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A Workspace Admin can create the time off types that workspace members can select when tracking time off. Within the Time Off Types custom data entity screen in workspace settings, time off types can be configured as either paid or unpaid. Figure 1 - “This is paid time off” setting When a workspace member tracks paid time off, the company will be compensating the member for the time taken. That is typically how holidays and vacation are handled for fulltime employees. Often, those paid time off types are only made available to fulltime employees and not hourly employees or hourly contractors. Within each workspace member’s Member Dashboard, the Workspace Admin can select the types of time off that can be tracked by that member. Figure 2 - Enabling time off types per workspace member When a workspace member tracks paid time off, that time will incur labor cost that will be reflected in the Performance by Member report and similar member-based performance reports.

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Unpaid Time Off

There are certain situations in which a workspace member may need to take unpaid time off. When a member selects an unpaid time off type, Ruddr will automatically adjust how it calculates the utilization and labor cost associated with that time off entry. Impact to Utilization When a member takes unpaid time off, Ruddr automatically adjusts that member’s capacity for the period, such that utilization metrics are not negatively impacted. Since the company isn’t paying for the unpaid time off, Ruddr ignores that capacity with respect to utilization calculations. For example, let’s assume that there are 160 hours of capacity in a month and a member records 80 billable hours and 80 unpaid time off hours. The normal billable utilization calculation is billable hours divided by capacity which would yield a 50% billable utilization rate. But, Ruddr automatically subtracts the unpaid hours from the denominator of the calculation. Thus, the denominator is the original 160 hours of capacity minus the 80 hours of unpaid time off. The resulting 80 hours of “utilization capacity” yields 100% billable utilization for the period. The various utilization reports in Ruddr will show a “Utilization Capacity” column which is simply the member’s original capacity less any unpaid time off taken during the reporting period. Impact to Labor Cost Since the company is not compensating a member for unpaid time off, Ruddr does not accrue any cost for that time on its member-based performance reports. Paid time off will incur labor cost, but unpaid time off will not.