> ## Documentation Index > Fetch the complete documentation index at: https://docs.flowpayroll.ai/llms.txt > Use this file to discover all available pages before exploring further. # Holiday and leave > Record leave, manage holiday accrual, set opening balances, and feed holiday pay into payroll. Flow Payroll tracks holiday entitlement and accrual per employee, calculates holiday pay based on average earnings, and feeds it directly into pay runs. You configure a default policy at organisation level, then override it per employee where needed. ## Organisation holiday policy Before holiday tracking works, you need a holiday policy at the organisation level. Go to **Settings → Holiday** and select **Create holiday policy**. The policy sets the default that all employees inherit unless you create an employee-specific configuration. The policy has two main settings: ### Accrual method | Method | How it works | | ------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | **Percentage of time (hours-based)** | Holiday hours accrue as a percentage of hours worked each pay period. A running pot is maintained. Leave is recorded and deducted from the pot; holiday pay is calculated at the point of payout. | | **Rolled up holiday pay** | Holiday pay is calculated as a percentage of each pay period's earnings and added to every payslip automatically. No pot is maintained. Leave cannot be edited or deleted once processed as rolled up. | For percentage-of-time accrual, pay elements in hours, days, weeks, months, and years are automatically converted to hours (1 day = 8 hours). Fixed and informational pay elements are not included in the accrual calculation. ### Holiday year settings The **accrual reset month** and **reset day** define when the holiday year resets and accruals start afresh. This defaults to 1 January but you can set any date that matches your organisation's leave year. ## Employee holiday configuration Each employee inherits the organisation policy by default. To set a different policy for a specific employee, open the employee record and go to their **Holiday** tab. Select **Create configuration** to override the accrual method, rate, and reset date for that person. To revert an employee to the organisation default, delete their employee-specific configuration. ## Opening balances If you are migrating from another payroll system, you can set an opening balance so that previous accrual history feeds into holiday pay calculations. On the employee's holiday dashboard, select **+ Add Opening Balance** and enter: * **Weeks count** — the number of weeks covered by the historical data (typically 52). * **Base hours** — total hours worked in that period. * **Base gross** — total gross pay in that period. This lets Flow Payroll calculate an accurate average hourly rate from day one. ## Recording leave Once an employee has a holiday configuration, you can record leave from their holiday dashboard. Navigate to the employee record and select the **Holiday** tab. A dialog opens where you enter the leave details. Set the **effective date** (this determines which pay run the leave falls into), the number of **hours**, and an optional **description**. Flow Payroll calculates the holiday pay rate automatically from the employee's recent earnings average. You can override the rate if needed by selecting **Override**. Saving the record pushes the holiday pay into the appropriate pay run. The transaction appears in the employee's holiday history. You cannot edit or delete rolled-up holiday pay once it has been processed through a pay run, as it is embedded in the payslip. ## Holiday pay rate For percentage-of-time accrual, the payout rate is based on the employee's average hourly earnings over a reference period. Flow Payroll calculates this average automatically. The system rate is shown in the **Record Leave / Pay Out** dialog before you confirm. If the hours you are recording exceed the employee's current balance, Flow Payroll warns you but does not block the entry. This allows you to record leave that results in a negative balance if required. ## Holiday history The employee's holiday dashboard shows accruals, leave, and opening balances grouped by holiday year. Each year is collapsible and shows: * **Accrued** — hours added from payroll runs during the year. * **Taken** — hours deducted by leave records. * **Balance** — the closing balance for the year. The summary at the top shows the total accrued, total taken, and remaining hours across all years. ## Where to go next See how holiday pay flows into payslips. Reporting and insights — coming soon. Add and update employee details and settings. How people and pay runs fit together.