The absence tracking toggle allows you to decide whether the Employment Type is tracking Holiday and Sickness absences or not for the people who are added to this employment type.
Please open the Employment Type and Absence Tracking section to decide whether the type needs to track absence or not:
When Absence tracking is OFF for an employment type, then:
Employees will not be displayed Time Off tab and they do not have a possibility to request an absence using 'Book Time off' within the Staff portal like it is described in the article HERE
Employee profile will not have Absences section next to person main details
Admin users can add absences with the 'OTHER' type to the people who have a contract with absence tracking OFF - absence types overview.