If your company has a single location there is no need to add any locations. If your company has multiple locations, different company holidays and leave approval paths for other locations add the different location details here. Users that are linked to the location will inherit the leave types, polices and holiday types for the location if not customized for the users individually.
The first location when you signup for a new account is called as Primary Location. You can edit and give a name to this location like the office name or city name.
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