This article explains how to:  

• Review and adjust your employees' overtime.
• Convert overtime it to extra time off.
• Pay out your employees' overtime.  

Before you start

• To review an employee’s overtime, edit the overtime balance, and convert it to extra time off, you need edit permissions to the employee’s Attendance data section.
• To pay overtime out, you need edit permissions to the employee’s Attendance data and Salary information sections.
• You can't adjust your employees' overtime in bulk, import overtime adjustments, or reset the overtime balance automatically on a specific date.

Overtime balance recalculation cut-off point

By default, our system recalculates the overtime balance up to 1 November 2025. This means that any changes that impact the overtime balance only affect it up to this cut-off date. You can’t deactivate this setting or edit the cut-off point.

This is to limit the frequency and impact of unintentional changes, ensuring overtime balance accuracy. The overtime balance recalculation cut-off date applies to changes due to:

• The creation, import (including those via API), or edit of attendance and time off entries.
• The edit and assignment of work schedules and time off types.
• The edit of hire and termination dates.
• The creation or edit of public holidays.
• The update of an employee leave status.

The system still applies any manual adjustments of the overtime balance, regardless of their effective date. You can also pay out or convert overtime past the cut-off point.

If you need to recalculate the overtime balance past the cut-off point:

• For small adjustments and for single employees, use a manual adjustment.
• For more extensive adjustment or for many employees, get in touch with us.

Review your employees' overtime

Single employee

To see an overview of an employee’s overtime balance, follow these steps:

1. Go to the relevant employee profile > Attendance.
2. Click the title of the overtime widget on top of the timesheet.
3. Here, you can see a monthly overview of overtime and deficit hours. If the employee has more deficit hours than overtime, the balance will be negative.
4. If the employee’s work schedule contains a monthly overtime cliff, click the balance on the right of each month to see how it impacts the calculation.

Multiple employees

If you want to review the overtime balance for multiple employees at the same time, follow these steps:

1. Go to Organization > People List.
2. At the top of the list, click Columns and type "Overtime balance".
3. Select the column.
4. The overtime balance column appears on the right. It shows all employees you have access to. You may need to scroll to the right to see it. 

Adjust the overtime balance

You can add or subtract overtime manually to an employee’s balance. Follow these steps:

1. In the employee's overtime overview, click Adjust balance.
2. Choose whether to add or deduct overtime.
3. Type the amount of overtime to add or deduct.
4. Optional: Add a date for the adjustment.
5. Confirm the adjustment.
6. The activity appears in the overview as a balance adjustment.

To delete the manual adjustment, click the bin icon on its right, and confirm.

Convert overtime to extra time off

You can only convert overtime to extra time off to time off types with a time off policy assigned to the employee. Follow these steps:

1. Optional: if you want to keep extra time off separate from normal leave, follow these instructions before continuing.
2. In the employee's overtime overview, click Compensate overtime.
3. Fill out the compensation details, including the conversion factor.
4. Confirm the compensation.
5. The conversion now appears in the overtime overview, and in the employee’s time off balance.

To delete the conversion, click the bin icon on its right, and confirm.

Keep time in lieu separate from normal leave

1. Create a new, dedicated time off type for the extra time off. For example: Time in lieu.
2. Create a time off policy for it and set the annual entitlement to zero. Choose the other settings according to your company’s policies.
3. Assign the time off policy to your employees.
4. When converting overtime, select this time off type.

Extra time off conversion factor

To calculate the additional time off the employee receives, the system multiplies the amount of overtime to convert by the conversion factor.

The default factor is 1. This means that the employee gets 1 day off every 8 hours of overtime. With a factor of 2, the employee needs 4 hours of overtime to get a day off, and so on.

The system applies the extra time off the same way to all employees, regardless of their daily work hours. If an employee works 4 hours a day, they still receive a full day off.

Pay out overtime

1. In the employee's overtime overview, click Compensate overtime.
2. At the top of the window, select Overtime pay.
3. Fill out the compensation details. Read more about the conversion formula and hourly rate below.
4. Confirm the compensation.
5. The pay-out now appears in the overtime overview, and in the employee’s Salary tab.

To delete the payout, click the bin icon on its right, and confirm.

Overtime pay-out conversion formula and hourly rate

To calculate the additional payout, the system uses this formula:

(Amount of hours) x (Hourly rate) x (Conversion factor)

If the employee is on an hourly salary, the system uses that as the hourly rate. If the employee is on a fixed annual or monthly salary, the system uses this formula to calculate the rate per hour:

(Annual salary / 12 months) x 3 months / 13 weeks / employee’s weekly working hours
Or
Monthly salary x 3 months / 13 weeks / employee’s weekly working hours