Prerequisites
Before configuring leave deductions, ensure the following are set up:
You have the Admin role in Asanify.
At least one leave policy has been created, as you will need to select which leave balances to deduct from.
An attendance policy already exists, or you are in the process of creating one.
Step 1 - Open the Attendance Policy
From the Dashboard, click on the Attendance dropdown in the left navigation bar.
Select the Policies tab.
To configure rules on an existing policy, click on the policy name to open it, then click the Edit button.
To configure rules on a new policy, click + Create Policy and proceed through the steps until you reach the penalization settings (covered in Step 2 and Step 3 below).
Step 2 - Configure Late Arrival Leave Deduction
The late arrival penalization rule is configured in the Shifts step of the policy.
In the policy form, find the section titled "Is employee penalised (LoP/LoL) for arriving late?"
Select "Yes, employee incurs Loss of Leave" to enable leave deductions for late arrivals.
Once selected, configure the rule:
Late day threshold: In the field that reads "For every ___ day(s) of late arrival in a month", enter the number of late days in a month that triggers a penalty. For example, entering 3 means a penalty is applied once an employee arrives late 3 or more times in a month.
Leave days to deduct: In the field that reads "deduct ___ day(s) of leave", enter how many days of leave should be deducted each time the threshold is met.
Buffer Period: In the next card, set how many days after the incident the penalty should be applied. For example, a buffer of 5 days gives employees time to regularize their attendance before the deduction is executed.
Note: The buffer period allows employees to correct their attendance records before a penalty is applied. If the buffer is set to 0, the penalty is applied immediately once the rule is triggered.
When should penalized leaves be deducted from the balance? Choose one of the two options:
Immediately when the rule is triggered — The leave is deducted right after the penalty rule is met and the buffer period ends.
At the end of the payroll cycle — All deductions for the payroll period are calculated and applied together at cycle end.
Leave Balance Deduction Priority: In this section, select which leave policies should be deducted from first. Use the drag handles to reorder the priority list. The system will deduct from the first leave policy in the list; if that balance is exhausted, it moves to the next one, and so on.
Click Add another leave policy to add more leave types to the priority list.
Note: If no leave balance is available for deduction across all selected leave policies, Loss of Pay will be applied automatically.
Step 3 - Configure Work Hour Shortage Leave Deduction
The work hour shortage penalization rule is configured in the Advance step of the policy (Step 3 in the policy creation stepper).
In the policy form, find the section titled "Unmet minimum work hours requirement".
Select "Employee incurs Loss of Leave" to enable leave deductions for work hour shortages.
Once selected, configure the rule:
Track shortage on: The tracking basis is set to Monthly, meaning work hour shortages are calculated and evaluated against the monthly payroll period.
Note: Calculated according to the monthly cycle.
Define Shortage Slabs: Shortage rules use a slab system — you can define different deduction amounts for different ranges of hourly shortfall. For each slab:
From hours: Enter the lower limit of the shortage range (e.g., 2 hours).
Up to hours: Enter the upper limit of the shortage range (e.g., 4 hours). The last slab in the list has no upper limit and applies to all shortages above its lower bound.
Deduct days of leave: Enter the number of leave days to deduct for shortages that fall within this range.
Example: A rule "For shortage above 2 hours and up to 4 hours, deduct 0.5 day(s) of leave" means employees short by 2–4 hours in a month lose half a day of leave.
Click New Rule to add additional slabs for larger shortage ranges.
Buffer Period: Set how many days after the period ends the penalty should be applied before deductions are executed.
Leave Balance Deduction Priority: Select which leave policies should be deducted from and in what order — same as the late arrival configuration. Drag and drop the leave policies to set the priority order.
Click Add another leave policy to include more leave types.
Note: If no leave balance is available for deduction, Loss of Pay will be applied automatically.
Step 4 - Review and Save
After configuring both rules, proceed to the Summary step (or scroll to the bottom in edit mode).
Review the penalization settings to confirm they are correct.
Click Create (for new policies) or Save (when editing) to apply the changes.
The rules will take effect from the next evaluation cycle. Employees assigned to this attendance policy will have their leave balances deducted when the configured thresholds are met.
Additional Information
How Loss of Leave (LoL) Deductions Are Applied
When an employee's late arrival count or work hour shortage exceeds the configured threshold, the system creates a penalization record. During processing, it walks through your configured leave balance priority list in order and deducts from the first leave policy with a sufficient balance. If the employee's balance across all selected leave types is insufficient to cover the full deduction, the remaining amount is automatically converted to Loss of Pay (LoP) and reflected in payroll.
Configuring Both Rules Together
You can configure both a Late Arrival rule and a Work Hour Shortage rule on the same attendance policy. They operate independently — late arrivals are tracked by count (number of late days per month), while work hour shortages are tracked by the total hours missed in the period.
Editing Rules on an Existing Policy
To update penalization rules on an existing policy, open the policy from Attendance > Policies, click Edit, make your changes in the Shifts step (for late arrivals) or the Advance step (for work hour shortages), and save. Changes take effect from the next evaluation cycle — past penalizations already processed are not retroactively modified.
Loss of Pay Option
If you prefer to deduct salary directly instead of leave balances, you can select "Yes, employee incurs Loss of Pay" for late arrivals or "Employee incurs Loss of Pay" for work hour shortages. For Loss of Pay, the deducted days appear directly in the employee's payroll as LOP days.