Configuring Overtime

 

Personio allows you not only to track attendances, but also to record and compensate any overtime worked by your employees.

 

Configuring Overtime Policies

Go to Settings > Attendance to activate overtime tracking for employees’ individual working hour schedules. All hours worked and recorded in excess of the number of hours defined in the working hour schedule count as overtime. Once you have activated overtime tracking by ticking the relevant checkbox, Personio provides for three different calculation options: Overtime can be calculated on a weekly basis, on a daily basis without deficit hours activated, or on a daily basis with deficit hours activated.

You can also enter a contractually agreed-upon number of overtime hours for which there is no separate compensation for each working hour schedule. Any hours of overtime worked in excess of this number can be compensated on the basis of the monthly salary or converted into vacation days.

  

1. Calculation of overtime based on weekly working hours

configuring-overtime-weekly-hours_en-us.png

If you decide to have overtime calculated on the basis of weekly working hours, your employees’ deficit and overtime hours are settled every week. However, the balance of overtime hours cannot be negative; the minimum shown is always 0 hours.

 

2. Calculation of overtime based on daily working hours

configuring-overtime-daily-hours_en-us.png

The calculation method of ‘daily working hours without activation of deficit hours’ differs from the one above in that daily overtime hours are credited to the overtime account, while deficit hours are not recorded. As a result, the overtime balance cannot be negative.

 

3. Calculation of overtime based on daily working hours with activation of deficit hours

configuring-overtime-daily-hours-deficit_en-us.png

When overtime is calculated on the basis of daily working hours, you can also activate the option to count deficit hours. This results in overtime and deficit hours being settled in the overtime account. This setting therefore allows you to record deficit hours (negative balances) in the overtime account.

 

Effects on the Overtime Account

The following example illustrates the three different configurations for a part-time employee with a contract for 20 weekly working hours to clarify the various options for recording overtime.

Day

Target

hours

Actual

hours

Weekly calculation

Daily calculation

Daily calculation incl. deficit hours

Monday

4 hrs

4 hrs

+/- 0 hrs

+/- 0 hrs

+/- 0 hrs

Tuesday

4 hrs

1 hr

-3 hrs

+/- 0 hrs

-3 hrs

Wednesday

4 hrs

5 hrs

+1 hr

+1 hr

+1 hr

Thursday

4 hrs

4 hrs

+/- 0 hrs

+/- 0 hrs

+/- 0 hrs

Friday

4 hrs              

4 hrs            

+/- 0 hrs      

+/- 0 hrs         

+/- 0 hrs               

 

20 hrs

18 hrs

0 hrs overtime

1 hr overtime

-2 hrs deficit

In the above example, the employee worked two hours less during the week than required. However, these deficit hours are only recorded if the third calculation method is applied. When tracking working hours but not deficit hours on a daily basis, the employee is even credited with one hour of overtime.

If an employee works more than the contractually agreed working hours during the week under review, there is no difference between the weekly calculation and the daily calculation with deficit hours: 

Day

Target

hours

Actual

hours

Weekly calculation

Daily

calculation

Daily calculation incl. deficit hours

Monday

4 hrs

4 hrs

+/- 0 hrs

+/- 0 hrs

+/- 0 hrs

Tuesday

4 hrs

1 hr

-3 hrs

+/- 0 hrs

-3 hrs

Wednesday

4 hrs

7 hrs

+3 hrs

+3 hrs

+3 hrs

Thursday

4 hrs

6 hrs

+2 hrs

+2 hrs

+2 hrs

Friday

4 hrs               

4 hrs              

+/- 0 hrs    

+/- 0 hrs

+/- 0 hrs

 

20 hrs

22 hrs

2 hrs overtime

5 hrs overtime

2 hrs overtime

 

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