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Managing time off across different countries can become complex. Many countries have their own legal requirements for leave, pay, and eligibility, and staying compliant requires careful and ongoing attention.
Justworks helps simplify this by providing built-in statutory time off policies for Employer of Record (EOR) employees. These policies are automatically applied and maintained to reflect local labor laws, so you can confidently support your global team.
What Are Statutory Time Off Policies?
Statutory time off policies are legally required leave entitlements defined by a country’s labor laws. Employers must provide these benefits to employees working in that jurisdiction.
Depending on the country, Justworks’ statutory time off policies may include:
- Annual leave (vacation)
- Public holidays
- Sick leave
Each country defines its own rules around:
- How much leave employees are entitled to
- When leave becomes available
- Whether leave is paid, unpaid, or partially paid
- How unused leave is handled
Justworks manages these requirements centrally and translates them into policies applied within the platform.
Important: Statutory time off policies are defined and maintained by Justworks and cannot be edited by admins.
How Statutory Time Off Policies Work in Justworks
Statutory time off policies are designed to be automatically applied and continuously updated based on employee data.
Automatic assignment
Policies are assigned based on key attributes such as:
- Country of employment
- Region or state (where applicable)
- Employee type (EOR employees)
This ensures each employee is matched with the correct legal entitlements for their location.
When time off policies are applied or updated
Policies are automatically assigned or updated when:
- A new EOR employee is hired and has completed onboarding
- Your company hires its first employee in a new country
- An employee’s work location changes
- A new statutory requirement is introduced or updated
These updates help ensure that your team remains aligned with current regulations without requiring manual changes.
Understanding Time Off Policy Structures
Because labor laws vary globally, statutory time off policies may be structured in different ways. Justworks supports multiple approaches to reflect these differences.
Accrual-Based Leave
Employees earn time off gradually over time.
- Example: Vacation accrued monthly based on time worked
- May include accrual caps or start dates
Fixed Allotment
Employees receive a set amount of leave at the beginning of a defined period.
- Example: A fixed number of sick days granted annually
- May be prorated for partial years of service
Balanceless Leave
Some types of leave do not track a running balance but are still governed by rules.
- Common for public holidays or certain protected leave types
- May include limits, eligibility conditions, or usage guidelines
- Does not accrue over time
Note: Different leave types within the same country may follow different structures.
How Leave Entitlements Are Defined
In some cases, total leave entitlements may include multiple components, such as:
- Law-mandated (statutory) minimums
- Additional employer-provided leave
While these may appear as a single time off policy in Justworks, they are tracked in a structured way to support compliance and reporting.
This helps ensure:
- Legal minimums are always met
- Any additional benefits are clearly distinguished
- Accurate records are maintained for audit purposes
Carryover, Expiration, and Tenure Rules
Some statutory time off policies include additional rules that affect how time off is used over time.
Carryover Rules
Unused time off may be:
- Carried into the next period
- Limited to a maximum amount
- Subject to expiration deadlines
Tenure-Based Entitlements
In certain countries, time off entitlements increase based on length of service.
- Example: Additional vacation days after a certain number of years
Payout Rules
In some jurisdictions, unused time off must be paid out when employment ends.
Note: These rules vary significantly by country and are automatically reflected in each policy.
What Admins Can See and Do
In Time Off > Policy, statutory time off policies are visible with the following characteristics:
- Marked as statutory
- View-only access (cannot be edited)
- Labeled by country and leave type
- Automatically assigned to eligible employees
Admins can:
- Review policy details and rules
- View employee assignments
- Track time off usage and requests
- Add supplemental (non-statutory) time off policies (coming soon)
Tip: Additional company policies can complement statutory time off, but cannot replace or reduce required entitlements.
Employee Experience
EOR employees interact with statutory time off policies directly in Justworks.
They can:
- View available time off policies
- Submit time off requests
- Track their time off usage
Requests automatically follow the correct rules based on the employee’s assigned policy.
This removes the need for employees to interpret complex legal requirements on their own.
Key Takeaways
- Statutory time off policies are legally required and vary by country
- Justworks automatically assigns and maintains these policies for EOR employees
- Policies reflect local rules for accrual, pay, and eligibility
- Admins have view-only access to statutory policies
- Employees can request time off normally, with rules applied automatically
- You can offer additional leave benefits alongside statutory requirements
If you need help understanding how statutory time off policies apply in a specific country, contact Justworks Support or explore country-specific guides in the Help Center.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.