibility into team schedules. This fragmented approach wastes time, creates errors, and frustrates everyone—from employees uncertain about their balances to managers blind to staffing gaps.
Odoo 18 Time Off module provides configurable Time Off Types that define exactly how each leave category works. Create types for annual leave with allocation requirements, sick leave with simple approval, unpaid leave allowing negative balances, compensatory time with hour-based tracking—each with its own approval workflow, allocation rules, payroll integration, and visibility settings. Employees see their balances on dashboards, managers approve through workflows, payroll calculates automatically, and HR maintains control through a single, unified system.
Core Benefit: Each time off type has its own rules: approval workflow, allocation requirements, negative balance limits, payroll integration, and dashboard visibility. Configure once per leave category → employees request correctly → approvals flow automatically → payroll calculates accurately.
Understanding Time Off Types
Leave Categories
Define distinct types: Annual Leave, Sick Leave, Personal Days, Bereavement, Jury Duty, Maternity/Paternity, Compensatory Time, Unpaid Leave. Each type has unique rules matching your HR policies.
Approval Workflows
Configure approval chains: auto-approve, manager only, HR officer only, or both. Critical leaves like extended vacation require multi-level approval; sick days may auto-approve with documentation.
Allocation Control
Require pre-allocated balances (15 days annual leave), allow unlimited requests (unpaid leave), or permit overdrafts with caps (up to -5 days emergency). Control who can request extra days.
Payroll Integration
Link time off types to work entry types for automatic payroll calculation. Paid leave continues salary, unpaid leave deducts, sick leave may have different rates—all calculated automatically.
Accessing Time Off Type Configuration
Navigate to Configuration
Access the time off type settings:
- Go to Time Off → Configuration → Time Off Types
- View existing types: Paid Leave, Sick Leave, Compensatory Days, etc.
- Click New to create a new type or select existing to modify
- Each type defines a complete leave category with all rules
Time Off Type Configuration Fields
TIME OFF TYPE CONFIGURATION FIELDS ═══════════════════════════════════════════════════════════ GENERAL SETTINGS ─────────────────────────────────────────────────────────── Display Name Purpose: Label shown throughout the system Examples: "Annual Leave", "Sick Time", "Personal Day" Color Purpose: Visual identification in calendars and reports Best Practice: Use distinct colors for different types APPROVAL SETTINGS ─────────────────────────────────────────────────────────── Approval Options: • No Validation - Auto-approved immediately • By Time Off Officer - HR must approve • By Employee's Approver - Manager must approve • Both - Manager AND HR must approve Notified Time Off Officer Purpose: Specific HR person to notify on requests ALLOCATION SETTINGS ─────────────────────────────────────────────────────────── Requires Allocation • Yes - Employee needs allocated days before requesting • No Limit - Can request without allocation Employee Requests (if Allocation = Yes) • Extra Days Requests Allowed • Not Allowed NEGATIVE BALANCE SETTINGS ─────────────────────────────────────────────────────────── Allow Negative Cap Purpose: Let employees go into negative balance Maximum Excess Amount Purpose: Limit how negative balance can go Example: -5 days maximum overdraft TIME TRACKING SETTINGS ─────────────────────────────────────────────────────────── Take Time Off In • Day - Full days only • Half Day - Allow half-day requests • Hour - Hourly tracking Public Holiday Included Enabled: Holidays consume leave days Disabled: Holidays excluded (more common) PAYROLL INTEGRATION ─────────────────────────────────────────────────────────── Work Entry Type • Paid Leave - Full salary continues • Unpaid - Salary deduction applied • Sick Leave - May have different rate Kind of Time Off • Working Time - Counts as work • Absence - Counts as absence DISPLAY SETTINGS ─────────────────────────────────────────────────────────── Show on Dashboard Enabled: Appears on employee dashboard Disabled: Hidden but still selectable
Common Time Off Type Configurations
1. Annual Leave (Paid Time Off):
TIME OFF TYPE: Annual Leave (Paid Time Off) ═══════════════════════════════════════════════════════════ General Settings Display Name: Annual Leave Color: Blue (#3498db) Approval Settings Approval: By Employee's Approver Notified Officer: HR Manager Allocation Settings Requires Allocation: Yes Employee Requests: Extra Days Requests Allowed Default Allocation: 15 days per year Negative Balance Allow Negative Cap: Disabled Time Tracking Take Time Off In: Day Public Holiday Included: Disabled Payroll Integration Work Entry Type: Paid Leave Kind of Time Off: Absence Display Show on Dashboard: Enabled BEHAVIOR: Manager approval required, cannot overdraft, holidays excluded, full salary continues
2. Sick Leave:
TIME OFF TYPE: Sick Leave ═══════════════════════════════════════════════════════════ General Settings Display Name: Sick Leave Color: Orange (#e67e22) Approval Settings Approval: By Time Off Officer Notified Officer: HR Coordinator Allocation Settings Requires Allocation: Yes Employee Requests: Not Allowed Default Allocation: 10 days per year Negative Balance Allow Negative Cap: Enabled Maximum Excess: 5 days Time Tracking Take Time Off In: Half Day Public Holiday Included: Disabled Payroll Integration Work Entry Type: Sick Leave Kind of Time Off: Absence Display Show on Dashboard: Enabled BEHAVIOR: HR validation, half-day allowed, can overdraft up to 5 days for emergencies, sick rate in payroll
3. Unpaid Leave:
TIME OFF TYPE: Unpaid Leave ═══════════════════════════════════════════════════════════ General Settings Display Name: Unpaid Leave Color: Gray (#7f8c8d) Approval Settings Approval: Both (Manager AND HR) Notified Officer: HR Manager Allocation Settings Requires Allocation: No Limit Time Tracking Take Time Off In: Day Public Holiday Included: Disabled Payroll Integration Work Entry Type: Unpaid Kind of Time Off: Absence Display Show on Dashboard: Disabled BEHAVIOR: Dual approval required, no allocation needed, salary deducted, hidden from dashboard
4. Compensatory Time:
TIME OFF TYPE: Compensatory Time Off ═══════════════════════════════════════════════════════════ General Settings Display Name: Comp Time Color: Green (#27ae60) Approval Settings Approval: By Employee's Approver Allocation Settings Requires Allocation: Yes Employee Requests: Not Allowed Allocation: Accrued from overtime Negative Balance Allow Negative Cap: Disabled Time Tracking Take Time Off In: Hour Public Holiday Included: Disabled Payroll Integration Work Entry Type: Paid Leave Kind of Time Off: Working Time Display Show on Dashboard: Enabled BEHAVIOR: Hour-based tracking, accrues from overtime, manager approval, cannot go negative
Complete Company Leave Policy
ACME TECHNOLOGIES - COMPLETE LEAVE POLICY ═══════════════════════════════════════════════════════════ TYPE 1: Annual Leave Allocation: 15 days/year (20 for 5+ years) Approval: Manager Requests: Extra days purchasable Tracking: Full days Payroll: Paid leave TYPE 2: Sick Leave Allocation: 10 days/year Approval: HR Overdraft: Up to 5 days Tracking: Half-day minimum Payroll: Sick rate TYPE 3: Personal Days Allocation: 3 days/year Approval: Manager Requests: No extras Tracking: Full days Payroll: Paid leave TYPE 4: Unpaid Leave Allocation: No limit Approval: Manager + HR Tracking: Full days Payroll: Unpaid TYPE 5: Compensatory Time Allocation: Accrued from overtime Approval: Manager Tracking: Hourly Payroll: Paid leave TYPE 6: Bereavement Allocation: No limit (3-5 days policy) Approval: Auto-approved Tracking: Full days Payroll: Paid leave APPROVAL WORKFLOW Standard (1-5 days): Manager only Extended (6+ days): Manager + HR Unpaid (any): Manager + HR Sick (3+ days): HR + documentation
Best Practices
✅ Follow These Guidelines:
- Keep types distinct: Create separate types for each leave category—enables accurate tracking and reporting
- Use clear names: "Annual Leave" is clearer than "PTO Type A"—employees should understand instantly
- Match approval to risk: Higher-impact leave should require more approval levels
- Configure negative balances carefully: Allow for sick leave but not vacation
- Link to payroll correctly: Verify work entry type mapping for accurate salary calculations
- Hide rarely-used types: Bereavement and jury duty don't need dashboard space
- Document your policy: Keep reference of all types and rules for HR training
- Review annually: Update allocations and workflows as policy evolves
Common Issues and Solutions
🚨 Issue #1: Employee Cannot Request Leave
"Requires Allocation" is Yes but no allocation exists. Solution: Create allocation for the employee or change to "No Limit".
🚨 Issue #2: Public Holidays Consuming Leave
"Public Holiday Included" is enabled. Solution: Disable if your policy excludes holidays from leave consumption.
🚨 Issue #3: Leave Not on Dashboard
"Show on Dashboard" is disabled. Solution: Enable it if employees should see their balance.
🚨 Issue #4: Payroll Not Calculating Correctly
Work Entry Type not linked properly. Solution: Verify the type matches intended payroll treatment.
Conclusion
Configuring Time Off Types in Odoo 18 transforms leave management from a fragmented, manual process into a streamlined, automated system. Create distinct types for each leave category—annual leave with allocations and manager approval, sick leave allowing overdrafts, unpaid leave with dual approval, compensatory time tracked hourly, bereavement auto-approved. Each type controls its own approval workflow, allocation requirements, negative balance limits, payroll integration, and dashboard visibility. Employees see accurate balances, managers approve through consistent workflows, and payroll calculates leave impact automatically.
🎯 Key Takeaway: One time off type = one complete rule set. Configure approval, allocation, overdraft, tracking, and payroll per type. Employees request → workflow applies → payroll calculates. No more spreadsheets, no more email approvals, no more manual adjustments.