Treating Attendances During Absence Periods as Overtime

 

This article explains the impact of activating the Consider attendance days during absence period 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

You can enable or disable the Consider attendance days during absence period as overtime? function individually for each absence type by going to Settings > Absence.

overtime-absence-period-settings_en-us.png

 

Best Practice Recommendation

We recommend that you enable this function for all absence types that are considered as actual absence periods in your company (e.g. Paid vacation, Sickness and Special leave). This function should be disabled for absence types during which employees actually work (for example, Home office, Business trip and Training).

overtime-absence-period-best-practice_en-us.png

 

Crediting working time as overtime

If the Consider attendance days during absence period 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:

overtime-absence-period-example1_en-us.png

In the example shown, the absence type Paid vacation is recorded for the employee on 23.10. The absence entered also appears in the employee profile in the Attendance tab. Since the option Consider attendance days during absence period as overtime? is activated for the absence type, two hours' working time would be directly credited to the employee's overtime balance in this case. This is why the following note is shown when you enter working hours within the absence period:

overtime-absence-period-tracking-attendance_en-us.png

If this message is confirmed, the hours worked appear in the overtime balance.

 

Continued Salary Payment During an Absence for Employees on Hourly Salaries

Another effect of the function Consider attendance days during absence period 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 attendance days during absence period 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 figures serve as an example:

overtime-absence-period-example2_en-us.png

In this example, the sick day falls on a working day with a duration of two hours as recorded in the work schedule. The employee is paid an hourly salary of €18. This results in a total of €36 for the sick day, which is automatically recorded in the salary overview.

overtime-absence-period-example3_en-us.png

 

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.

overtime-absence-period-attendance-balance_en-us.png

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

 

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