Agreed hours are a set of hours you and your employee have agreed upon at the time of employment, or it can also be amended during employment.

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In this article, you will learn how to

An employee is required or expected to work these hours, depending on the employment contract, whether it's a guideline or a contractual agreement.

To set agreed working hours, you will first need to select the working period. This will determine which time frame the employee’s agreed hours will be calculated within.


Creating and setting up a work period

The work period will dictate how you schedule employees and the time frame in which overtime is calculated. It is assigned to a single employee.

Note: Often a work period is the same as your businesses pay period, aligning the two will simplify overtime calculations.

To set up and assign a work period, select an employee to edit. Employment > Working hours section.

In the Working hours section, open the Work period dropdown and select Create a new work period.

  • Weekly, select which day of the week the period will begin

  • 2-weekly, select the start date of the next period

  • 4-weekly, select the start date of the next period

Once a work period is created, it will be saved as a global option. This means you don’t need to create a different work period for each employee, that work period will be available as an option for other employees.

If you try to create a work period that overlaps with one that already exists, we will automatically assign that employee to the existing work period.

Pro tip: the selected work period will determine the starting work week and how overtime will be calculated for employees.


Setting agreed working hours

Assigning working hours to employees will help managers schedule them to their agreed and/or contracted hours.

To set working hours, go to the Working hours section > Hours per work period and select Set total hours per period

Enter the number of hours the employee is required to work. The hours will be calculated within the time frame based on the work period selected.

Example 1 -

Nina's agreed hours are 25 hours per week with a work period starting Monday

You should enter 25 hours in the Total hours per period section and select Weekly, starting Monday for the work period. This means every Monday Nina's hours will reset to 0.

Example 2 -

Cam's agreed hours are 48 hours for a 2-week period, starting Thursday

You should enter 48 hours in the Total hours per period section and select 2-weekly, starting Thursday for the work period. This means every 2nd Thursday Cam's hours will reset to 0.

In some cases, the hours entered can determine when overtime will be applied - see below.


Viewing agreed working hours in the schedule

Your employee's working hours will be visible next to their name within the Schedule tab. An arrow will indicate whether you have over or under scheduled your employee against their agreed working hours.

Simply hover over the (up/down) arrow and a tooltip will appear with information about your employee's agreed working hours. A green tick means you have scheduled them to their agreed hours.

If you've set working hours for your employee but don't see the arrow, you will need to make sure the schedule view is aligned with the starting week of the selected work period for that employee.

For example -

If you have set up an employee's work period to start on Tuesday make sure their location's starting week is also on Tuesday. You can check via Location settings > Scheduling > Week starts with

Pro tip: The schedule view will display the starting week based on the selected location. If the selected location's start week is on Tuesday, your schedule view will start on Tuesday.

You will be warned if that specific shift would exceed your employee's agreed hours for that workweek when adding a shift.


Working hours and overtime
(applies to Part-time Australian industry awards & Hourly 1.5x overtime pay rates)

In Australia, many industry Awards require overtime rates to be applied for any time worked more than an employee’s agreed hours. Here’s an example where you would use it:

You have hired Isabelle as part-time staff to work 30hrs a week, under the General Retail Industry Award (GRIA). The Award states that “For any time worked in excess of the number of hours agreed under clauses 10.5 or 10.6, the part-time employee must be paid at the overtime rate”.


This means that the overtime rate will apply once Isabelle works over 30 hours for the week. The week period is determined by the selected work period.

To ensure overtime is calculated and paid in excess of an employee’s agreed hours, select the checkbox, Pay overtime if they work outside these hours.

Important note: this checkbox is available when selecting a part-time industry Award, in Australia accounts

You may leave it unchecked for the following reasons:

  • under the assigned industry Award, overtime is to be paid following the full-time award rule, which is usually hours worked in excess of 38 or 40hrs. This overtime calculation is already built into the selected award rate.

  • or, you want to use the agreed hours for scheduling purposes only and want overtime to apply following the full-time award rule.

Hourly 1.5 x overtime

When selecting the pay rate Hourly 1.5 x overtime, you have the option to customise the overtime threshold using the Total hours per period field. By default, overtime will be calculated after 40hrs within the work period.

Example

Cam's agreed hours are 64 hours for a 2-week period, starting Thursday

You should enter 64 hours in the Total hours per period section and select 2-weekly, starting Thursday for the work period. This means if Cam works 70 hours within the 2-week period if he will be paid at the overtime rate ($17.36 x 1.5) for the 6 hours.

Important note: this checkbox is available when selecting the Hourly (1.5 x overtime) pay rate


Helpful resources

FAQs

  • I want to pay my employees overtime in excess of the hours I added in, how do I do that? Why can’t I do this?

At the moment, only Australian customers who have part-time employees on the GRIA & FFIA Award will be able to use the overtime capabilities. We will slowly release it out to other awards - we will let you know once we’ve released it to an Award you are using. Full-time and Casual Awards have the overtime calculation built into the Award already, which is 38-40 hours, depending on the Award.

  • Do I have to create a work period for each employee? Can I assign a work period to all employees?

Once you have created a work period for an employee, you can assign the same one to another employee. We will be building the ability to bulk assign soon so that you can assign a work period to multiple employees at once.


You may also be interested in reading Setting a Team Member's Regular Working Hours (Beta).

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