Overview:
Previously, overtime was calculated purely based of timing deviation from the work schedule shift times and not by actual total hours worked.
This meant:
This meant:
- Overtime could be triggered even when total hours worked did not exceed scheduled hours.
- Employees could appear to earn overtime without actually working additional time.
Old Overtime Calculations:
- Overtime is calculated when there are clock-in and clock-out records that are out of the work schedule shift start and end times.
Example:
Shift Schedule: Mon-Fri (9.00AM to 5.00PM)
- In the above example of a time sheet, you will see that overtime is calculated total: 5 hours & 10 minutes
- Mon: 0 hours
- Tues: 1 hour
- Wed: 3 hour
- Thu: 10 minutes
- Fri: 1 hour
- In this current logic, overtime was still awarded to this employee on Friday, even though he worked his contractual hours of 8 Hours, solely because he clocked in and out, 1 hour later than his shift start & end time.
New Overtime Calculations:
- Effective 1 Mar 2026, overtime will be calculated based on actual total hours worked - depending on the overtime policy settings configured;
- based on work schedule [All hours worked beyond work schedule shift duration i.e. 8 hours is classified as overtime]
- based on fixed daily or weekly hour thresholds [All hours worked beyond daily or weekly threshold is classified as overtime]
- no overtime [All hours worked are regular, working hours]
Admins will also have the options to set grace period and time-off rounding logic, to ensure more accurate time tracking and pay out of overtime hours.
Still Need Help?:
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