Create Overtime Policy

Summary

In this article

• Before you begin
• Step 1:  Navigate to Overtime Policy Settings
• Step 2:  Create and Configure Overtime Policy
• Step 3: Save and Activate the Policy
• Frequently Asked Questions (FAQ)

Before you begin

• You must have administrative access to Plumm in order to create or modify overtime policies.
• Ensure you are familiar with your company’s overtime regulations and legal requirements.

Step 1. Navigate to Overtime Policy Settings

1. Log in to your Plumm account as an administrator.
2. From the Admin , go to the Attendance section.
3. Select the Overtime option under Attendance
4. Click on Add Overtime to begin creating a new policy.

Step 2. Create and Configure Overtime Policy

1. Title and Description:
   • In the Title field, give your overtime policy a clear name (e.g., "Overtime Policy (Team UK)").
   • In the Description field, describe the policy’s guidelines, including eligibility, approval process, compensation, and compliance with labour laws.
   • You can also add notes specific to different teams or regions.
2. Assign Policy:
   • Assign To: Select who the policy will apply to:
     • All Employees: The policy applies to all employees.
     • Select By Condition: Assign based on specific conditions (e.g., departments, roles).
     • Select By Name: Manually select specific employees.
3. Attendance Hours Selection:
   • Select which attendance hours will be used in overtime calculations:
     • Effective Hours: Overtime is calculated based on total time worked excluding breaks.
     • Gross Hours: Overtime is calculated based on total time, including breaks.
4. Overtime Compensation Method:

• Choose the Compensation Type for overtime. You can choose between:
  • Comp Off: Award compensatory time off in lieu of overtime pay.
  • Pay Off: Award overtime pay (times the overtime rate).

• • Choose whether the comp off credits are added to following leave types (e.g., Hourly Leave, Annual Leave).

• • Daily Overtime: Configure overtime for regular working days, specifying hours worked for compensation.
    • Example: If an employee works between 0.5 and 4 hours, 4 hours of comp off are credited.
  • Weekly Off Overtime: Set rules for overtime worked on weekly days off, e.g., overtime only counts beyond the scheduled shift.
  • Holiday Overtime: Employees receive overtime for all hours worked on holidays, and holidays falling on weekly offs are treated as holiday overtime.

• Daily Overtime: Set rules for overtime compensation for regular working days.
  • If an employee works between 0.5 and 4 hours of overtime, they are compensated with pay based on the overtime pay rates (setup on profile)
  • The calculation of the pay off is based on overtime payrate, total number of overtime hours and the multiplier setup done on overtime policy setup.
  • Pay off = Overtime hours x Overtime payrate x multiplier (1x, 1.5x, 2x etc)

• Weekly Off Overtime: Define how overtime will be compensated for work done on a weekly day off. Overtime is calculated only for hours worked beyond the regular shift.
• Holiday Overtime: Configure compensation for overtime worked on holidays, including how to handle overtime on holidays.

• • Ignore Overtime Compensation: Select this option to disregard overtime if it’s less than specific hours or minutes
  • Approval Required: Enable this setting if you want all overtime requests to be sent to the reporting manager for approval.

Step 3. Save and Activate the Policy

1. Once you’ve configured the policy, click Save to store the policy in the system.
2. After saving, the policy will be live and applicable to eligible employees.

Frequently Asked Questions (FAQ)

1. Who can create or modify overtime policies?