Compensation rules
Updated
by
Leigh Hutchens
Compensation rules are rules that define a reimbursement an employee is entitled to within Quinyx WFM.
One use case for this is bank holidays where employees should be reimbursed on the bank holiday based on salary types generated in a period before the bank holiday. Another use case is that employees should be reimbursed on the bank holiday based on how many hours they have worked during a period before the bank holiday.
Average of salary types or worked time
Quinyx supports compensation calculation based on two different options. Calculation is either made based on the average of generated salary types for the defined period or worked time during the defined period. The difference is that 8 hours of worked time can produce very different amounts of salary types depending on agreement settings, shift rules and bank holiday rules.
Compensation based on average of salary types
In this example we use the premise that the collective agreement states the following :
An employee should be reimbursed an average of selected generated salary types. This should be based on worked days in the last 4 weeks leading up to the bank holiday.
The employee in this case has worked a total of 15 days in the last 4 weeks prior to the bank holiday. The employee has had the following salary types generated in that period:
- Hourly salary = 100 : (Standard code 1000)
- Hourly salary exceeding schedule = 21 : (Standard code 1001)
- UT-1 additional compensation = 15 : (Standard code 1050)
In the example above we can break it down into the following parts
- Selected salary types
- This allows for defining exactly what salary types should be used in the average calculation. In our example above it has been decided that we only want to compensate the average of the Hourly salary and Hourly salary exceeding schedule (1000,1001).
- NOTE : All salary types in the list will be used as a base for calculation regardless of how they have been generated unless they are generated from an item outside the definition of a working day.
- Last 4 weeks : This is the definition of periodType (options are days, weeks, full weeks) and periodLength (Depending on 'periodType', number of days or number of weeks).
- Punched 15 days : The amount of days to calculate the average on.
Definition of days to calculate average salary types
The working day definition of days to divide the amount of salary types are defined as follows:
- A day with a shift that has one or more punches that generate at least one of the selected salary types.
- A day with one or more punches that generate at least one of the selected salary types.
- Day with one or more absences that generates at least one of the selected salary types.
- NOTE: Default NOT used for calculation of a worked day unless:
- An additional option to define specific absences should be counted as a worked day is used. Then those specific absences count as a worked day.
- Additional option to include all absences that count as worked hours is used. Then all absences that are counted as worked hours will be used for calculations.
- This cannot be used at the same time as specific absences defined to be counted as a working day.
- NOTE: Default NOT used for calculation of a worked day unless:
- A virtual shift that generates at least one of the selected salary types counts as a working day unless:
- Additional option to have virtual shifts NOT count as worked day is used.
Outcome on the bank holiday
The outcome in the example above will be that on the bank holiday, the following salary types and amounts will be generated for the employee regardless if the employee works or not on this day.
- Hourly salary = 6.67 (100 / 15)
- Hourly salary exceeding schedule = 1.4 (21 / 15)
Compensation based on average of hours
An employee should be reimbursed an average of worked hours based on worked time on the same day as the bank holiday, in the last 13 weeks leading up to the bank holiday. But if the employee works on the bank holiday these hours should be deducted from the compensation.
For this example, the bank holiday is on a Friday.
The employee in this case has worked a total of 8 Fridays in the last 13 weeks prior to the bank holiday. The employee is not scheduled to work, or does not work on the bank holiday. And the generated compensation should be salary type 1337. The employee had the following worked time for those Fridays:
- Punched time : 34 hours
- Absence hours : 6 hours
In the example above we can break it down into the following parts
- Worked hours : This shows that we need to base the average calculation based on time calculated as worked hours during the period and not generated salary types.
- Same day as : This means that we only should count the worked hours on those days that are the same weekday as the bank holiday we are defining the compensation on. In this case Fridays
- Last 13 weeks : This is the period for where we should calculate the worked hours in the Fridays within.
- Deduct worked hours : This means that if the calculated reimbursement for this day is 5 hours but the employee works 4 hours on the bank holiday. The employee will be compensated with 1 hour from the compensation logic and the worked 4 hours according to agreement and bank holiday settings.
Definition of days to calculate average hours
The definition of days to divide the amount of worked hours is defined as follows:
- A shift that has a punch where the shift counts as worked hours.
- Day with only a punch.
- Day with an absence.
- NOTE: Default NOT used for calculation of a worked day unless:
- An additional option to define specific absences should be counted as a worked day is used. Then those specific absences count as a worked day if they are Count as worked hours.
- Additional option to include all absences that count as worked hours is used. Then all absences that are counted as worked hours will be used for calculations.
- This cannot be used at the same time as specific absences defined to be counted as a working day.
- NOTE: Default NOT used for calculation of a worked day unless:
Additional options
There are options that can be selected
- allowedAbsences : This option allows for definition of absence types that will count as a worked day in the calculation. If left empty NO absences counts as a worked day.
- fixedNrOfWorkedDays : If this is set it will override the actual number of calculated worked days .
- percentageOfSummedSalaries: if this is set the calculation will be the amount of salary hours * (percentageOfSummedSalaries / 100).
Outcome on the bank holiday
The outcome in example 2 above will be that on the bank holiday the following amount will be generated for the employee.
If the employee does NOT works on the bank holiday and the absence is defined as an absence to count as worked hours. the employee will be compensated with salary type 1337 : 5
If the employee works 4 hours on the bank holiday and the absence is defined as an absence to count as worked hours. the employee will be compensated with salary type 1337 : 1
