Work Groups in Droppah allow you to set up overtime and allowance rules, to accurately capture labour costs for employees working additional overtime hours or on NZ public holidays.
Viewing Overtime and Allowances
The Calendar > Overtime tab provides an easy overview of the additional hours worked and the allowances that will be applied for your staff each week.
Clicking on an entry will bring up the overtime details, including which of your overtime and allowance rules has been triggered and the extra cost associated and which shift and time entry the rule applies to.
You can toggle between the time recorded, shift details, and overtime information via the sections on the left. Time and shift information can be adjusted from these views - if appropriate, overtime and allowance rules will recalculate automatically based on changes made.
Setting Up Overtime and Allowance Rules
To manage overtime or allowance rules, head to Manage > Work Groups and click into the work group you'd like to manage the rules for.
Click + Rule to add a new rule, or click on an existing rule to edit it. When adding or editing a rule, you'll need to complete the following details:
Overtime Rule Name - Set a clear name for the rule, so that you can easily identify it later.
When - Select the requirement that should apply in order for this rule to kick in. Click the buttons below to learn more about the options that are available:
Hours worked on a day that exceed the specified value will be considered overtime.
If the employee has not taken a 30 minute unpaid meal break, all recorded hours past number specified will be considered overtime, until a meal break is taken or the shift ends.
If an employee works a shift that's shorter in duration than the specified number of hours, the difference will be considered overtime.
For example, if the hours specified is 5 and an employee works for 2 hours, the remaining 3 hours will be considered overtime.
If an employee is rostered on for two shifts on the same day, an allowance will be paid if the gap between the shifts falls within the specified durations. The second field can be cleared out if any gap between two shifts on a particular day should trigger the allowance.
Any hours recorded between the two specified times will be considered overtime.
Any hours worked when the employee is not rostered on will be considered overtime.
If an employee works a greater number of hours than the specified value during a week, any hours exceeding this value will be considered overtime.
On - Select whether the rule should apply on particular days of the week or public holidays (note: public holidays are currently only available for NZ customers).
Then - Specify whether the rule being met should result in:
Modify Hourly Pay Rate - the employee's normal hourly rate will be modified for the overtime hours. You can choose between Multiply By (for example, you can set it to pay 1.5x their normal rate) or Add (a set $ amount will be added to their normal rate).
Add Allowance - the employee will be paid a fixed allowance each time they meet the rule.
If you have multiple overtime rules on your work group, you can click and drag them to arrange the order in which they should apply. The order you set is important for ensuring the right rates are applied to any time worked, as any given hour of work can only have one overtime rule applied.
For example, if you have employees who should receive time and a half for working on Saturday, but then double time should kick in if they work more than 4 hours, make sure the rule that will apply to the hours after the 4-hour mark is set as the first priority. This will mean that an employee who works 6 hours on a Saturday, they'll first have 2 hours allocated at double time, and then the next rule will apply to the first 4 hours only.
Frequently Asked Questions
Breaks can be applied in several different ways, and will interact with Overtime accordingly:
- If an unpaid break is recorded using the time clock during a period of Overtime, the break will deduct from that Overtime.
- Unpaid breaks which haven't been recorded using the time clock (i.e. breaks manually added or edited on a shift, or specified via the Default Break Duration in the shift settings) are assumed to start 4 hours into a shift. If this coincides with a period of Overtime, the break will be deducted from that Overtime.
- In cases where the shift is less than 4 hours long, the break is applied to the end of the shift. If this coincides with a period of Overtime, the break will be deducted from that Overtime.
Yes - learn more here: Sending Overtime and Allowances to PayHero
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