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
- create and set up a work period so that the working hours are calculated within the time frame
- assign agreed working hours to your employees
- determine whether your employee will be paid overtime in excess of their agreed hours (Australia only)
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. People tab > select employee > Edit profile > Employment details > 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 (coming soon), select the start date of the next period
- 4-weekly (coming soon), 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: for Australian customers, the selected work period will determine the starting work week and how overtime will be calculated for employees using industry Awards.
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, select an employee to edit. People tab > select employee > Edit profile > Employment details > Working hours section.
In the Hours per period field, 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.
For example -
If you have set up a weekly work period starting on Monday, and this employee has agreed hours of 25 hours per week, every Monday these hours will refresh to 0
In some cases, the hours entered can determine when overtime will be applied - see below.
Working hours and overtime (Australian customers only)
In Australia, there are many industry Awards that require overtime rates to be applied for any time worked in excess of 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 this employee overtime if they work outside these hours'.
Important note: this checkbox is only available for Australian accounts only when selecting a part-time industry Award.
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.
- 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.