Please note that this guide is an extension of the Rule Set Overview article.The overtime section of the rule set allows for the entry of rules for when the system will automate the conversion of timesheet costings to the specified overtime loaded rates.
Overtime is split into 2 categories
- The rules that govern when overtime will trigger (Overtime Configuration)
- The percentage or dollar value of the overtime once triggered (Rate Sheets)
This article contains the settings following sections;
Overtime Configuration 01
This section details the bulk of the overtime trigger option that can be applied to timesheets at the point of payroll to generate costing records.
Approve by Default:
Enables the automatic approval of overtime worked. If this is not enabled then you will need to manually choose to pay overtime during the payroll.
Exclude Ordinary Hours:
If an employee has an ordinary hours timesheet entry and this option is on then they will not get any overtime on their ordinary hours and that it does not contribute to cumulative overtime.
RDO Hours:
Enables overtime calculations to include RDO Hours to pay overtime. This will only apply to overtime conditions using Overtime configuration 01.
Exclude Pub. Hol. Leave:
If enabled and an employee has a public holiday leave entry then they will not get any overtime on that leave and that it does not contribute to cumulative overtime.
RTW Hours:
Enables the calculation of overtime payments for timesheets containing ‘recall to work’ (RTW) hours.
Prior to Roster:
If enabled all times that are prior to the shift start, will be treated as overtime calculations within the payroll.
After Roster:
If enabled all times that are after the shift end, will be treated as overtime calculations within the payroll.
Non-rostered shifts:
Activates overtime calculations for timesheets where there are no rostered hours. These are shown as 'None' shifts in the timesheet screen.
Days not ordinarily worked:
Enabling this option will indicate to the system that any timesheet that falls on a day where the employee doesn't have values set in their Employee Details > Working Week, the time will be considered as overtime.
Over Specified Hours per Pay Period:
Activates overtime calculations when an employee cumulatively works beyond a specified total number of hours during a pay period. Enter a value in the Hours Per field and select the period for which it is to apply.
Over Specified Shifts per Pay Period:
Activates overtime calculations when an employee cumulatively works beyond a specified total number of shifts per pay period. Enter a value in the Shifts Per field and select the period for which it is to apply.
Over Ordinary Hours:
If this option is on then the overtime will be accrued once the total of the timesheet entries for the pay period exceeds the ordinary hours defined against the employee's Working hours tab.
Over Specified Days per Pay Period:
Activates overtime calculations when an employee works cumulatively beyond a specified number of days per pay period. Enter a value in the Days Per field and select the period length for which it is to apply.
Over Specified Hours Without a Break:
Activates overtime calculations when an employee has worked a specified number of hours without taking a break.
Under Specified Hours Break between Shifts:
Where a compulsory break is required, enabling this box and entering a number of hours will activate overtime payments for those employees who have not had the appropriate break between shifts.
Periodic OT:
Activates overtime calculations when an employee cumulatively works beyond a specified total number of hours or days during the selected period.
Share rate sheet % Zone:
This option allows rate sheet OT Zones to be shared amongst different OT types. This means that an OT zone can optionally be applied once per day only. For example, if we defined Zone 1 @ 150% for 2 hours, it would only be used once, any additional OT hours for the day – from any type of overtime - would move to Zone 2 @ 200%.
Overtime Configuration 02
This section allows you to add rules for if you wish to trigger overtime if an employee crosses a worked threshold and be specified either on a per shift or daily basis.
The following example, details the settings for triggering the overtime rule if an employee works over 7.6 hours in a single day, on a weekday
Multiple items can be entered for example you may want to indicate that the employee is entitled to overtime for any work done on a Sunday. In this case, the following settings could be applied.
The pre-rule option allows you to set a condition whereby the first rule needs to be satisfied within the period before the standard rule may apply, In the following example the employee will need to work a 10 hour shift in the week first, once this is met any shifts in the week that exceed 7.6 hours will be considered as OT
For example;
If the employee was to work the following no overtime would be triggered as the pre-rule conditon was not met.
Mon = 8 hours
Tue = 8 hours
Wed = 8 hours
However if the employee worked the following
Mon = 8 hours
Tue = 10.5 hours
Wed = 8 hours
Each of the days would go into overtime as the precondition was met on the Tuesday
Mon = 0.4 OT
Tue = 0.5 OT
Wed = 0.4 OT
Overtime Configuration 03
This section is for setting specific times in which overtime should be triggered within timesheets, There are two settings for this 1. triggering before a particular time and 2. after a particular time.
The following example details overtime triggering before 9 am on a weekday
The following example details overtime triggering after 5 pm on a weekday
As with the "Overtime Configuration 02" options, multiple items can be added for the needed conditions.
Overtime Rate Sheets
This section details the payment rates that ClockOn will use if triggered within one of the overtime configuration sections.
The rate sheet item has the following options.
Method:
This determines whether or not the system will use a percentage, flat rate, or a delta rate to either add or subtract based on the employee's hourly rate.
First & at:
The number of hours that if the overtime is within to pay at depending on the selected method.
Next & at:
The number of hours that if the overtime is within to pay at after the first period has past again this depends on the selected method.
Pay rest at:
Any hours remaining after this point will be paid as per the selected method.
Between And:
This details a time-frame in which you wish these pay rules to trigger and apply for, for example you may have condition where prior to midday if they work overtime they get 150% however if the work after midday they get 200%.
These conditions are uncommon we recommend leaving this at midnight values letting the overtime configuration settings handle this.
Days:
Allows you to indicate which days that the overtime rate rule will trigger on.
The following example details how you can set the system to trigger a rate of 150% for the first 2 hours of overtime, 175% for the next 2 hours, and 200% for any time thereafter.
Adding Additional Rate Sheet Listings
You may have noticed the Rate Sheet 1 text on this screen, this indicates that all the rules on this screen are linked to this rate sheet. multiple rate sheets can be added by using the Add button next to this dropdown.
This will give you a seperate area in which you can add additional overtime rate sheet rules seperate from the initial list.
If an additional rate sheet is added, you will have a new option on each of the overtime configuration pages to allow you to indicate which set of payment rules will appy to that condition.
This can be useful as some agreements may say that the employee gets 150% for the first 2 hours for over x hours per week, but a flat 200% if they trigger OT when over 10 hours per week.