This article explains how to:

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

To review an employee’s overtime, edit the overtime balance, and convert it to extra time off, you need edit rights to the employee’s Attendance data section.

To pay overtime out, you need edit rights to the employee’s Attendance data and Salary information sections.

Review an employee’s overtime

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.

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 absence types with an accrual 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 absence balance.

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

Keep the extra time off separate from normal leave

1. Create a new, dedicated absence type for the extra time off. For example: Time in lieu.
2. Create an accrual policy for the absence type and set the annual entitlement to zero. Choose the other settings according to your company’s policies.
3. Assign the accrual policy to your employees.
4. When converting overtime, select this absence 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) / (Weeks per year (52.20)) / Employee’s weekly working hours
Or
(Monthly salary) x (12 months) / (Weeks per year (52.20)) / Employee’s weekly working hours