Time Off Types Odoo 18
By Braincuber Team
Published on December 30, 2025
HR managers struggling with manual time off tracking lose productivity: employee emails vacation request, manager approves verbally but forgets to document it, payroll runs and employee gets paid for days they took off unpaid, year-end audit reveals 23 employees exceeded annual leave allowance by 47 days total, compliance officer discovers sick leave used for personal errands because no validation rules configured—resulting in $18,000 overpayment, compliance violations, and zero visibility into leave balances because no centralized time off management system.
Odoo 18 Time Off Types feature automates leave management through customizable time off categories (paid vacation, sick leave, unpaid leave, parental leave), configurable allocation rules (accrual vs fixed), approval workflows with multi-level validation, automatic balance tracking and carry-forward policies, integration with payroll and attendance, calendar visualization, and compliance enforcement—reducing administrative time 80% while ensuring policy adherence and accurate leave accounting.
Core Benefit: Time Off Type = template defining how specific leave category works (vacation days = paid, accrued monthly, requires 3-day advance notice, max 20 days/year). One setup = consistent policy enforcement across entire company forever.
Understanding Time Off Types
Time Off Types are categories of employee absences, each with unique rules, approval requirements, and compensation policies. Odoo 18 allows unlimited custom types to match your company's leave policies and regional labor laws.
Paid Time Off
Vacation days, holidays, compensatory time. Employee receives normal salary during absence. Typically accrued based on tenure or allocated annually.
Sick Leave
Medical absences with or without pay. May require doctor's certificate. Often separate from vacation balance with different accrual/usage rules.
Parental Leave
Maternity, paternity, adoption leave. Extended duration, often partially paid. Governed by specific legal requirements per jurisdiction.
Unpaid Leave
Personal time without compensation. Sabbaticals, extended leave for personal reasons. Affects payroll deductions but maintains employment status.
Compensatory Time
Time off earned for overtime or weekend work. Convert extra hours into leave days. Common in industries with variable schedules.
Training/Study Leave
Professional development absences. Conferences, courses, certifications. May be paid or unpaid depending on company policy.
Accessing Time Off Configuration
Configure time off types in the Time Off application settings. Path: Time Off → Configuration → Time Off Types
Open Time Off Module
Navigate to Time Off application from Odoo main menu
Ensure you have Time Off Manager access rights
Access Configuration
Go to Configuration → Time Off Types
You'll see list of existing time off types (default types included)
Creating a New Time Off Type
Let's walk through creating a comprehensive paid vacation time off type with all configuration options.
Create New Type
Click New button
Fill in the Time Off Type name (e.g., "Paid Vacation", "Sick Leave", "Parental Leave")
General Tab Configuration:
Name: Paid Vacation Company: [Your Company] (multi-company setup) DISPLAY OPTIONS: ☑ Display Icon: Choose emoji/icon for calendar display Example: 🏖️ for vacation, 🏥 for sick leave ☑ Color: Select color for calendar visualization Vacation = Blue, Sick = Red, Parental = Green VALIDITY: From: [Leave blank for always valid] To: [Leave blank for no expiration] Note: Use date limits for temporary leave types Example: "COVID Emergency Leave" valid 2020-2023
Time Off Requests Tab:
Configure Request Rules
- Request Unit: Day (full days) or Hours (partial days)
- Allocation Type: No Limit, Fixed, or Accrual
- Requires Allocation: Must have allocated days before requesting
- Accrual Account: Allow negative balance (debt) or block when insufficient
REQUEST SETTINGS FOR PAID VACATION: Request Unit: Day ☑ Allow Half Days Employees can request 0.5 day intervals Allocation Type: Fixed Allocation ☑ Requires Allocation Employees can't request without available balance Accrual Account: ☑ Allow Negative Balance: NO Prevents requests exceeding available days Take Time Off in: Days Alternative: Hours (for flexible scheduling) VALIDATION: ☑ Approval Required: Yes Approver Levels: - First Approval: Direct Manager - Second Approval: HR Manager (for >5 days) ☑ Double Validation Requires both manager and HR approval Maximum Days Per Request: 15 Prevents single excessive requests Long vacations need splitting
Allocation Types Explained:
| Allocation Type | How It Works | Best Use Case |
|---|---|---|
| No Limit | Unlimited time off, no balance tracking | Unpaid leave, training leave with open access |
| Fixed Allocation | Set number of days allocated annually/manually | Traditional vacation (20 days/year fixed) |
| Accrual Based | Days accumulate over time (monthly/weekly) | Vacation earned progressively (1.67 days/month = 20/year) |
Accrual Configuration
Accrual-based types automatically grant leave days over time. Common in jurisdictions requiring progressive leave earning.
Enable Accrual
Set Allocation Type to "Accrual Based"
Additional accrual-specific fields will appear
ACCRUAL PLAN FOR 20 DAYS ANNUAL VACATION: Accrual Frequency: Monthly Days Accrued Per Period: 1.67 days (20 days ÷ 12 months = 1.67) Start Accrual: After probation period First Accrual: After 3 months New employees wait 90 days before accrual starts Accrual Date: Month Start / Month End When days get credited to balance Maximum Accrual: 40 days Cap prevents unlimited accumulation Forces employees to take time off EXAMPLE: Employee starts: Jan 1 First accrual: Apr 1 (after 3 month probation) Monthly accrual: 1.67 days on 1st of each month After 12 months: 1.67 × 9 months = 15 days After 24 months: 20 days (reached annual cap)
Accrual Frequency Options:
- Daily: Accrue small amounts each day (0.055 days/day = 20/year)
- Weekly: Weekly accrual (0.38 days/week)
- Bi-weekly: Every two weeks (0.77 days)
- Monthly: Most common (1.67 days/month for 20/year)
- Yearly: Single annual allocation on anniversary date
Approval Workflow Configuration
Define approval hierarchy and validation rules to enforce company policies.
SINGLE APPROVAL (Simple Workflow): ☑ Requires Approval Approver: Employee's Manager Automatically determined from employee record Use Case: Small companies, simple policies DOUBLE VALIDATION (Strict Workflow): ☑ Requires Approval ☑ Double Validation Required First Approver: Direct Manager Reviews business impact, team coverage Second Approver: HR Manager Verifies policy compliance, balance accuracy Use Case: - Requests > 5 consecutive days - Compliance-heavy industries - Policy exceptions requiring HR review NO APPROVAL (Auto-Approve): ☐ Requires Approval Use Case: - Compensatory time off (pre-approved) - Manager-level positions (self-service) - Emergency leave types
Payroll Integration
Connect time off types with payroll for automatic salary calculations and deductions.
Configure Work Entry Type
In Payroll tab:
- Work Entry Type: Link to payroll category (Paid Leave, Unpaid Leave, Sick Leave)
- Timesheet Encoding: Allow/prevent timesheet entry during leave
- Color: Calendar color coding
PAID VACATION: Work Entry Type: Paid Time Off Payroll Impact: 100% salary maintained Timesheet Encoding: Not Allowed (Prevents logging work hours during vacation) SICK LEAVE (Paid): Work Entry Type: Sick Leave - Paid Payroll Impact: 100% salary for first 10 days (Configure in salary rules for progressive reduction) Medical Certificate: Required after 3 consecutive days UNPAID LEAVE: Work Entry Type: Unpaid Leave Payroll Impact: 0% salary - automatic deduction Calculation: (Monthly salary ÷ 30) × unpaid days Example: $3,000 salary, 5 unpaid days = $500 deduction PARENTAL LEAVE: Work Entry Type: Maternity/Paternity Leave Payroll Impact: - Week 1-6: 100% (company paid) - Week 7-12: 60% (government subsidy) - Week 13+: 0% (unpaid extension)
Advanced Configuration Options
Negative Balance (Debt) Allowance:
⚠️ Allow Negative Balance
Enable this to let employees request time off exceeding current balance. They "owe" the company days that will be deducted from future accruals. Example: New employee with 0 days takes 5-day vacation in month 1. Balance becomes -5 days. Future accruals repay debt before going positive. Use carefully—requires exit policy for employees leaving with negative balance.
Carry Forward Rules:
OPTION 1: Use It or Lose It Unused Days at Year-End: Expire Carry Forward Limit: 0 days Result: Employee with 5 unused days loses them Jan 1 Policy: Encourages maximum time off usage OPTION 2: Limited Carry Forward Carry Forward Limit: 5 days max Expiration: March 31 of following year Result: Employee with 8 unused days carries 5 forward Remaining 3 days expire Dec 31 Grace period: Must use carried days by Q1 end OPTION 3: Unlimited Carry Forward Carry Forward Limit: Unlimited Maximum Accrual Cap: 40 days Result: Unused days accumulate up to cap Prevents hoarding beyond reasonable limit CONFIGURATION IN ODOO: Settings → Accruals → Carry Forward Set maximum days transferable to next period Define expiration date for carried balances
Notice Period Requirements:
CONFIGURE MINIMUM NOTICE PERIOD: Time Off Type Settings → Advanced: Days Notice Required: - Vacation (1-2 days): 3 days notice - Vacation (3-5 days): 2 weeks notice - Vacation (5+ days): 1 month notice - Sick Leave: Same-day allowed (0 days) - Emergency Leave: No notice (negative allowed) IMPLEMENTATION: This prevents last-minute requests disrupting operations System blocks requests not meeting notice requirement Manager override available for exceptions EXAMPLE: Employee requests June 15-19 vacation on June 12 Required notice: 2 weeks (14 days) Actual notice: 3 days System response: "Request denied - insufficient notice"
Supporting Documents Configuration
Require document uploads for specific leave types to ensure policy compliance.
Enable Document Requirements
In Time Off Type configuration:
- Supporting Document: Enable requirement toggle
- Document Type Description: Specify what's needed (medical certificate, court summons, etc.)
- Mandatory After: Number of days triggering requirement (e.g., sick leave >3 days)
SICK LEAVE: ☑ Require Supporting Document Document Description: "Medical certificate from licensed physician" Mandatory After: 3 consecutive days Validation: HR reviews before final approval BEREAVEMENT LEAVE: ☑ Require Supporting Document Document: "Death certificate or obituary notice" Mandatory: All requests Relationship verification: Required JURY DUTY: ☑ Require Supporting Document Document: "Official court summons or jury duty notice" Mandatory: All requests Compliance: Legal obligation verification PARENTAL LEAVE: ☑ Require Supporting Document Document: "Birth certificate or adoption papers" Timing: Can submit post-leave Government subsidy: Documentation needed for claims
Complete Time Off Type Examples
Example 1: Annual Paid Vacation (Accrual-Based)
GENERAL: Name: Annual Paid Vacation Icon: 🏖️ Color: Blue Company: All Companies REQUEST: Request Unit: Day ☑ Allow Half Days Allocation Type: Accrual Based ☑ Requires Allocation ☐ Allow Negative Balance ACCRUAL: Frequency: Monthly Days Per Period: 1.67 (20 days/year) First Accrual: After 3 months employment Maximum Accrual: 40 days Carry Forward: 5 days max (expires March 31) APPROVAL: ☑ Requires Approval (Manager) ☑ Double Validation (>5 days needs HR) Notice Required: 2 weeks for 3+ days PAYROLL: Work Entry Type: Paid Time Off Salary Impact: 100% maintained Timesheet: Not allowed during leave RESULT: - New employee earns 1.67 days/month after probation - Can request when balance available - Manager approves 1-5 days, HR approves 6+ days - Unused days carry forward (max 5), rest expire - Full pay during vacation
Example 2: Sick Leave (Document Required)
GENERAL: Name: Sick Leave Icon: 🏥 Color: Red Company: All Companies REQUEST: Request Unit: Day ☑ Allow Half Days Allocation Type: Fixed Allocation ☑ Requires Allocation: 10 days/year ☐ Allow Negative Balance APPROVAL: ☑ Requires Approval (Manager) ☐ Double Validation Notice Required: 0 days (same-day allowed) DOCUMENTS: ☑ Require Supporting Document Document: "Medical certificate from doctor" Mandatory After: 3 consecutive days PAYROLL: Work Entry Type: Sick Leave - Paid Salary Impact: - Days 1-10: 100% paid - Days 11+: 60% paid (or unpaid per policy) SPECIAL RULES: ☑ Consecutive Day Limit: 3 days without certificate ☑ Annual Limit: 10 days Exceeding limit: Switches to unpaid sick leave type
Example 3: Unpaid Leave (Flexible)
GENERAL: Name: Unpaid Personal Leave Icon: 🚫 Color: Gray REQUEST: Request Unit: Day Allocation Type: No Limit ☐ Requires Allocation (unlimited) APPROVAL: ☑ Requires Approval (Manager + HR) ☑ Double Validation Notice Required: 4 weeks (1 month) Maximum per Request: 90 days PAYROLL: Work Entry Type: Unpaid Leave Salary Impact: 0% - Full deduction Calculation: (Monthly salary ÷ working days) × unpaid days Benefits: Maintained (health insurance continues) USE CASES: - Extended personal travel (1-3 months) - Family care situations - Sabbatical leave - Career break POLICY NOTES: - Approval discretionary (not guaranteed) - Position held for up to 90 days - Beyond 90 days: Consider LOA or resignation - Must have exhausted all paid leave first
Allocating Time Off to Employees
After configuring types, allocate leave balances to employees. Path: Time Off → Allocations → New
Create Allocation
- Time Off Type: Select type (Paid Vacation, Sick Leave, etc.)
- Employees: Select individual or multiple employees
- Number of Days: Allocation amount
- Valid From/To: Allocation validity period (typically calendar year)
- Mode: Add to existing balance or Set new balance
ANNUAL ALLOCATION JANUARY 1: Time Off Type: Annual Paid Vacation Employees: All Full-Time Employees (filter) Number of Days: 20 Valid From: January 1, 2024 Valid To: December 31, 2024 Mode: Set Balance (overwrites existing) Description: "2024 Annual Vacation Allocation" RESULT: - 150 employees each receive 20 days vacation - Previous year unused days handled per carry-forward rules - Balance visible immediately in employee self-service portal - Approval required, click "Validate" to activate PRO TIP - Tenure-Based Allocation: - 0-2 years: 15 days - 3-5 years: 20 days - 6+ years: 25 days Create separate allocations per tenure group using employee filters
Employee Self-Service Portal
Employees can view balances, request time off, and track status through self-service interface.
Employee View Features:
- Dashboard: Current balances for all time off types at a glance
- Request Creation: Select type, dates, duration, add justification
- Calendar View: Visualize team schedules, avoid conflicts
- Request Status: Track approval workflow (submitted → approved → validated)
- Balance History: View accruals, usage, remaining days
- Document Upload: Attach required supporting documents
Manager Dashboard Features
Managers review requests, check team coverage, approve/reject with visibility into business impact.
Manager Capabilities:
- Team Calendar: See all team member absences color-coded by type
- Approval Queue: Pending requests requiring action
- Coverage Analysis: Check if minimum staffing maintained during requested dates
- Balance Review: Verify employee has sufficient balance before approving
- Bulk Actions: Approve/reject multiple requests at once
- Override Options: Approve exceptions with justification notes
Reporting and Analytics
Access comprehensive reports to monitor leave usage, forecast liabilities, and ensure compliance.
Balance Report
Current leave balances per employee, per type. Identify who needs to use vacation before year-end or who's approaching accrual caps.
Usage Analytics
Trends over time. Average days taken per employee, peak absence periods, department comparisons for workforce planning.
Liability Calculation
Financial impact of unused vacation days. Accrued vacation = company debt. Critical for financial statement accuracy.
Compliance Audit
Verify policy adherence. Ensure allocations match contracts, no one exceeds limits, documentation requirements met.
Best Practices
✅ Follow These Guidelines:
- Match employment contracts: Ensure time off type allocations match what's promised in offer letters
- Document policies clearly: Write employee handbook section explaining each time off type, rules, approval process
- Set realistic notice periods: Balance business needs with employee flexibility (2 weeks for vacation reasonable)
- Review accrual caps annually: Adjust maximum accumulation based on usage patterns to prevent massive payouts on termination
- Train managers on approval: Consistent decision-making across departments prevents discrimination claims
- Audit year-end balances: Verify no one has negative balances, carry-forward rules applied correctly
- Communicate changes: When modifying time off types, notify all employees with effective date and transition plan
Common Mistakes to Avoid
🚨 Mistake #1: Allowing Negative Balances Without Exit Policy
Employee takes 20 days vacation with -15 day balance, then resigns = company can't recover owed days. Solution: Disable negative balance OR add final paycheck deduction clause to employment contract.
🚨 Mistake #2: No Carry Forward Cap
Employee accumulates 80 vacation days over 4 years, resigns, company owes $15,000 payout. Solution: Set maximum accrual cap (40 days) and/or limit carry forward (5-10 days max).
🚨 Mistake #3: Same Allocation for All Employees
Part-time employees get same 20 days as full-time = unfair and expensive. Solution: Pro-rate allocations based on work percentage (20hr/week employee = 10 days).
🚨 Mistake #4: Inconsistent Manager Approvals
Manager A always approves, Manager B always denies = employee complaints of favoritism. Solution: Written approval criteria, HR oversight for exceptions, regular manager training.
Conclusion
Odoo 18 Time Off Types automate leave management through customizable categories defining rules, allocations, and workflows for each absence type. Configure types with appropriate approval levels, accrual policies, payroll integration, and document requirements. Set up allocations matching company policy and employment contracts. Enable employee self-service for requests and manager approval dashboards for oversight. Proper configuration ensures policy compliance, accurate payroll processing, audit trail documentation, and 80% reduction in administrative time managing time off requests—while providing employees transparency into balances and fair consistent treatment.
🎯 Key Takeaway: Well-configured time off types = happy employees (clear expectations, easy requests) + happy managers (automated approvals, no scheduling conflicts) + happy accountants (accurate liabilities, payroll integration). Poor configuration = chaos, disputes, compliance violations.