Paid Time Off (PTO) Management

Help Center Hub/Global Payroll /

Paid Time Off (PTO) Management

THE BASICS
GLOBAL PAYROLL
What is Global Payroll?Paid Time Off (PTO) ManagementCost CentersDirect Entity CreationCycles of payroll team members Payroll FilesEmployee access to payslipsAdding new employeesOff-cycle salary changesExpenses ManagementCompany UsersReporting a Leaver Salary ChangesCompany Employee'sHRIS Integrations Onboarding

Lano simplifies time-off tracking by letting employees submit leave requests directly in the platform. Once submitted, requests flow through a streamlined approval process and integrate automatically into the payroll cycle — saving your business time and reducing manual work.

Supported Time-Off Types

Lano supports a wide range of leave types to stay compliant with local employment laws — including:

  • Paid vacation

  • Sick leave

  • Parental leave

  • Bereavement leave

  • Unpaid leave

  • Time off in lieu (TOIL)

The exact time-off types available may vary depending on the employee's country and employment model.

Enabling PTO Management

To get started go to Settings → Time off and toggle Enable time off requests on. Once enabled:

  • All active employees will receive a notification (if they already have a Lano account) or an invitation to join Lano(if they don’t).

  • They can start submitting time off requests right away.

  • Before the leave starts, requests may be updated or cancelled by the employee.

Request Notifications & Approvals

Company users receive email notifications when employees:

  • Submit a new time-off request

  • Update an existing request (requires re-approval)

  • Cancel a request before its start date

Admins and managers can manage all submissions directly in the Time off tab.

You’ll see:

  • Pending requests awaiting approval

  • Approved requests

  • Declined or cancelled requests

Managing Time-Off Requests

For each pending request, you can:

Approve — This action creates one or more pay items, depending on the timing of the leave. Lano automatically applies the correct payroll logic:

  • Current cycle only: If the entire leave falls within the current payroll cycle, a single pay item is added.

  • Partially in the past: The portion overlapping with the current cycle is included now.

  • Partially in the future: Days overlapping the current or previous cycle are included now; remaining days are added to upcoming cycles.

Approved requests include a link to the generated pay item. The pay item also links back to the original time off request for full traceability.


Decline — The employee will be notified. You can also add an optional reason, which will be shared with them.


View Details — See leave type, employee comments, and any uploaded attachments.


Navigate — Switch between multiple requests directly within the review modal.

Disabling the Feature

To disable time off submission:

  • Go to Settings → Time off and switch off the toggle.

  • All previously submitted, approved, or declined time off requests remain visible.

  • Employees will no longer be able to submit new ones.

Additional Notes

  • Employees can update or cancel their requests anytime before the leave start date.

  • Employees can specify decimal values for each requested day off — between 0.1 and 1.0 in 0.1 increments — enabling support for partial day absences when applicable.

  • Reviewers can view the full time-off breakdown by clicking the chevron icon in the Amount line of the request details modal.

  • Approvals and cancellations are reflected in payroll automatically.

Employee Experience

Employees without a Lano account will receive an email invitation to create one. Those who already have an account will receive a notification introducing their new access to submit and track time off requests.

On the Time off page, employee requests are organized into three tabs:

  • Upcoming – shows all approved or pending requests that haven’t started yet

  • Past – includes completed time off that has already occurred

  • Cancelled & declined – lists requests that were either withdrawn or rejected

When submitting an PTO, employee should:

  • Select the leave type from the dropdown.

  • Choose start and end dates.

  • Add a comment or upload supporting documents — this may be mandatory or optional depending on the selected leave type.

  • Review the auto-generated daily breakdown: employee can adjust this breakdown to account for public holidays or request partial days off. Each day can be set using decimal fractions between 0.1 and 1, in 0.1 increments — allowing you to record partial leave days accurately.

Was this answer helpful to you?

Why Lano?

Pricing

Login

Book a demo

Why Lano?

Pricing


Book a demoLogin

© Lano Software GmbH 2025