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

In the Settings under Attendance, you can individually activate the counting of overtime for your 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 counting, Personio offers you 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.

For each working hour schedule, it is also possible to enter a contractually agreed number of compensated overtime hours.Overtime worked in excess of this may be compensated on the basis of the monthly salary or converted into vacation days.

1. Calculation of overtime based on weekly working hours

overtime-weekly-hours_en-us.png

If you choose to calculate overtime on a weekly basis, 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

overtime-daily-basis_en-us.png

Contrary to the previous calculation, when calculating overtime on a daily basis without counting the deficit hours, the daily overtime is credited to the overtime account. The 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

overtime-daily-minus_en-us.png

When calculating overtime on a daily basis, you also have the option of activating the option to count deficit hours. This results in overtime and deficit hours being settled in the overtime account. This setting 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 of the week 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 of the week

Target hours

Actual hours Weekly calculation Actual hours 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 hours overtime

As an alternative to converting the overtime into vacation time, the employee can enter a 0 at the start, end, and break, or correspondingly fewer hours for the day on which he or she wants to compensate for the overtime. As a result, the hours that they would have worked on this day according to the working time model are automatically deducted from the overtime balance. To do this, you would have to go to Settings > Attendance and have the overtime calculated based on daily hours in the corresponding working schedule, as well as activate the deficit hours. Please note, however, that the absence is not automatically displayed in the absence calendar.

Can't find what you're looking for?

We are happy to help you! Just write us a message with your questions and we will get back to you as soon as possible.

Submit a request

Comments

0 comments

Article is closed for comments.

    Topics of this article