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Overtime policy - Advance Configuration

1. Basic Info​

Case 1: Basic Policy​

  • Simple configuration
  • Same rules apply for all days

Explanation:
Used when the organization does not need different rules for weekdays, week offs, or holidays.

Case 2: Advanced Configuration Enabled​

Explanation:
Used when different rules are required for different day types.

Switching to Advanced Configuration​

Steps to Enable Advanced Overtime Policy​

  1. Go to Add Overtime Policy

  2. In the Basic Info section, locate:

    • "Advance Configuration" toggle (top-right)

  3. Turn the toggle ON

  4. A confirmation popup appears:

    "Configure Advance Overtime Policy"

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  1. Click "Yes" to proceed

What Happens After Enabling?​

  • Additional tabs become available:
    • Week Day
    • Week Off
    • Holiday
    • Overtime
    • Compensatory Off
    • Who Gets It

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2. Week Day​

Case 1: Overtime Selected​

  • Employee receives overtime pay

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Explanation:
Extra working hours are compensated directly with money.

  • Overtime policy applies based on​

    Selected: Shift Timings

    • Overtime is calculated based on shift start & end time
    • Example: Shift: 9 AM – 6 PM
      • Work before 9 AM or after 6 PM → considered OT

  • Overtime policy applies​

    Selected: Both (Before & After)

    • OT is counted: Before shift start and After shift end
    • Meaning: Flexible OT from both sides

  • Minimum extra working required beyond shift hours​

    • Value:
      • 240 minutes before
      • 240 minutes after
    • Meaning:
    • Employee must work:
    • At least 4 hours before shift, OR 4 hours after shift
    • Important: This is a threshold condition
      • If less than 240 minutes → OT will NOT be considered

  • Extended working beyond overtime should be​

    • Selected: Not Include
      • Extra hours beyond defined OT will NOT be counted
    • Example: If OT rule allows 4 hrs, and employee works 6 hrs
      → Only defined OT is counted, extra ignored

  • Overtime configuration will be​

    • Selected: Fixed
      • OT calculation is fixed (not slab-based)
      • Other Option: Slab Wise - Different rates for different hours

  • Minimum minutes to claim overtime​

    • Value: 120 minutes
    • Meaning: Employee must work at least 2 hours extra
      • Below that → no OT claim allowed

Case 2: Compensatory Off / Pay Selected​

  • Employee receives:
    • Compensatory Off (leave) OR
    • Payment

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Additional Settings:

  • Minimum hours for half/full day
  • Maximum comp-off per day
  • Expiry rules - The compensatory leave balance will expire at the end of calendar year and it will lapse

Explanation:
Provides flexibility to compensate employees with leave instead of pay.

3. Week Off​

Case 1: Copy Same as Weekday = ON​

  • Uses same configuration as weekday

Explanation:
Simplifies setup by applying identical rules.

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Case 2: Copy Same as Weekday = OFF​

  • Separate configuration:
    • Overtime / Comp Off
    • Fixed / Slab
    • Minimum minutes (e.g., 300)

Explanation:
Allows stricter or different rules for weekly offs.

Additional Option​

Convert Overtime to Comp Off​

  • ON: Conversion allowed
  • OFF: Not allowed

4. Holiday​

Case 1: Copy Same as Week Off = ON​

  • Uses week-off rules

Explanation:
Simplifies policy management.

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Case 2: Copy Same as Week Off = OFF​

  • Separate configuration:
    • Minimum minutes (e.g., 240)
    • Compensation type

Explanation:
Allows more flexible or different rules for holidays.

5. Overtime​

Case 1: Same Policy for All Days = ON​

  • One rule for all day types

Explanation:
Simplifies overtime calculation.

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Case 2: Same Policy for All Days = OFF​

  • Different rules per tab

Explanation:
Provides detailed control for each day type.

Payment Options​

  • Fixed: Fixed amount
  • % of Basic: Based on basic salary
  • % of Gross: Based on total salary
  • % of CTC: Based on company cost

Payment Formula Options​

  • % of Gross / 26
  • % of Gross / 30
  • % of Gross * 12 / 365

Explanation:
Defines how daily salary is calculated.

6. Compensatory Off​

Case 1: Compensatory Off (Leave)​

  • Employee gets leave

Options:

  • Calendar / Financial year
  • Monthly / Quarterly / Yearly limits
  • Min/Max leaves per transaction

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Explanation:
Used when employees are compensated with time off.

Case 2: Compensatory Pay​

  • Employee gets money

Options:

  • Fixed or % based
  • Rate (e.g., 300)
  • Payroll mapping

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Explanation:
Used when compensation is monetary instead of leave.

Additional Settings​

Encashable on Separation​

  • ON → Paid during exit
  • OFF → Not paid

Sandwich Rule​

  • ON → Leave between holidays/week-offs counted
  • OFF → Not counted

Restrict Application​

  • ON → Limited usage
  • OFF → Flexible usage

7. Who Gets It​

Case 1: Include Mode​

  • Policy applies to selected employees

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Explanation:
Only selected employees are eligible.

Case 2: Exclude Mode (Not)​

  • Policy applies to all except selected

Explanation:
Useful for excluding specific groups.

Important Notes​

  • Not applicable for:
    • Auto-present attendance
    • Flexible attendance

Explanation:
Ensures policy is applied only where valid.

Summary​

TabCase 1Case 2
Basic InfoSimpleAdvanced
Week DayOvertimeComp Off / Pay
Week OffSame as weekdaySeparate rules
HolidaySame as week offSeparate rules
OvertimeSame for all daysDifferent per day
Comp OffLeavePay
Who Gets ItIncludeExclude

This configuration supports:

  • Flexible overtime calculation
  • Different rules per day type
  • Multiple compensation methods
  • Controlled employee applicability

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