In the previous video, we calculated overtime automatically for all employees who work beyond planned work hours. But, if an employee works on a Holiday or a Weekly Off day, he deserves to be paid more than his usual pay. This help document describes how you can configure Lenvica HRMS to get this done.
In my company, we pay our employees, double the normal rate for working on Holidays and Off days. Let me show you how to implement this in Lenvica HRMS.
As you see, the employee has worked on a Holiday and a weekly off day this week. But the software has marked the time as overtime as the employee is not scheduled to work on those days.
Now, I want this time to be marked as ‘Overtime on Holiday’, so that, I can pay the employees, double the normal rate for working on holidays.
Step 1: Configure Overtime Settings
I’m going to check this option, and when an employee works on a holiday or a weekly off day, his work time will be marked as ‘Overtime on Holiday’.
Step 2: Re-import Attendance Data
Now, as we want this change to be applied to the attendance data in the past, let’s do a reimport of attendance data.
Step 3: Review overtime under the Attendance Screen
As you see, the work times on Holidays are now marked as ‘Overtime on Holiday’
Step 4: Configure Overtime Formula
My company pays 1.5 times the normal rate for overtime as you see in the formula
But, we need to pay twice the normal rate for overtime on Holidays. Let me show you how to change the formula to get this done.
Step 5: Re-process Payroll
Now, let’s re-process payroll for the employee to check how the change affects the overtime calculation.
As you see, the Overtime Allowance is calculated according to the new formula.
Let’s take a look at the calculation summary to review the values of the components used in the formula.
Let’s also look at the attendance summary for the month to ensure that the values are coming in from the attendance module.
The figures are matching. So, we have successfully configured Lenvica HRMS to pay our employees, double the normal rate for working on holidays and weekly off days.
Frequently Asked Questions
Is overtime applicable on holidays and weekly off days?
Overtime on holidays and weekly off days depends on the labor laws and company policies in your jurisdiction. Employees are usually paid 2 times the regular rate as overtime for working on holidays and weekly off days.
How is overtime calculated on holidays and weekly off days?
Overtime rates for holidays and weekly off days may differ from regular overtime rates. They can be a multiple of the regular pay rate, such as 2 times or more.
Are all employees eligible for overtime on holidays and weekly off days?
Eligibility for overtime on holidays and weekly off days can vary. Some employees may be entitled to higher pay rates or additional compensation, while others may not be eligible based on their job classification or employment agreements.
Can an employer require employees to work on holidays or weekly off days?
In some cases, employers may require employees to work on holidays or weekly off days. However, specific regulations and agreements may dictate notice periods, rest periods, or employee consent.
Can an employer provide compensatory time off instead of overtime pay for holidays and weekly off days?
Depending on the jurisdiction and company policies, employers may offer compensatory time off in lieu of overtime pay for holidays and weekly off days. This practice can vary, so it’s important to refer to specific labor laws and employment agreements.
What should I do if I have concerns about overtime on holidays or weekly off days?
If you have concerns or questions regarding overtime on holidays or weekly off days, it is advisable to review the labor laws, consult your employment contract, or discuss the matter with your employer or human resources department for clarification.
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