diff --git a/erpnext/hr/doctype/employee_checkin/test_employee_checkin.py b/erpnext/hr/doctype/employee_checkin/test_employee_checkin.py
index b0716be..d9cf4bd 100644
--- a/erpnext/hr/doctype/employee_checkin/test_employee_checkin.py
+++ b/erpnext/hr/doctype/employee_checkin/test_employee_checkin.py
@@ -23,8 +23,7 @@
 	mark_attendance_and_link_log,
 )
 from erpnext.hr.doctype.leave_application.test_leave_application import get_first_sunday
-from erpnext.hr.doctype.shift_assignment.test_shift_assignment import make_shift_assignment
-from erpnext.hr.doctype.shift_type.test_shift_type import setup_shift_type
+from erpnext.hr.doctype.shift_type.test_shift_type import make_shift_assignment, setup_shift_type
 from erpnext.payroll.doctype.salary_slip.test_salary_slip import make_holiday_list
 
 
@@ -183,7 +182,9 @@
 
 	def test_fetch_shift_spanning_over_two_days(self):
 		employee = make_employee("test_employee_checkin@example.com", company="_Test Company")
-		shift_type = setup_shift_type(start_time="23:00:00", end_time="01:00:00")
+		shift_type = setup_shift_type(
+			shift_type="Midnight Shift", start_time="23:00:00", end_time="01:00:00"
+		)
 		date = getdate()
 		next_day = add_days(date, 1)
 		make_shift_assignment(shift_type.name, employee, date)
diff --git a/erpnext/hr/doctype/shift_assignment/test_shift_assignment.py b/erpnext/hr/doctype/shift_assignment/test_shift_assignment.py
index 8759870..048b573 100644
--- a/erpnext/hr/doctype/shift_assignment/test_shift_assignment.py
+++ b/erpnext/hr/doctype/shift_assignment/test_shift_assignment.py
@@ -9,7 +9,7 @@
 
 from erpnext.hr.doctype.employee.test_employee import make_employee
 from erpnext.hr.doctype.shift_assignment.shift_assignment import OverlappingShiftError
-from erpnext.hr.doctype.shift_type.test_shift_type import setup_shift_type
+from erpnext.hr.doctype.shift_type.test_shift_type import make_shift_assignment, setup_shift_type
 
 test_dependencies = ["Shift Type"]
 
@@ -154,19 +154,3 @@
 		shift_type = setup_shift_type(shift_type="Shift 2", start_time="13:00:00", end_time="15:00:00")
 		date = getdate()
 		make_shift_assignment(shift_type.name, employee, date)
-
-
-def make_shift_assignment(shift_type, employee, start_date, end_date=None):
-	shift_assignment = frappe.get_doc(
-		{
-			"doctype": "Shift Assignment",
-			"shift_type": shift_type,
-			"company": "_Test Company",
-			"employee": employee,
-			"start_date": start_date,
-			"end_date": end_date,
-		}
-	).insert()
-	shift_assignment.submit()
-
-	return shift_assignment
diff --git a/erpnext/hr/doctype/shift_type/test_shift_type.py b/erpnext/hr/doctype/shift_type/test_shift_type.py
index b91a7c3..13b890d 100644
--- a/erpnext/hr/doctype/shift_type/test_shift_type.py
+++ b/erpnext/hr/doctype/shift_type/test_shift_type.py
@@ -2,35 +2,288 @@
 # See license.txt
 
 import unittest
+from datetime import datetime
 
 import frappe
+from frappe.tests.utils import FrappeTestCase
+from frappe.utils import add_days, get_time, get_year_ending, get_year_start, getdate, now_datetime
+
+from erpnext.hr.doctype.employee.test_employee import make_employee
 
 
-class TestShiftType(unittest.TestCase):
-	pass
+class TestShiftType(FrappeTestCase):
+	def setUp(self):
+		frappe.db.delete("Shift Type")
+		frappe.db.delete("Shift Assignment")
+		frappe.db.delete("Employee Checkin")
+		frappe.db.delete("Attendance")
+
+	def test_mark_attendance(self):
+		from erpnext.hr.doctype.employee_checkin.test_employee_checkin import make_checkin
+
+		employee = make_employee("test_employee_checkin@example.com", company="_Test Company")
+
+		shift_type = setup_shift_type()
+		date = getdate()
+		make_shift_assignment(shift_type.name, employee, date)
+
+		timestamp = datetime.combine(date, get_time("08:00:00"))
+		log_in = make_checkin(employee, timestamp)
+		self.assertEqual(log_in.shift, shift_type.name)
+
+		timestamp = datetime.combine(date, get_time("12:00:00"))
+		log_out = make_checkin(employee, timestamp)
+		self.assertEqual(log_out.shift, shift_type.name)
+
+		shift_type.process_auto_attendance()
+
+		attendance = frappe.db.get_value(
+			"Attendance", {"shift": shift_type.name}, ["status", "name"], as_dict=True
+		)
+		self.assertEqual(attendance.status, "Present")
+
+	def test_entry_and_exit_grace(self):
+		from erpnext.hr.doctype.employee_checkin.test_employee_checkin import make_checkin
+
+		employee = make_employee("test_employee_checkin@example.com", company="_Test Company")
+
+		# doesn't mark late entry until 60 mins after shift start i.e. till 9
+		# doesn't mark late entry until 60 mins before shift end i.e. 11
+		shift_type = setup_shift_type(
+			enable_entry_grace_period=1,
+			enable_exit_grace_period=1,
+			late_entry_grace_period=60,
+			early_exit_grace_period=60,
+		)
+		date = getdate()
+		make_shift_assignment(shift_type.name, employee, date)
+
+		timestamp = datetime.combine(date, get_time("09:30:00"))
+		log_in = make_checkin(employee, timestamp)
+		self.assertEqual(log_in.shift, shift_type.name)
+
+		timestamp = datetime.combine(date, get_time("10:30:00"))
+		log_out = make_checkin(employee, timestamp)
+		self.assertEqual(log_out.shift, shift_type.name)
+
+		shift_type.process_auto_attendance()
+
+		attendance = frappe.db.get_value(
+			"Attendance",
+			{"shift": shift_type.name},
+			["status", "name", "late_entry", "early_exit"],
+			as_dict=True,
+		)
+		self.assertEqual(attendance.status, "Present")
+		self.assertEqual(attendance.late_entry, 1)
+		self.assertEqual(attendance.early_exit, 1)
+
+	def test_working_hours_threshold_for_half_day(self):
+		from erpnext.hr.doctype.employee_checkin.test_employee_checkin import make_checkin
+
+		employee = make_employee("test_employee_checkin@example.com", company="_Test Company")
+		shift_type = setup_shift_type(shift_type="Half Day Test", working_hours_threshold_for_half_day=2)
+		date = getdate()
+		make_shift_assignment(shift_type.name, employee, date)
+
+		timestamp = datetime.combine(date, get_time("08:00:00"))
+		log_in = make_checkin(employee, timestamp)
+		self.assertEqual(log_in.shift, shift_type.name)
+
+		timestamp = datetime.combine(date, get_time("09:30:00"))
+		log_out = make_checkin(employee, timestamp)
+		self.assertEqual(log_out.shift, shift_type.name)
+
+		shift_type.process_auto_attendance()
+
+		attendance = frappe.db.get_value(
+			"Attendance", {"shift": shift_type.name}, ["status", "working_hours"], as_dict=True
+		)
+		self.assertEqual(attendance.status, "Half Day")
+		self.assertEqual(attendance.working_hours, 1.5)
+
+	def test_working_hours_threshold_for_absent(self):
+		from erpnext.hr.doctype.employee_checkin.test_employee_checkin import make_checkin
+
+		employee = make_employee("test_employee_checkin@example.com", company="_Test Company")
+		shift_type = setup_shift_type(shift_type="Absent Test", working_hours_threshold_for_absent=2)
+		date = getdate()
+		make_shift_assignment(shift_type.name, employee, date)
+
+		timestamp = datetime.combine(date, get_time("08:00:00"))
+		log_in = make_checkin(employee, timestamp)
+		self.assertEqual(log_in.shift, shift_type.name)
+
+		timestamp = datetime.combine(date, get_time("09:30:00"))
+		log_out = make_checkin(employee, timestamp)
+		self.assertEqual(log_out.shift, shift_type.name)
+
+		shift_type.process_auto_attendance()
+
+		attendance = frappe.db.get_value(
+			"Attendance", {"shift": shift_type.name}, ["status", "working_hours"], as_dict=True
+		)
+		self.assertEqual(attendance.status, "Absent")
+		self.assertEqual(attendance.working_hours, 1.5)
+
+	def test_working_hours_threshold_for_absent_and_half_day_1(self):
+		# considers half day over absent
+		from erpnext.hr.doctype.employee_checkin.test_employee_checkin import make_checkin
+
+		employee = make_employee("test_employee_checkin@example.com", company="_Test Company")
+		shift_type = setup_shift_type(
+			shift_type="Half Day + Absent Test",
+			working_hours_threshold_for_half_day=1,
+			working_hours_threshold_for_absent=2,
+		)
+		date = getdate()
+		make_shift_assignment(shift_type.name, employee, date)
+
+		timestamp = datetime.combine(date, get_time("08:00:00"))
+		log_in = make_checkin(employee, timestamp)
+		self.assertEqual(log_in.shift, shift_type.name)
+
+		timestamp = datetime.combine(date, get_time("08:45:00"))
+		log_out = make_checkin(employee, timestamp)
+		self.assertEqual(log_out.shift, shift_type.name)
+
+		shift_type.process_auto_attendance()
+
+		attendance = frappe.db.get_value(
+			"Attendance", {"shift": shift_type.name}, ["status", "working_hours"], as_dict=True
+		)
+		self.assertEqual(attendance.status, "Half Day")
+		self.assertEqual(attendance.working_hours, 0.75)
+
+	def test_working_hours_threshold_for_absent_and_half_day_2(self):
+		# considers absent over half day
+		from erpnext.hr.doctype.employee_checkin.test_employee_checkin import make_checkin
+
+		employee = make_employee("test_employee_checkin@example.com", company="_Test Company")
+		shift_type = setup_shift_type(
+			shift_type="Half Day + Absent Test",
+			working_hours_threshold_for_half_day=1,
+			working_hours_threshold_for_absent=2,
+		)
+		date = getdate()
+		make_shift_assignment(shift_type.name, employee, date)
+
+		timestamp = datetime.combine(date, get_time("08:00:00"))
+		log_in = make_checkin(employee, timestamp)
+		self.assertEqual(log_in.shift, shift_type.name)
+
+		timestamp = datetime.combine(date, get_time("09:30:00"))
+		log_out = make_checkin(employee, timestamp)
+		self.assertEqual(log_out.shift, shift_type.name)
+
+		shift_type.process_auto_attendance()
+
+		attendance = frappe.db.get_value("Attendance", {"shift": shift_type.name}, "status")
+		self.assertEqual(attendance, "Absent")
+
+	def test_mark_absent_for_dates_with_no_attendance(self):
+		employee = make_employee("test_employee_checkin@example.com", company="_Test Company")
+		shift_type = setup_shift_type(shift_type="Test Absent with no Attendance")
+
+		# absentees are auto-marked one day after to wait for any manual attendance records
+		date = add_days(getdate(), -1)
+		make_shift_assignment(shift_type.name, employee, date)
+
+		shift_type.process_auto_attendance()
+
+		attendance = frappe.db.get_value(
+			"Attendance", {"attendance_date": date, "employee": employee}, "status"
+		)
+		self.assertEqual(attendance, "Absent")
+
+	def test_get_start_and_end_dates(self):
+		date = getdate()
+
+		doj = add_days(date, -30)
+		relieving_date = add_days(date, -5)
+		employee = make_employee(
+			"test_employee_dates@example.com",
+			company="_Test Company",
+			date_of_joining=doj,
+			relieving_date=relieving_date,
+		)
+		shift_type = setup_shift_type(
+			shift_type="Test Absent with no Attendance", process_attendance_after=add_days(doj, 2)
+		)
+
+		make_shift_assignment(shift_type.name, employee, add_days(date, -25))
+
+		shift_type.process_auto_attendance()
+
+		# should not mark absent before shift assignment/process attendance after date
+		attendance = frappe.db.get_value(
+			"Attendance", {"attendance_date": doj, "employee": employee}, "name"
+		)
+		self.assertIsNone(attendance)
+
+		# mark absent on Relieving Date
+		attendance = frappe.db.get_value(
+			"Attendance", {"attendance_date": relieving_date, "employee": employee}, "status"
+		)
+		self.assertEquals(attendance, "Absent")
+
+		# should not mark absent after Relieving Date
+		attendance = frappe.db.get_value(
+			"Attendance", {"attendance_date": add_days(relieving_date, 1), "employee": employee}, "name"
+		)
+		self.assertIsNone(attendance)
 
 
 def setup_shift_type(**args):
 	args = frappe._dict(args)
-	shift_type = frappe.new_doc("Shift Type")
-	shift_type.__newname = args.shift_type or "_Test Shift"
-	shift_type.start_time = args.start_time or "08:00:00"
-	shift_type.end_time = args.end_time or "12:00:00"
-	shift_type.holiday_list = args.holiday_list
-	shift_type.enable_auto_attendance = 1
+	date = getdate()
 
-	shift_type.determine_check_in_and_check_out = (
-		args.determine_check_in_and_check_out
-		or "Alternating entries as IN and OUT during the same shift"
+	shift_type = frappe.get_doc(
+		{
+			"doctype": "Shift Type",
+			"__newname": args.shift_type or "_Test Shift",
+			"start_time": "08:00:00",
+			"end_time": "12:00:00",
+			"enable_auto_attendance": 1,
+			"determine_check_in_and_check_out": "Alternating entries as IN and OUT during the same shift",
+			"working_hours_calculation_based_on": "First Check-in and Last Check-out",
+			"begin_check_in_before_shift_start_time": 60,
+			"allow_check_out_after_shift_end_time": 60,
+			"process_attendance_after": add_days(date, -2),
+			"last_sync_of_checkin": now_datetime(),
+		}
 	)
-	shift_type.working_hours_calculation_based_on = (
-		args.working_hours_calculation_based_on or "First Check-in and Last Check-out"
-	)
-	shift_type.begin_check_in_before_shift_start_time = (
-		args.begin_check_in_before_shift_start_time or 60
-	)
-	shift_type.allow_check_out_after_shift_end_time = args.allow_check_out_after_shift_end_time or 60
 
+	holiday_list = "Employee Checkin Test Holiday List"
+	if not frappe.db.exists("Holiday List", "Employee Checkin Test Holiday List"):
+		holiday_list = frappe.get_doc(
+			{
+				"doctype": "Holiday List",
+				"holiday_list_name": "Employee Checkin Test Holiday List",
+				"from_date": get_year_start(date),
+				"to_date": get_year_ending(date),
+			}
+		).insert()
+		holiday_list = holiday_list.name
+
+	shift_type.holiday_list = holiday_list
+	shift_type.update(args)
 	shift_type.save()
 
 	return shift_type
+
+
+def make_shift_assignment(shift_type, employee, start_date, end_date=None):
+	shift_assignment = frappe.get_doc(
+		{
+			"doctype": "Shift Assignment",
+			"shift_type": shift_type,
+			"company": "_Test Company",
+			"employee": employee,
+			"start_date": start_date,
+			"end_date": end_date,
+		}
+	).insert()
+	shift_assignment.submit()
+
+	return shift_assignment