Leave and Overtime
To enable more accurate Overtime calculations, leave types have an attribute that allows the leave type to either be counted toward hours worked for the purposes of overtime, or omitted.
By default, this is disabled for all leave types.
When this box is enabled (shown above), this will cause all leave of this type to count toward overtime calculations to determine if overtime should apply.
When the ‘Accrues overtime’ box is checked, leave of this type will count as hours toward overtime eligibility for all employees who have a calculation type that includes overtime - this applies to all calculation types apart from “Fixed hourly rate”:
For further information about assigning employees wages and calculation types, see Wages.
Example
Let's have a look at an example rule where overtime applies when during the week time worked exceeds 38 hours.
For this example, the employee was on Annual Leave (8 hours/day) for the first two days of their working week and then worked 8-hour shifts over the next 3 days.
If the Accrues Overtime box is unchecked, they would not attract any Overtime, as only the 24 hours they worked would be counted.
If the Accrues Overtime box is checked, then the 16 hours of leave will count toward their hours worked, meaning that 40 hours would be counted. The last 2 hours of their last shift would then attract overtime based on the example rule above.
FAQ
Does the 'Accrues Overtime' option apply to Salaried employees?
Yes! If Salaried employees are configured to apply overtime on their employee profile wage object and the leave type has “Accrues Overtime” set, then those hours will be counted toward overtime. You can set salaried employees to overtime by setting an overtime rate on the wage object.
If I set ‘Accrues Overtime’ will this apply to all instances of this leave type including historical leave?
Yes! Setting Accrues Overtime will apply to all historical, current and future instances of the leave type. You can also create a new leave type if you prefer