If you want to make a time off policy be labour based, and have employees accrue time off based on hours they have worked or their employment status (FTE hours), this can be set up in the settings of a time off policy.
Click your name on the top right, then click Settings.
On the settings menu click Time off, then click Policies.
When either creating a new time off policy or amending an existing policy, the option to base accrual on employment status or timesheets only shows when either for every 1 hour logged and accrue or for every 1 day logged and accrue is selected in the third drop down.
Once selected you can then base it on either employment status or timesheets.
Once you have finished applying all your other time off policy settings, scroll to the bottom and click Create or Save.
⚠️CAUTION: This makes this time off policy a labour-based policy. After creation, some settings in this policy are unable to be edited, so make sure you have everything how you want for this policy before you click Create or Save.