Overtime Policy
Table of Contents
The Overtime Policy Setup module allows administrators to define how overtime (OT) is calculated, validated and compensated for employees.
This configuration determines:
- When overtime begins
- How overtime is measured
- Minimum and maximum OT eligibility
- Whether OT is paid or converted to compensatory leave
A properly configured overtime policy ensures fair OT tracking and accurate compensation processing.
The policy summary screen displays all configured overtime settings grouped into categories for easy review and modification.
Policy Configuration Categories-
The overtime policy is divided into four configuration sections:
- OT to be Calculated
- OT Calculation to Begin
- OT Compensation Criteria
- Additional Settings
1. OT to be Calculated
This setting determines when overtime is considered valid for calculation.
Before and After Shift
If selected, overtime is calculated for extra work performed:
- Before scheduled shift start time
- After scheduled shift end time
Only After Shift Ends
If selected, overtime is calculated only for work performed after scheduled shift completion.
This option is suitable when pre-shift work is not considered overtime.
2. OT Calculation to Begin
Defines buffer periods before OT tracking starts.
This prevents minor attendance deviations from being counted as overtime.
Before Shift Starts
Defines how many minutes early an employee must begin work before OT becomes eligible.
This avoids counting insignificant early arrivals.
After Shift Ends
Defines how many minutes after shift completion OT tracking begins.
This prevents minor delays from generating OT records.
3. OT Compensation Criteria
Defines eligibility thresholds for OT compensation.
Minimum OT Hours Required
Specifies the minimum OT duration required before compensation applies.
This avoids processing negligible OT durations.
Maximum OT Hours Required
Defines the maximum overtime duration eligible for compensation in a single calculation cycle.
This prevents excessive OT accumulation beyond organizational policy limits.
4. Additional Settings
Additional OT calculation refinement controls.
Grace Time for OT
Defines a tolerance period ignored during OT calculation.
This allows flexibility for rounding or operational delays. Here’s a clean draft for “Edit Overtime Policy” documentation based on the screenshots and the information you previously shared.
Edit Overtime Policy
The Edit Overtime Policy feature allows administrators to modify an existing overtime policy, update overtime calculation settings and reassign the policy to users when required.
To edit an overtime policy:
Attendance → Overtime Policy → Edit
The edit process is divided into three steps:
- Step 1: Basic Information
- Step 2: Overtime Configuration
- Step 3: Assign Users
Step 1: Basic Information
This section allows you to update the general details of the overtime policy.
Fields Available-
Overtime Policy Name
Enter or update the full name of the overtime policy.
This name is displayed throughout the system for identification.
- Short Name
Enter a shortened reference name for the policy.
Used in compact displays, reports and quick references.
- Description
Add or modify a description explaining the purpose of the policy.
Helps administrators identify the policy scope.
- Select Overtime Type:
Choose how overtime should be compensated.
Leave Compensation
Employees receive overtime as compensatory leave/off days.
Use when employees are rewarded with leave instead of extra hours or payment.
- Hours Compensation
Employees receive additional overtime hours.
Use when overtime is tracked as extra working hours.
- Effective Date
Defines when the policy becomes active.
The policy rules apply from this date onward.
- End Date
Defines when the policy expires.
After this date, the policy becomes inactive unless extended or edited again.
- Next
Click Next to proceed to overtime configuration.
Step 2: Overtime Configuration
This section controls how overtime is calculated.
The system allows administrators to configure:
- OT to be Calculated
Choose when overtime should be counted.
Before and After Shift
- OT Calculation to Begin
Defines the waiting period before overtime starts counting.
Before Shift Starts
Set how many minutes before shift start OT should begin.
Employees working earlier than this threshold qualify for OT.
- After Shift Ends
Set how many minutes after shift ends OT begins.
Useful for ignoring minor delays.
- OT Compensation Criteria
Defines minimum and maximum OT qualification.
Minimum OT Hours Required
The minimum overtime duration required before compensation applies.
Employees must complete at least 1 hour of OT.
- Maximum OT Hours Allowed
Sets the upper limit for overtime compensation.
Prevents excessive OT accumulation.
- Additional Settings
Grace Time for OT
Defines a tolerance period before OT starts counting.
Small overtime durations within this grace period are ignored.
Step 3: Assign Users
This section lets administrators assign the policy to users.
You can filter users using:
Site Selection
Assign users by worksite or location.
- Search by Name
Search for a specific employee.
Useful for quick assignments.
- Select Attributes
Filter users by the custom attributes set by the organisation.
- Select Values
Choose attribute values for targeted assignment.
- User Assignment Panel
The system displays a list of users.
Each user can be:
Assigned
The policy is already applied.
Displayed with Assigned status.
2. Assign
Click Assign to apply the policy to that user.
3. Assign All
Assign the policy to all users shown in the filtered list.
Useful for bulk assignment.
4. Assigned Count
Shows total number of users currently assigned.
5. Save Changes
Click Save Changes to update the overtime policy.
The system will:
- Save edited policy information
- Apply updated OT rules
- Update user assignments
- Activate changes immediately (subject to effective date).