Before You Begin: The following functionality is intended specifically for certain sectors of the Australian market.
The Weekend Double Time Redistribution OT Rule is used to transfer double overtime from weekends to weekdays under certain circumstances. This rule combines aspects of the Daily Overtime Rule and the Weekly Overtime Rule, with different behavior for weekdays, Saturdays, and Sundays.
For example, you can use it to achieve the following pay setup:
- No overtime is due until the total hours (including discounted items such as sick leave) is greater than or equal to the scheduled number of hours for the week (for example, 38 hours).
- On weekdays (that is, from Monday to Friday only) double overtime is payable after overtime has commenced using a threshold determined by a set number of hours (for example, 3 hours) per day from Monday to Friday (either worked or with eligible discount items).
- On Saturday only, double overtime is payable a specified number of hours (for example, 3 hours) after overtime begins.
- On Sunday only, double overtime is payable on any overtime hours.
- Double overtime can be transferred from Saturday and Sunday to weekdays in discount situations (that is, double overtime that would be paid if the leave on Saturday or Sunday was worked can be transferred to work items on Monday to Friday, where possible.
Note: This rule is run at the end of the week or upon employee termination so that it can process data for the entire week. Prior to the end of the week there isn’t enough information available for the rule to adequately consider all possible scenarios.
As well, you can use this rule to handle holiday premiums and holiday overtime that fall above and below the weekly overtime threshold. This is particularly useful for organizations that include superannuation benefits (that is, pensionable pay) in employee pay.
For example, holiday time worked is paid at a rate of 2.5x regardless of whether it’s above or below the weekly threshold. However, only the time that falls below the weekly threshold counts for superannuation. As such, holiday time worked above the weekly threshold is paid with a separate premium and holiday time worked below the threshold is paid as a blended rate.
Setting | Description |
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Number of minutes required for overtime | The number of weekly overtime minutes required before any overtime or double overtime is payable. |
Daily overtime minutes required for double overtime | The number of minutes required to begin earning double overtime. This number of minutes is added to the overtime threshold for each weekday (that is, Monday to Friday only) that either has eligible work or eligible discount items on it to determine when overtime ends and double overtime begins (for example, 180 minutes). |
Saturday double overtime threshold minutes | The number of overtime minutes payable, for Saturdays only, before double overtime begins on a Saturday (for example, 180 minutes). |
Pay Category to assign for overtime Pay code to assign for overtime |
The pay category and pay code under which daily overtime is paid. |
Rate value for overtime | The daily overtime rate. Whether this is an incremental rate above the employee’s regular pay rate, or a multiplier rate like time and a half, depends on what value is selected in the Rate type drop-down list. |
Pay Category to assign for double overtime Pay code to assign for double overtime |
The pay category and pay code that double overtime is paid under. |
Rate value for double overtime | Enter the double overtime rate. Whether this is an incremental rate above the employee’s regular pay rate, or a multiplier rate like time and a half, depends on what value is selected in the Rate type drop-down list. |
Rate type |
Select Multiplier to configure the rule to pay employees a daily overtime rate that is a multiple of their regular pay rate. To pay employees time and a half for daily overtime with a blended rate output, select Multiplier and enter 1.5 in the Rate value for overtime field. Select Incremental to configure the rule to add a dollar amount to the pay rate when paying daily overtime with a blended rate output, or to add a premium at this fixed pay rate for separate premium output. |
Rate output | Select how overtime is paid, either in separate premiums or by changing the pay rate of the actual work detail item. |
Included direct OT pay codes Excluded direct OT pay codes Included direct OT pay categories Excluded direct OT pay categories |
Use these settings to identify the pay items (that is, premiums or work details) which contribute to overtime and on which overtime is directly payable. In certain circumstances, double overtime that would be due on discounted segments can be transferred to these items. |
Note: Instead of using the following settings to apply discounting, it’s recommended that you use the Discount Hours Rule. See Discount Hours Rule. |
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Included discount pay codes Excluded discount pay codes Included discount pay categories Excluded discount pay categories |
Use these settings to identify the pay items (that is, premiums or work details) that contribute to overtime, but on which overtime isn’t directly payable (similar to how items are discounted in the weekly overtime rule). However, double overtime that would be payable for weekend work on the discounted items can be transferred to eligible time on a weekday. For example, an employee works the following hours:
As well, the employee has a 7.6 hour discounted leave item on Saturday. The rule’s duration settings are set up as follows:
As such, the employee receives 6.0 hours of overtime and 4.6 hours of double overtime on the Friday, as well as 11 hours of double overtime on the Sunday. The Friday double overtime is entirely due to a transfer from the Saturday. |
Holiday pay codes eligible Holiday pay codes ineligible Holiday pay categories eligible Holiday pay categories ineligible |
Use these settings to specify which pay codes and pay categories count as holiday items. The rule works with these pay segments as follows:
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Holiday below threshold: pay category Holiday below threshold: pay code Holiday below threshold: rate value Holiday below threshold: rate type Holiday below threshold: rate output |
Use these settings to determine the features of the holiday overtime paid for holiday work details when the time concerned falls below the weekly overtime threshold. |
Holiday above threshold: pay category Holiday above threshold: pay code Holiday above threshold: rate value Holiday above threshold: rate type Holiday above threshold: rate output |
Use these settings to determine the features of the holiday overtime paid for holiday work details when the time concerned falls above the weekly overtime threshold. |
Apply employee average overtime rate |
Select this checkbox to configure the rule to pay out weekly overtime using the value in the employee’s Overtime Rate field, instead of rate values set in the rule. If you select the checkbox and an employee doesn’t have a value configured in the Overtime Rate field in the Compensation and Hours section in the Employment Status tab of the Employment > Employment Settings screen in People, the rule will pay out overtime using the employee’s base rate. Leave blank and the rule doesn’t use the employee’s Overtime Rate. |
Apply min wage based on job worked on |
Select this checkbox and the rule engine checks if an employee has multiple work assignments, and calculates their overtime premium using the minimum wage rate of the work assignment where the overtime hours were worked. This is useful for cases where employees have separate work assignments in two different regions with differing minimum wage rates. Note: This setting is applicable only if you selected AddFractionOfMinimumWage or HybridMultiplierOrMinimumWage in the Rate type drop-down list. |
Holiday Pay Example
Using these settings, administrators can achieve the following pay setup:
Below threshold: If an employee works on the holiday and they're below the weekly threshold, the work detail stays at the base rate and is used for superannuation. As well, a separate premium is paid at 1.5x the rate value to ensure the employee is paid 2.5x pay for the time they worked.
Above threshold: If an employee works on the holiday and they're above the weekly threshold, the work detail is transformed to 2.5x the rate value to ensure that the employee is paid 2.5x their standard rate for the time worked. As well, this amount isn’t included in superannuation benefits.