How do I define overtime policies?

Overtime policies define how accumulated overtime is handled: whether it remains unchanged, whether the working hours balance is reset, or whether hours are deducted from the balance.

Contents

• Which overtime policies are available?
• Which billing periods can be selected?
• Assign an overtime policy to a user
• Set the deduction type in the work schedule

Which overtime policies are available?

TimeTac offers the following policies:

No policy

No automatic overtime policy is active. Overtime remains until it is manually corrected, paid out, or compensated with time off.

All-in

Accumulated overtime is deleted at the end of the defined interval, and the working hours balance is set to zero. Overtime that has already been posted or paid out is not affected.

Overtime allowance

A fixed number of hours is deducted from the working hours balance at the end of each interval. The work schedule defines whether the balance may become negative or not.

Reset working hours balance

The balance is reset to zero at the end of the defined billing period, regardless of whether it is positive or negative.

Which billing periods can be selected?

• Weekly
• Monthly
• Quarterly
• Yearly

Assign an overtime policy to a user

1. Open the user's profile and navigate to the Employment tab.
2. Navigate to the Overtime policy section.
3. Select the desired policy: No policy, All-in, Overtime allowance, or Reset working hours balance.
4. Select the interval: Weekly, Monthly, Quarterly, Yearly, or no interval.
5. If you selected Overtime allowance, enter the number of hours.
6. Enter the start date from which the policy should apply.
7. Click Save.

Set the deduction type in the work schedule

You define the deduction type for overtime in the work schedule.

1. Navigate to Company > Work schedules in the side menu.
2. Click the three-dot menu on the desired work schedule and select Edit.
3. Open the Overtime policy tab.
4. Select the desired deduction type:
   • Overtime policy cannot be negative.
   • Overtime policy can be negative.
5. Click Save.

Example: Cannot be negative

Rule: At the end of the month, ten hours are deducted from the balance. The balance must not become negative.

A user has a balance of +6 hours at the end of the month (five overtime hours this month, one hour carried over). The rule deducts ten hours: +5 − 10 = −5. Since a negative balance is not allowed, the balance is set to one hour. At most as many hours are deducted as were actually worked as overtime.

Example: Can be negative

Rule: At the end of the month, ten hours are deducted from the balance. A negative balance is allowed.

A user has a balance of +6 hours at the end of the month. The rule deducts ten hours: +6 − 10 = −4. The balance is then −4 hours. The full deduction is applied even if the balance becomes negative.

You now know how to define and assign overtime policies in TimeTac, set the billing period and deduction type, and understand how each policy affects the working hours balance.