How to Create an Overtime Leave Policy

Article author
Learning Center Mekari
  • Updated

In general, not all companies make policies to pay employees overtime, but there are also several companies that have overtime policies that are replaced by leaves. On Talenta, you can manage the overtime policy, by accessing the Time Management Setting Menu.

Important
Before you can use this feature, you need to activate it first by contacting the support team at support-hr@mekari.com.

Here are the steps:

  1. Click the“profile” icon in the upper right corner then select Company Settings.

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  2. Click the “Time Management” tab and select Time Off.
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  3. Then select the Overtime leave setting.
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  4. Create a General Policy first by clicking "Edit".
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  5. Complete the required information. Fill in the name of the overtime leave policy in Policy Name, the overtime leave code made in Policy Code, and a short description of overtime leave in Description. And click"Save changes" to save.

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  6. In the Compensation rule list, there is Default Setting rules that you can use, with policies that apply to all employees.
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  7. However, if the company has different overtime leave rules for employees, then you can create more than 1 policy by clicking the "Create compensation rule" button.
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  8. Complete the required information. Fill in the name of the overtime leave policy in the Compensation rule name. 
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  9. Fill in the minimum determining hours of overtime that will be replaced with leave in the Overtime conversion.
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  10. In the Convert overtime to section, select the conversion for determining replacement of overtime with leave such as 0.5 day off, namely converting overtime hours to half day leave and 1 day off, namely converting overtime hours to one day off.
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  11. Select the validity period of the balance during overtime hours on Overtime Expired After.
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    - Month: Determination of the overtime balance that can be saved with expiration after the number of month overtime requests has been approved.
    - Specific Date: Determination of the overtime balance that can be saved with expiration on a certain date and month.
    - No Expiry Date:
    Overtime balances that can be stored will not have an expiration date.
    - Expired Immediately:
    The remaining overtime balance will immediately expire after the approved overtime leave. There are two options in this section:
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    - Expired date based on approval date: To determine the expired leave balance, it will be based on the approval date.
    - Expired date based on request date: To determine the expired leave balance, it will be based on the requested date.
    Scenario:
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    Table explanation:

    - Request date:
    If you set 8 hours of work = get 1 day of overtime leave, by selectingExpired Immediately and selecting Request date, then if submitted.
    1. Request date = March 1, 2022, with a duration of 13 hours.
    2. Request date = March 5, 2022, with a duration of 14 hours.
    3. Request date = March 10, 2022, with a duration of 14 hours.
    4. Approve date on March 15, 2022 (request 1 - request 3)

    Then the system will calculate.
    1. 13 => 1 day (5 hours expired).
    2. 14 => 1 day (6 hours expired).
    3. 14 => 1 day (6 hours expired)
    Total = 3 days

    - Approved date:
    If you set 8 hours of work = get 1 day of overtime leave, by selecting Expired Immediately and selecting Approval date, then if submitted:
    1. Request date = 1 March 2022, with a duration of 13 hours.
    2. Request date = March 5, 2022, with a duration of 14 hours
    .3. Request date = March 10, 2022, with a duration of 14 hours.
    4. Approve date on March 15, 2022 (request 1 - request 3)

    Then the system will calculate:
    (13+14+14)/8 = 41/8 => 5 days (1 hour expired)

  12. Select the validity period for the overtime leave balance in "Time off expired after".
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    No Expiry Date: There is no expiration date for the overtime hours balance.
    - Date: Determining the validity period of the overtime leave balance based on a certain date
    - Month: Determining the validity period of the overtime leave balance after a certain number of months.
    - Day: Determination of the validity period of the overtime leave balance after a certain number of days.

  13. Select a specific employee by clicking "Select employee" to apply the overtime policy.
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  14. You can also tick "Assign default policy for new employee" if you want the overtime policy to apply to new employees.
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    Click “+ Add criteria” to add other criteria. You can choose criteria based on branch, organization, job position, and job level.

  15. Click “Save”.
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  16. Then the overtime policy that you create is as follows.
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  17. You can also edit policies that have been created by clicking"Action" and selecting Edit or delete them by selecting Delete.
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After the overtime leave policy has been made, then you can apply for employee overtime on the Time Management menu. Employees can also apply for overtime through Talenta mobile.