While setting up leave policies, you can select whether you want a particular leave to be calculated on Calendar days or Working days.
Here is the difference:
Calendar Days: Every day from departure until arrival is counted against your leave balance, even if some days fall on a weekend or public holiday. (Note: Depends on the configuration to include/exclude public holidays) Link an article
Working Days: Only business days are counted as days of leave. Weekends and public holidays (those set up on your company's public holiday calendar) do not count as used leave.
To select either approach for leave calculation, follow the below steps:
Step 1
Under Settings, go to Configuration and click on Leaves and expand your Leave Policies.
Step 2
Click on the pencil icon of your existing leave policy to Edit. You can also add a new leave policy by clicking on Add New.
Step 3
Fill in the details of your leave policy and select whether this particular leave of x number of days is a Calendar day or a Working day policy.
You can include or exclude public holidays from being counted as leave days when using the Calendar Days leave type.
Note: When enabling this feature in existing leave policies, the system will calculate & update total leave days for upcoming leave requests. Affected leave requests will be moved back to the Pending state.
Note: Enabling the Restrict editing of leave days option restricts employees from adjusting the total number of days computed by the selection of the date range.
For example. Suppose an employee wants to go on annual leave for the entire month of November (which has 30 days).
Calendar day calculation - If your Annual Leave Policy is set up on a Calendar day basis, then all 30 days (1st to 30th November) will be counted as the number of leaves taken.
Working day calculation - If your Annual Leave Policy is set up on a Working day basis, and let's say that your company works 5 days a week, and considering there are 4 weekends in the month, then only the working days in the month (i.e. 30 - 8 = 22 days) will be counted as the number of leaves taken.
As per U.A.E. Labor Law, annual leave policies can either be 30 Calendar Days OR 22 Working Days.