diff --git a/addons/hr_holidays/models/hr_leave_accrual_plan_level.py b/addons/hr_holidays/models/hr_leave_accrual_plan_level.py
index d9eb4f8762e..6c4b7169261 100644
--- a/addons/hr_holidays/models/hr_leave_accrual_plan_level.py
+++ b/addons/hr_holidays/models/hr_leave_accrual_plan_level.py
@@ -38,7 +38,7 @@ class AccrualPlanLevel(models.Model):
         default='day', string=" ", required=True,
         help="This field defines the unit of time after which the accrual starts.")
     is_based_on_worked_time = fields.Boolean("Based on worked time",
-        help="Only accrue for the time worked by the employee. This is the time when the employee did not take time off.")
+        help="If checked, the rate will be prorated on time off type where type is set on Working Time in the configuration.")
 
     # Accrue of
     added_value = fields.Float(
diff --git a/addons/hr_holidays/models/hr_leave_type.py b/addons/hr_holidays/models/hr_leave_type.py
index 39f41fb5787..fa7fadc4a68 100644
--- a/addons/hr_holidays/models/hr_leave_type.py
+++ b/addons/hr_holidays/models/hr_leave_type.py
@@ -101,8 +101,8 @@ class HolidaysType(models.Model):
         - No validation needed: The employee's request is automatically approved.
         - Approved by Time Off Officer: The employee's request need to be manually approved by the Time Off Officer.""")
     has_valid_allocation = fields.Boolean(compute='_compute_valid', search='_search_valid', help='This indicates if it is still possible to use this type of leave')
-    time_type = fields.Selection([('leave', 'Time Off'), ('other', 'Other')], default='leave', string="Kind of Leave",
-                                 help="Whether this should be computed as a holiday or as work time (eg: formation)")
+    time_type = fields.Selection([('other', 'Worked Time'), ('leave', 'Absence')], default='leave', string="Kind of Time Off",
+                                 help="The distinction between working time (ex. Attendance) and absence (ex. Training) will be used in the computation of Accrual's plan rate.")
     request_unit = fields.Selection([
         ('day', 'Day'),
         ('half_day', 'Half Day'),
diff --git a/addons/hr_holidays/tests/test_accrual_allocations.py b/addons/hr_holidays/tests/test_accrual_allocations.py
index 479a503a604..31c059cf489 100644
--- a/addons/hr_holidays/tests/test_accrual_allocations.py
+++ b/addons/hr_holidays/tests/test_accrual_allocations.py
@@ -352,6 +352,7 @@ class TestAccrualAllocations(TestHrHolidaysCommon):
                 'name': 'Paid Time Off',
                 'requires_allocation': 'no',
                 'responsible_id': self.user_hrmanager_id,
+                'time_type': 'leave',
             })
             leave = self.env['hr.leave'].create({
                 'name': 'leave',
diff --git a/addons/hr_holidays/views/hr_leave_type_views.xml b/addons/hr_holidays/views/hr_leave_type_views.xml
index e8b5c0165a8..b3bd07e721a 100644
--- a/addons/hr_holidays/views/hr_leave_type_views.xml
+++ b/addons/hr_holidays/views/hr_leave_type_views.xml
@@ -69,6 +69,7 @@
                                 'invisible': [('leave_validation_type', 'in', ['no_validation', 'manager']), '|', ('requires_allocation', '=', 'no'), ('allocation_validation_type', '=', 'officer')]}"/>
                             <field name="request_unit" widget="radio-inline"/>
                             <field name="support_document" string="Allow To Join Supporting Document" />
+                            <field name="time_type" required="1"/>
                             <field name="company_id" groups="base.group_multi_company"/>
                         </group>
                         <group name="allocation_validation" id="allocation_requests">