1. How does compensating overtime with days off work?
Overtime is calculated based on the employee’s working time records. Whether overtime is accrued depends on the employee’s applicable work schedule and calculation period.
If compensating overtime with time off is enabled for the company, the calculation works as follows:
The system calculates accrued overtime based on the employee’s approved working hours.
Overtime is automatically converted into a time-off balance.
The employee gets a separate Vacations and absences type, for example, "Day off for overtime", with its own balance.
The employee can use the accrued time off by submitting the corresponding vacation or absence application in the usual way.
Overtime calculation and the time-off balance are two separate things.
Overtime is calculated based on the working time calculation applicable to the employee, for example, a monthly or longer calculation period.
The time-off balance, however, is a running total that accumulates from the start date defined in the system. This is usually the employee’s employment start date unless an administrator has specified a different opening balance date. The balance does not automatically reset at the beginning of each month or calculation period.
Conversion rate: For a full-time employee, 8 hours of overtime equals one day off. For a part-time employee, the number of overtime hours required for one day off is calculated according to their workload percentage. For example, with a 0.5 workload, 4 hours of overtime equals one day off.
The conversion rate depends only on the employee’s workload percentage, not on the length of their working day or any other factors.
Example: How is the time-off balance calculated?
|
|
Opening balance | 0 days |
Accrued overtime | 16 hours |
Time-off balance (full-time employee, 8:1) | 2 days |
If the employee submits an application for one day off, the available balance decreases by one day. Approval of the application determines whether the day off may be taken.
Which working hours are included? Only approved working hours are included. Unapproved (pending) working hours do not increase the time-off balance yet. Therefore, the number shown in the working time summary may differ from the number used to calculate the time-off balance.
2. How do I request a day off for overtime?
Open Track > Vacations and absences > Applications.
Select "Day off for overtime" as the type, or the corresponding name used by your company.
Select the date or period.
Submit the application for approval.
Important: The balance shown in My balance already deducts applications you have submitted that are still awaiting approval. In other words, it shows your available balance, taking pending applications into account.
This may not apply to all other views in the system, such as year-end or payroll reports. Approval of the application determines whether the day off may be taken.
Photo guide
Photo guide
3. How do I configure the feature?
The feature must be configured by an administrator or a user with the appropriate permissions.
Enable "Transfer of overtime" in the company settings under Configure > Settings > Features, in the working time-related modules section.
Permission to modify company settings is required.
Create a separate Vacations and absences type under Track > Vacations and absences > Types and select "Based on overtime" as the method of calculation of vacation balance.
This option only becomes available after Transfer of overtime has been enabled in the previous step.
Creating or editing the type requires the appropriate permission to modify vacation and absence types. This permission is role-based and is configured in the user roles/permission levels settings.
Important: Change in standard hours must be set to "No change".
Optional: Set the employee’s opening overtime balance as of the end of a selected date if they have overtime accrued from an earlier period, for example, from a previous system, that needs to be carried over.
If no opening balance is entered, the system automatically starts from zero as of the employee’s employment start date.
If the employee has overtime from an earlier period or has already used time off, first verify which balance should be transferred to the system before setting the opening balance.
Permission to modify both the employee record and the employee’s working time data is required.
Go to Track > Working times > Overtimes.
Admin note: By default, the feature applies to all employees, including inactive employees and employees who have left the company. The system does not automatically exclude them.
To exclude specific employees from the calculation, limit the feature to the relevant employee or employee group.
Go to Configure > Settings > General settings and use "Employees to whom overtime transfer is applied".
Note: Overtime is calculated once per day at midnight rather than in real time. This means that updates in Track > Working times > Overtimes will only be visible the following day.
4. Frequently asked questions
Why is my overtime different from what I calculated myself?
There may be several reasons:
Some working hours have not yet been approved and are therefore not included.
Certain work types or additional compensation types may be excluded from overtime calculations.
The conversion rate for part-time employees differs from that for full-time employees (see section 1).
The total overtime used as the basis for your time-off balance is a running total accumulated from the start date. This differs from a figure such as "Overtime this month", which only reflects the current period.
If the difference is still unclear, contact your manager or administrator.
When is the time-off balance updated?
The balance is updated once per day during the nightly automatic calculation.
It always reflects the status as of the previous evening. Hours worked today will appear no earlier than tomorrow, and only once they have been approved.
Why can’t I see my overtime-based time-off balance?
The feature has most likely not been fully configured for your company. For example, Overtime transfer may be enabled, but the corresponding Vacations and absences type may not have been created.
Contact your administrator.
Does a pending day-off application reduce my balance?
Yes. My balance already deducts submitted applications that are still awaiting approval.
Who should I contact if the calculation seems incorrect?
Contact your manager or administrator and provide:
the relevant period or dates;
the approval status of your working hours;
your own calculation; and
the balance shown in the system.