Consecutive OT calculation functionality
Updated
by
Leigh Hutchens
Multiply quota by days ratio
Definition
Overtime calculation considers all agreements in one schedule period. It looks at the Calculation period set in the overtime method and re-calculates it whenever a new agreement is started mid-schedule period. It's specifically built to calculate the overtime around “edges” by the end of an agreement and the start of the new consecutive agreement, where ending an employee agreement on the same date as the schedule period ends and starting the next one when the next schedule period starts would not affect the current calculation.
The period is divided into segments decided by the OT period start and end dates. This also means that the OT periods in the agreements can be different in each agreement.
The only time that the calculation takes agreement information into account is when the calculation period in the OT method is set to Schedule period; otherwise, all information is fetched from the OT method configurations in Account settings > Overtime methods.
The formula
OT = worked hours period - (work time quota * (days in period / no of OT period days))
- Worked hours period (h) - employee specific
- Work time quota (h) - OT method specific
- Days in period (day) - number of days worked in each agreement period
- No of OT period days (day) - calculation period from OT methods
Important to know
The reason for having these two options is that they are far among the most common options. Remember that if the calculation is activated, it will always use the value specified here. The result in the Time card, reports, salary files, etc., will always follow this number.
Moreover, the current KPIs, metrics, statistics, and other information that you can find in the schedule currently use the number of work days specified in the agreement (Agreement > Working hours and periods > Workdays per week). This means that there might be a mismatch between what your local manager sees and how the calculation actually works.
This is a known area where we see future improvements, but this is a way for us to get closer to separating the calculation for absences, for instance (that fetches the data from the agreement) and the OT method calculations.
New configuration
- Activate the Multiply quota by days ratio in the OT method.
- Choose the number of work days that the calculation should use, you can choose between 5 or 7*
- Make sure to activate the OT method by adding it to the agreement template or employee agreement.
How to set it up if you are a current Quinyx user
Unless a period is locked, everything will be calculated that is in an agreement. In this case, our recommendation is:
- New OT methods: Create new OT methods that look the same as your current ones. The only thing that should be changed is the checkbox in the OT method settings that should be active named Multiply quota by days ratio.
- New agreements: Make a copy of the agreements where the consecutive calculations should work. Make sure that the OT methods that you added in the first step are active in the agreement.
- Employee change: Change it for the employee and set it to a start date.
- Period lock: Choose a date when everything looks correct and you want to lock the period.
⚠️ Preconditions for the calculation to work ⚠️
- The agreements must be consecutive. The definition of a consecutive period is when an agreement ends on day n and the subsequent agreement starts on day n+1.
- Example: Agreement 1 would end on August 13th, and the subsequent agreement (Agreement 2) would start on August 14th.
- The checkbox to activate the calculation for Multiply by days quota is only visible if the Work time quota parameter in the OT method is set to either:
- Nominal hours
- Nominal hours part-time
Q&A
Will the calculation work for agreements that have different OT methods?
Yes. The formula is not based on the OT method since it splits them up when the new agreement is applied.
Will the calculation work for additional time as well?
Yes, it works for all the OT methods including overtime, additional time, and minus time.
Will it work if my employees have several agreements and choose to Count all time in the OT methods?
Yes, it will work as it does now, only that the calculation includes all OT hours in the calculation.
What happens if I/an integration changes a parameter in an employee agreement/agreement template?
Nothing happens. The consecutive calculation is only activated if you have an agreement that ends and a new one that starts consecutively. This means that if you, for instance, have an integration that automatically triggers changes of employee rates in their employee agreements, the calculation won't work.
OT total
The OT total is, as its name indicates, a way to sum all the OT outcomes that happen between two (2) consecutive agreements. This means that if we have 3 agreements the calculation will pair OT method type from Agreements 1 and 2, Agreements 2 and 3.
The OT result will only be shown once, independent of the number of agreement changes that happened in the calculation period.
This means that the OT total will be shown with the same logic as we display overtime method results today:
- Additional time/Overtime: Distributed
- Minus time: Minus time is shown at the end of the last agreement in the overtime calculation period, whether there is a punch on that day or not.
Example
Agreement 1 has two overtime methods, for instance, Overtime daily and Overtime monthly where Overtime daily has order number 1 and Overtime monthly has order number 2.
Agreement 2 has the same overtime methods but a reversed order in the agreement.
Result: The “pairing”/summary will happen between Overtime daily from Agreement 1 and Overtime monthly from Agreement 2. This is because they have the first “place” in the OT method order in both agreements and because the calculation is currently limited to only 1 OT method type per agreement (you can still have one overtime type, an additional type, and a minus type on an agreement).
OT method pairing: rules & requirements
- Pairing only happens if there exists a matching OT method in both agreements. Example: this means that it will only pair Additional time with Additional time if the method exists in both agreements that we pair.
- Pairing will happen between two OT methods, one from each agreement. If found and paired, each OT method pair will give the total hours (OT hours from 1st OT method + OT hours from 2nd OT method = OT Total).
- If there is an OT method on one agreement without a pairing method on the other agreement, hence an uneven total number of matching OT methods, then the OT method will calculate OT hours as usual (i.e., the OT total calculation does not apply).
- For the OT methods that do not have any pairing, the old calculation (no total) will be applied.
OT total: Base case
The formula is based on the OT total calculation of 2 consecutive agreements in one schedule period
Part-time employee Suzana has the following setup (same settings in both agreements):
- Agreement 1 ends on June 7th 2023 (Wednesday)
- Agreement 2 starts on June 8th 2023 (Thursday)
- Schedule period: 7 days, starting on Sunday
- Nominal hours in the schedule period: 40h
- Workdays per week: 5 (--> 8 nominal h/day)
OT methods
- Overtime: Working time quota: Nominal hours part-time, calculation period: 7 days, OT total checkbox: Active
- Minus time: Working time quota: Nominal hours part-time, calculation period: 7 days, OT total checkbox: Active
How she worked:
- On Monday June 5th she worked 8h (Agreement 1)
- On Tuesday June 6th she worked 8h (Agreement 1)
- On Wednesday June 7th she worked 4h (Agreement 1)
- On Thursday June 8th she worked 10h (Agreement 2)
- On Friday June 9th she worked 10h (Agreement 2)
- Sum of worked hours = 8+8+4+10+10=40
With OT total logic implementation and checkbox enabled on both methods, she will get neither minus time nor overtime, which is expected since she worked 40 hours that week overall = nominal hours in the schedule period.
Q&A
What happens if my schedule period is 1 day/1 days?
Choosing 1 day or 1 days doesn't affect any of the calculations. This is a logical result of the implementation where a period for overtime methods is never less than 1 day/1 days.
