It is a common business requirement, particularly for part time employees, that overtime rates should be applied for any time worked in excess of an employee’s regular working hours.
For example:
You have hired Antonio as part-time staff to work 21hrs 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 Antonio works over 21 hours for the week. The week period is determined by the work period you set in Antonio's employee profile.
Using the Pay Overtime checkbox for part-time staff
To ensure overtime is calculated and paid in excess of a team member's regular working hours, first set up the team member's regular working hours or total hours per period.
Select the checkbox: Pay overtime if they work more than the expected hours for this work period. Remember to click Save before you close the team member's profile.
Important note: this checkbox is available for the following pay rates:
- Australian part time industry awards
- The Hourly + Overtime pay rates
- Any pay rate in any region that is available through the Pay Rate Builder
How does this work?
If the checkbox is selected, the 'Total hours per work period' figure will become the new threshold of overtime hours for the work period.
How does this need to be configured in pay rate builder?
If the checkbox is ticked in the employee's profile, the number of hours will be used as the threshold for any Period Overtime rules, as long as that rule is using the shared setting for overtime as below.
If the pay rule is set with its own value, this will take precedence over the shared setting rule. If the pay rate has no period overtime rule, these settings will have no effect.
How does the Work Period affect overtime calculations?
Important Note: This does not apply to Enterprise accounts. See below for how the Pay Period affects overtime calculations in Enterprise.
If the period overtime rule is set to the default, or you are using a pay rate with overtime in Deputy's pay rate library, the Work Period allows you to overrule the default overtime period.
This can change how the overtime threshold works. If the shared setting value is being used to set the threshold, this is considered to be a per week value, and is multiplied appropriately.
Example 1:
In this example, the overtime period and threshold are both set to the shared setting default. This is also configured as 40 hours in the shared settings of the policy.
The team member has been configured like so:
As the overtime checkbox has been ticked, this will pay for all hours worked more than 24 hours over two weeks.
Example 2:
This is the same example as above, but the checkbox has not been selected.
In this case we will still use the 2 weekly cycle as our overtime period, but use the shared settings value. As this is per week, it will be multiplied by two, to give 80 hours over two weeks.
For Enterprise Accounts:
In Enterprise accounts, the work period is not used. Instead, the Pay Period will be used as the calculation starting point.
Note that Pay Rate Builder supports Weekly, Two Weekly, Four Weekly and Monthly pay periods.
In these cases, if the overtime threshold checkbox is ticked, this threshold will be used instead of the default.
Example:
In the below setup, the team member has a Fortnightly (Two Week) pay period. With the overtime threshold checked, this will trigger as 60 hours over two weeks, even though the work period is one week. It is recommended to align pay periods and work periods where possible.