How do tenure-based and anniversary-based allowances work?

Tenure-based allowance and anniversary-based allowance years solve two different problems.

• Tenure-based allowance adds extra holiday based on length of service.
• Anniversary-based allowance controls when the employee’s yearly allowance starts and resets.

They can be used separately or together.

How does tenure-based allowance work?

Use Tenure Based Allowance when employees receive additional leave after reaching service milestones.

For example:

• Base department or individual allowance: 25 days
• After 2 years: +1 day, giving 26 days
• After 5 years: +3 days, giving 28 days

Only the latest applicable tenure band is added to the base allowance. The bands are not cumulative.

The policy uses the employee’s Start of Employment date to determine which band applies.

In the current policy setup, tenure thresholds are entered as days since employment started, so configure the threshold to match your organisation’s service rules.

What if my tenure bands contain the full allowance?

If you configure bands as the full entitlement — for example 25, 26 and 28 days — set the employee’s underlying department or individual allowance to 0.

Otherwise the tenure amount will be added on top of the base allowance.

For full settings, see Tenure Based Allowance.

How does an anniversary-based allowance year work?

Under Leave year basis, you can choose Each employee’s employment anniversary.

The employee’s allowance year then starts from their Start of Employment date instead of using one company-wide leave year.

For example, an employee who started on 15 September can have an allowance year running:

15 September → 14 September

Their yearly allowance resets with their employment anniversary.

This is separate from tenure-based allowance: the anniversary determines when the allowance year resets, while tenure determines how much extra allowance is added.

Can I use both together?

Yes.

An employee can have an allowance year based on their employment anniversary while also receiving additional allowance through a Tenure Based Allowance policy.

Make sure the employee’s Start of Employment date is correct, as both features rely on it.