When you create a time off policy, if you want an employee to accrue time off based on the hours they have worked, you can create a labour-based policy.

To make a time off policy labour-based, as you create a policy, when choosing how you want allocated days to be accrued, you must select based on time worked and accrue.
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You can select how many hours or days you want to be allocated for every day or hour logged.

There are three ways to base how a labour policy considers what determines working days and daily hours. You can either accrue time off based on: