This activity is used to enter overtime rules. The overtime rule gathers a set of parameters that controls the calculation of overtime, based on the time and attendance clocking by the employees. An overtime rule is linked to an employee record using the rule type, which in turn is assigned to the employee in the Employee Schedules and Rules window.
The number of rules you need to enter depend on the various labor agreements effective in the company. You may also have to define several rules because of the variances in how the overtime rule functions together with each flextime setup. Note that the overtime rule is used only in conjunction with Time and Attendance.
Below is a list of the other windows controlling overtime (refer to the corresponding window descriptions for further details):
Day Type Details (available through the right mouse button options from the Day Types tab)
In this window, you define the overtime intervals and the corresponding wage codes. The overtime wage codes define the cash payment for the hours worked within the specific interval. The wage codes are added to the time card result when the employee performs an overtime clocking. There is a priority setting for the overtime interval in the day type that controls the reduction order of overtime hours, when the scheduled hours are not fulfilled. This priority field is referred to in the overtime rule parameters.
Specified Overtime (in the Wage Codes folder)
In this window, you define wage codes that first summarizes the hours worked within the time interval for the current day, and then distributes these hours on a wage code sequence. For example, first two hours is OT-1, next four hours is OT-2, etc. This is a separate setup not referred to in the overtime rule.
Overtime for Compensatory Time (in the Wage Codes folder)
Some agreements let the employees exchange overtime hours worked, into compensatory leave. This window controls how the overtime wage code from the day type details is exchanged into the corresponding overtime compensatory leave wage code and the balance accrual factor. The overtime rule includes one parameter that refers to this setting.
Absence Parameters (in the Wage Codes folder)
Certain absence periods count as working hours, i.e., the absence accounted for these codes do not reduce overtime hours if they occur in the same day. The window includes a parameter setting controlling this behavior.
The overtime rule includes setup pages for the Daily Overtime calculation, and the Periodical Overtime calculation. The rules controlling the daily calculation are required for all kinds of setups. The periodical overtime only applies to those who require a summary of the presence and absence, before the correct overtime increments can be distributed. The summary can be, e.g., weekly, monthly, and so on.
If the daily calculation results in overtime hours, it can actually be ignored when viewed from the weekly perspective. Normally, when using a periodical approach, the day type details specify wage codes for the overtime intervals that are valued at 1:1, compared to the normal hours. The periodical calculation then adds increment wage codes for recognized overtime that supplements the reimbursement to the employee. This means the employee will receive compensation for all the hours worked, while the overtime compensation will only be for the approved number of overtime hours.
The result of the daily calculation of overtime is presented in the Time Card-Day window. The periodical calculation adds wage codes to the Periodical Calculation window. When transferred to payroll, both the daily and the periodical results are considered.
The various agreement details for different employees should be known. The required details are reflected by the parameters and lists in the overtime rule.
As a result of this activity, you will be able to connect the overtime rule to a rule type. When the rule type is linked to the employee, the employee's overtime will be calculated based on the overtime rules.
Only the General tab will be relevant if you do not use periodical overtime calculation. The parameters on this tab control the automatic calculation of the employee's clocking. That is, if you do not use clocking devices or enter clocking in the Time Card-Day window, you do not have to enter any data on the General tab.
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