This article explains the impact of activating the Consider time tracked during absences of this type as overtime? function. It specifically addresses the following three effects of this function:

1. Crediting hours worked during an absence as overtime
2. Continuing salary payment during an absence for employees with defined hourly salaries
3. Deducting from the total in the attendance balance.

Note
We recommend that you enable this settings option for all absence types that are considered as actual absence periods in your company (example: "Paid vacation" and "Sick leave"), as automatic deficit hours will be generated if the setting option Track automatic deficit hours for days with no time tracked? is active. Automatic deficit hours are meant to only be generated for informative absences or, in other words, absences where an employee is still supposed to work, such as "Remote work".

Crediting working time as overtime

If the Consider time tracked during absences of this type as overtime? function is enabled for an absence type, the working hours recorded during a period flagged as an absence in Personio are automatically counted as overtime.

Please note that overtime must be activated in the work schedules for this function to be available. Find out here how to configure work schedules.

The following figure serves as an example of Overtime Balance view:

The Overtime Balance view gives you an overview of the individual overtime and deficit hours tracked by your employees, as well as the monthly overtime balances.

In this view, you can edit the overtime account as well as pay out overtime or convert it into time off.

Continued Salary Payment During an Absence for Employees on Hourly Salaries

Another effect of the function Consider time tracked during absences of this type as overtime? relates to the continued payment of salaries to employees on defined hourly salaries who have an absence recorded on a work day.

The following requirements must be met:

• Employees are paid an hourly salary (e.g. student interns)
• The option Consider time tracked during absences of this type as overtime? must be enabled for the absence type (e.g. Sickness or Paid vacation)
• The absence must fall on a day that counts as a working day according to the work schedule

If all the above requirements are met, the hours for the day of absence are multiplied by the hourly wage according to the work schedule and recorded as salary in the relevant month.

The following image serves as an example:

In this example, the sick day falls on a working day with a duration of eight hours as recorded in the work schedule. The employee is paid an hourly salary of €18. This results in a total of €144 for the sick day, which is automatically recorded in the salary overview.

Deducting from the total in the attendance balance

Personio compares the scheduled working time with the actual hours worked in the attendance balance to calculate a balance for the current month. Click here for further information about the attendance balance.

The attendance balance also lists all absences within a month, provided that the absences count as times not worked.

All absences within a month are therefore deducted from the attendance balance.