Articles on: Employees

Overtime Settings

Setting overtime rules

The rules governing how an employee accrues overtime can be found in their 'Working Pattern' tab on their Employee Profile.

The options for overtime settings include:

Setting Intraday Overtime Rates - you can choose to set either:
Intraday Time Blocks: pay different overtime rates depending on time of day (eg. pay 1.5x between 17:00pm and 20:00pm, and 2.0x from 20:00pm to 00:00AM) OR
Intraday Hour Blocks: pay different overtime rates depending on hours worked (eg. pay 1.5x after 8 hours worked, and 2.0x after 11 hours worked

Enable overtime above their contracted hours each week
Enable overtime above a set number of hours each day (you can specify if weekly hours must be met first before accruing daily overtime)
Enable overtime after a set time each day

You can also choose to:

Pay overtime for all hours worked on days which aren't 'working days' (according to their working pattern schedule)
Require all period hours to be worked before accruing overtime (bi-weekly/monthly)
Pay one rate for all overtime, or pay a different overtime rate for each day of the week (by ticking 'Specify Overtime Rates Per Day')

Setting Intraday Time Blocks

If you pay varying rates of overtime depending on the day and time of day, you can set Intraday Time Blocks. For example, you may pay a night rate of 1.5x after 6PM on weekdays, but pay all hours at 2.0x on Saturday and Sunday. You can also specify whether an employee must work their contracted hours before receiving overtime.

Setting Intraday Hours Blocks

If you pay varying rates of overtime after a certain number of hours worked each day, you can set Intraday Hours Blocks. For example, you may pay daily overtime at 1.5x after 6 hours Monday to Friday, but on Saturday you pay 1.5x after 4 hours and 2.0x after 8 hours.

Setting overtime above an employee's contracted hours

If your employees receive overtime once they've reached their contracted hours for the week, you can tick 'Enable overtime after X hours a week' where X will be the contracted hours you've entered for them. You can also specify to pay overtime on non-working days (regardless of hours worked during the week) and set different rates per day by ticking 'Specify Overtime Rates Per Day', for example if weekly overtime is paid at time but weekends are paid at double time.

Setting Period Based Overtime

If you require employees to work all of their scheduled hours before overtime is paid, you can tick 'Require period (Monthly/Bi-weekly) scheduled working hours to be met before qualifying for overtime'. This means the employee must work their scheduled hours each day in the period (based on their working pattern) before any overtime hours are counted.

Setting Daily Overtime

If you require a daily overtime threshold that is the same each day of the week, you can tick 'Enable overtime after X hours a day' and set your daily threshold there. You can also require that weekly hours must be worked before daily overtime is calculated. If you require a different daily threshold for each day of the week, specify Intraday Hours Blocks as above.

Updated on: 08/06/2023

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