Work Hour Rules/Overtime

[To Administer Schedules and Rules], [About Overtime Rule]

Usage

Use this window to define rules controlling how overtime is calculated based on the time and attendance clocking done by the employees. The definitions in the overtime rule controls how the calculation program manages overtime in a daily perspective and (optional) in a periodical perspective. The daily calculation affects the result presented in the Time Card. The result of the periodical calculation is stored in a separate window. The periodical set-up can also affect the daily calculation. How this is achieved is described below.

The parameters controlling the daily calculation are kept in the General tab in the window. The other tabs are used to control the periodical calculation. If you don't require a periodical reconciliation, only the General tab is applicable. Please, also refer to the activity description for more information about overtime-affecting windows.

Overtime rules controlling the daily calculation

The parameters in the General tab are used by the calculation program, which transfers employee clocking into a Time Card result. Note that the wage codes for overtime are defined by the "day type" and not in the overtime rule.

Overtime rules controlling the periodical calculation

The parameters and definitions in the second and following tabs are used by a separate program that automatically calculates each period after it has been closed (last date has passed). The program summarizes the daily result in the Time Card for the period and adds wage codes to the "periodical calculation" window. The type of wage codes added are (depending on the set-up):

Increment wage codes, are added if the summarized hours (approved absence and presence) exceed the sum of scheduled normal hours (or the average hours) for the period.

Absence wage code, is added if the hours are lesser than the scheduled normal (or average) hours for the period, and a "filling-up" absence code has been defined.

Information wage code, is added if the summarized hours equals the scheduled normal (or average) hours for the period. This is to mark an employee and a period as calculated when there is no overtime increment or absence code to register.

Periodical overtime controlling daily overtime calculation

The daily overtime and the periodical overtime calculations are performed separately. The periodical calculation is based upon the daily overtime results and must therefore be at hand before the period can be calculated. Normally, there is no correlation between the two. However, in some cases the periodical overtime rules also affect the daily calculation. An example is when one category of overtime should only be added to the daily result up to a certain limit that is summarized for the current period. For example, in the day type definition, it is stipulated that the first two hours of overtime in a day is of wage code OT-1. However, the agreement with the employee also says that after five hours of OT-1 within the same week, it should be OT-2 instead. This means that the periodical overtime rules should affect the daily calculation,  otherwise the periodical calculation will be incorrect.    

For a description of each sub tab, follow the link: General, Periodic - Basis, Periodic - Overtime Limits, Periodic - Reduce Order, Periodic - Increments.

Activity Diagrams

Administer Working Hour Rules

Activities

Enter Overtime Calculation Definitions