Choose whether paid leave hours are included when calculating overtime

Choose how overtime is calculated with respect to paid leave hours

In your Award settings you can choose whether paid leave hours are included when calculating overtime.

The below guide, steps you through both options using the below example:

  • Adam works a maximum of 38 hours each week.
  • This week he works 30 hours and also has 15 hours of leave, a total of 45 hours.

There are 2 options:

  1. Use worked hours and leave to calculate overtime (Adam receives 38 hours at Ordinary rates (OTE) and 7 hours at Overtime (OT) rates.
  2. Ignore leave when calculating overtime (Adam receives all 45 hours (including leave) at Ordinary (OTE) rates.

 

Switching on worked hours and leave to calculate overtime

By selecting this setting you are asking all hours in excess of the maximum (e.g. 38 hours) to be paid at Overtime rates (OT).

To enable this setting:

  1. Navigate to the hamburger icon > Awards & Agreements, select the relevant Award name and from the sub menu select Rate Labels & Settings
  2. Scroll down to the Award Settings and you'll see a setting called 'Should entitlement hours count towards hours worked for calculating overtime?'
  3. Click on the drop down box and select the 'Use worked hours and leave to calculate overtime' option.
  4. And Save.

Please follow this example:

Using Adam as our example if he works 30 hours and has 15 hours of leave that means that of his 45 total hours, 38 hours will be paid at Ordinary rates (OTE) and 7 hours will be paid at Overtime rates (OT).

  • By selecting this setting you choosing to pay all hours in excess of the maximum (e.g. 38 hours) at Overtime rates (OT).

Ignore leave when calculating over time option
If you choose to have the option 'ignore leave when calculating overtime' this means that the worked hours will only be used when calculating overtime.

To enable this setting:

  1. Navigate to the hamburger icon > Awards & Agreements, select the relevant Award name and from the sub menu select Rate Labels & Settings
  2. Scroll down to the Award Settings and you'll see a setting called 'Should entitlement hours count towards hours worked for calculating overtime?'
  3. Click on the drop down box and select the 'Ignore leave when calculating overtime' option.
  4. And Save.

Please follow this example:

Using Adam as our example if he works 30 hours and has 15 hours of leave that means that of his 45 total hours, all will be paid at Ordinary rates (OTE).

  • By choosing this setting you are selecting that all hours (including leave hours) should be paid at Ordinary rates (OTE).

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