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How to Configure HR in Odoo 18: Setup Guide

DeployMonkey Team · March 24, 2026 7 min read

HR Management in Odoo 18

Odoo 18 provides a comprehensive HR suite with employee management, time off, attendance, expenses, and organizational tools. This guide covers the essential configuration steps for setting up your HR system.

Step 1: Install HR Modules

Navigate to Apps and install the modules you need:

  • Employees (hr) — Core employee management
  • Time Off (hr_holidays) — Leave management
  • Attendances (hr_attendance) — Check-in/check-out tracking
  • Expenses (hr_expense) — Expense reporting and reimbursement
  • Skills (hr_skills) — Employee skills and resume tracking

Step 2: Set Up Departments

Navigate to Employees > Departments:

  • Create departments matching your organization structure
  • Set parent departments for hierarchy
  • Assign department managers for approval chains

Step 3: Create Job Positions

Go to Employees > Configuration > Job Positions:

  • Define roles with descriptions and department assignments
  • Set expected headcount for recruitment planning

Step 4: Create Employee Records

Navigate to Employees > Employees:

  • Fill in work information: department, job position, manager, work location
  • Complete private information: home address, bank account, identification
  • Link to an Odoo user account via the Related User field
  • Use tags for categorization

Step 5: Configure Time Off

Go to Time Off > Configuration > Leave Types:

  • Create leave types (vacation, sick, personal)
  • Set approval requirements
  • Configure allocation types (fixed or accrual)
  • Create allocations for employees

Step 6: Set Up Attendance

Navigate to Attendances > Configuration > Settings:

  • Enable kiosk mode for self-service check-in
  • Configure overtime tracking
  • Set up badge or PIN authentication

Step 7: Configure Expenses

Go to Expenses > Configuration > Expense Categories:

  • Create expense categories (travel, meals, mileage, supplies)
  • Set default costs for fixed-rate expenses
  • Configure approval workflows

Step 8: Organization Chart

The organizational chart is generated from the manager hierarchy:

  • Ensure every employee has a manager assigned
  • View the org chart from any employee record
  • Use departments for organizational grouping

Key Differences from Odoo 19

  • Odoo 19 adds overtime rulesets with configurable rules for attendance
  • Odoo 19 includes homeworking-holiday integration (hr_holidays_homeworking)
  • Core HR features — employees, time off, attendance, expenses — work the same across versions
  • Bank account allocation wizard improvements are v19-specific