How to Create an Overtime Leave Policy through Settings Menu

Article author
Learning Center Mekari
  • Updated

In general, not all companies make policies to pay employees overtime, but several companies 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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    This default setting cannot be deleted.

  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. Then, you can determine Overtime conversion based on Total duration and Minimum hours.
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  10. After that, in the hours and minutes columns, insert the duration. Then choose the conversion for determining overtime replacement with leave, which consists of 0.5 day off, i.e. converting overtime hours to half a day's leave, and 1 day off, i.e. converting overtime hours to a day's leave.
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    - The total duration will be multiplied by the overtime leave balance if the overtime duration is doubled according to the rules.
    Example:
    Initial setting → 2 hour rule → (converts to) 1 day.
    Approved overtime duration → 4 hours.
    Results → 2 days.
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    - Minimum hours will only be converted to 1 day/0.5 days if the approved overtime duration meets the minimum rules.
    Example:
    Initial setting → 2 hour rule → (converts to) 0.5 days.
    Approved overtime duration → 4 hours.
    Results → 1 day.
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  11. If you select Total duration, you can determine the validity period of the balance during overtime hours in the Overtime accumulation period.
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    -  Continuous (No Expiration): Overtime balances that can be stored will not have an expiration date.
    -  Specific date: Determination of the overtime balance that can be saved with expiration on a certain date and month.
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    - Daily: Determination of the overtime balance that can be saved with expiration after the number of day overtime requests has been approved.
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    - Monthly:
    Determination of the overtime balance that can be saved with expiration after the number of month overtime requests has been approved.
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    - No accumulation (expired Immediately):
    The remaining overtime balance will immediately expire after the approved overtime leave. 

  12. If you select Overtime conversion based on Minimum hours, then you cannot determine the Overtime accumulation period.
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  13. Next, select the Time off effective date which consists of Overtime approval date and Overtime request date.
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    - Overtime approval date: To determine the expired leave balance, it will be based on the approval date.
    - Overtime 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 selecting Expired 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).

  14. Select the validity period for the overtime leave balance in "Time off expiration".
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    No Expiry Date: There is no expiration date for the overtime hours balance.
    - Specific Date: Determining the validity period of the overtime leave balance based on a certain date.
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    Daily: Determination of the validity period of the overtime leave balance after a certain number of days.
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    - Monthly: Determining the validity period of the overtime leave balance after a certain number of months.
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  15. Select a specific employee by clicking "Select employee" to apply the overtime policy.
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  16. Determine the employee's name by clicking the "add" icon as follows then select Submit.
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    - To make it easier for you to search for employee names, click "Filter".
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    - Then, you can choose criteria based on branch, organization, job level, job position, and employment status. Then click "Apply filter".
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    - You can also choose all employees by clicking “Select all”.
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  17. Then the following notification will appear stating the number of employees who have been selected. You can also tick "Assign default policy for new employee" to apply general rules to new employees.
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  18. Click “Save”.
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  19. Then the overtime policy that you create is as follows.
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  20. 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.