> ## Documentation Index
> Fetch the complete documentation index at: https://help.tivero.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Key concepts

> Absence type, policy, balance and approval are four different things. See how they work together.

In Tivero, four concepts decide whether and how someone can be absent. You set each of them in a different place.

| Concept            | Answers the question                                                              | Where you set it                                                      |
| ------------------ | --------------------------------------------------------------------------------- | --------------------------------------------------------------------- |
| **Absence type**   | *What kind of absence is this?*                                                   | **Absence types**                                                     |
| **Absence policy** | *Which types does this group of people get, how much, and do they need approval?* | **Absence policies**                                                  |
| **Balance**        | *How many days or hours does this person have left?*                              | Person page → **Balance**                                             |
| **Approval**       | *Who decides on the request?*                                                     | **Settings → Approval processes**, teams, the person page, the policy |

## Absence type

A type describes the kind of absence: for example "Vacation leave", "Medical leave (L4)" or "Planned unavailability" for B2B contractors. The type sets the unit (days or hours), whether it deducts from the balance and whether its details are private. See [Absence types](/en/time-off/absence-types).

## Absence policy

A policy bundles types for a group of people, for example "Employment — 26 days". It sets the allowance (limit), whether the balance may go below zero, and whether requests need approval in one or two stages. Each person has one policy at a time. See [Absence policies](/en/time-off/absence-policies).

## Balance

A balance is the number of days or hours available in a year. It starts from the opening balance, goes down with approved requests and goes back up when an approved request is cancelled. Every change is recorded in the balance history. See [Balances](/en/time-off/balances).

## Approval

Approval decides who reviews a request. By default, it's the person's direct manager. A team, a policy or individual settings can change that. See [How approval works](/en/time-off/approval-process).

## How it works together

<Steps>
  <Step title="A person submits a request">
    They pick an absence type available in their policy and a date range.
  </Step>

  <Step title="Tivero counts working days">
    It counts only working days, based on the work schedule, the confirmed holiday calendar and company days. See [How working days are counted](/en/calendars/how-working-days-are-counted).
  </Step>

  <Step title="Tivero checks the balance">
    If the type deducts from the balance, the summary shows the balance before and after approval.
  </Step>

  <Step title="The request goes for approval">
    The approver approves or declines it. If the type doesn't require approval, the request is approved straight away.
  </Step>

  <Step title="Balance and calendar update">
    Approved days are deducted from the balance and appear in the calendar.
  </Step>
</Steps>

## Related articles

* [Request an absence](/en/time-off/request-absence)
* [Admin quick start](/en/getting-started/admin-quick-start)