Overtime rulesets

Odoo's Attendances app allows for the configuration of overtime rules to determine if and when employees earn overtime, and at what rate.

Important

No overtime rulesets come preconfigured in the Attendances app; all overtime rulesets must be created.

Create an overtime ruleset

To create an overtime ruleset, navigate to Attendances app ‣ Configuration ‣ Overtime Rulesets. Any existing overtime rulesets appear in a default list view, and display the ruleset Name, the Rate Mode, and the Rules Count (the number of rules configured for the ruleset).

Click the New button, and a blank Rulesets form loads. Enter the following information on the top half of the form:

• Ruleset Name: Enter a name for the ruleset.

• Rate Combination Mode: Using the drop-down menu, select how the overtime rate is calculated. The options are:

  • Maximum Rate: The highest rate is used to determine the overtime pay. For example, if there are two available rates of 150% and 125%, the highest available rate, 150%, is applied.

  • Sum of all rates: A combination of all applicable overtime rates is used to calculate the overtime pay. Odoo calculates the rate by adding the extra pay rates (above 100%).

    Example

    Two overtime rates are cteated, one for 150% and the other for 120%. The Sum of all rates option is selected. The overtime rate applied is 170%.

    The calculation used to determine this rate is: 100% (baseline) + (150-100)% + (120-100)% = 170%.

• Description: Enter a brief description for the ruleset.

• Country: Using the drop-down menu, select the country the ruleset applies to.

Overtime rules

Once the main information of the ruleset is created, the next step is to add the individual rules. Click Add a line at the bottom of the Overtime Rules tab of the Ruleset form, and a Create Rule pop-up window loads.

Enter the Rule Name in the corresponding field. Next, enter the following information in the Definition tab:

Condition section

This section determines what logged time counts as overtime. Rules can be based on quantity or timing.

Based on quantity

If overtime is accrued when the total logged hours for a day or week exceed what is expected, select the Quantity radio button for the The rule is based on field. Configure the rest of the fields in the Condition section as follows:

• If the worked hours on a (Day/Week) differs: First, select if the total expected time is calculated by the Day or Week, using the drop-down menu. Next, select if the difference is compared:

  • from the amount defined on the contract: Select this option if the overtime is based on the working hours defined on the employees contract.

  • from a specific duration: Select this option if the overtime is based on a specified amount of time. If this is selected, a Duration to exceed field appears. Enter the number of hours in an HH:MM format the employee must exceed each Day or Week, depending on what is selected in the If the worked hours on a (Day/Week) differs field.

• With a tolerance in favor of the employer of: This field defines a buffer of time that is not considered overtime. Enter the amount in a HH:MM format. For example, if this field is set to 00:15, and an employee logs an 8 hour and 13 minute workday, the extra 13 minutes is not counted as overtime.

• With a tolerance in favor of the employee of: Enter the amount of extra time given to an employee as overtime, in a HH:MM format. For example, if this field is set to 00:15, and an employee logs an 8 hour and 48 minute workday, the missing 12 minutes are counted as overtime, for a total of one full hour of overtime (instead of only 48 minutes of overtime).

Based on timing

If overtime is accrued only on specific days or at specific times, select the Timing radio button for the The rule is based on field. Configure the rest of the fields in the Condition section as follows:

• With a tolerance in favor of the employer of: This field defines a buffer of time that is not considered overtime. Enter the amount in a HH:MM format. For example, if this field is set to 00:15, and an employee logs a 40 hour and 13 minute workweek, the extra 13 minutes is not counted as overtime.

• With a tolerance in favor of the employee of: Enter the amount of extra time given to an employee as overtime, in a HH:MM format. For example, if this field is set to 00:15, and an employee logs a 40 hour and 48 minute workweek, the missing 12 minutes is counted as overtime, for a total of one full hour of overtime (instead of only 48 minutes of overtime).

• If the employee works: Click the radio button to select the period of time defined for accruing overtime. The options are:

  • On any working day: Select this option if overtime is accrued if an employee works outside of a specified set of hours for any working day. When selected, a Between field appears, listing 00:00 and 24:00 hours, by default. Adjust the working times in an HH:MM for both fields, defining the specific working hours an employee earns overtime for.

    Example

    The Between hours are set to 09:00 and 17:00. An employee works from 7:00 AM until 4:00 PM. The employee earns 2 hours of overtime, for the hours between 7:00 AM and 9:00 AM.

  • On any non-working day: Select this option if overtime is accrued if an employee works outside of a specified set of hours for any non-working day. When selected, a Between field appears, listing 00:00 and 24:00 hours, by default. Adjust the working times in an HH:MM for both fields, defining the specific working hours an employee earns overtime for.

  • When employee is off: Select this option if overtime is accrued on any day the employee is not scheduled to work.

  • Outside of a specific schedule: Select this option if overtime is accrued when employees work outside of a selected working schedule. When selected, a Schedule field appears. Using the drop-down menu, select the working schedule used to determine overtime.

Action section

Once the criteria set in the Condition section are met, the Action section determines how any approved extra time is handled.

• Pay extra hours: Enable this checkbox if overtime hours are paid out. If enabled, a percentage field appears to the right of the checkmark, populated with the rate defined on the overtime work entry type.

• Work entry type to use: This field only appears if the Pay extra hours field is enabled. Using the drop-down menu, select what work entry type is created for the overtime. By default, Overtime Hours is selected.

• Give back as time off: Enable this checkbox if the overtime should be converted to time off, instead of being paid out.

Example overtime ruleset

A United States-based company wants to grant time and a half overtime to all employees who work more than their 40-hour work week, or work on any non-working day. To configure this, they create a ruleset called Overtime, with a Rate Combination Mode set to Maximum Rate. The country is set to United States, and a Description is entered explaining the overtime rules.

Two rules are configured in the Overtime Rules tab: Employee Schedule Rule and Non Working Days Rule.

Employee schedule rule

The Employee Schedule Rule is based on Quantity, and employees accrue overtime if they work more than the amount defined on the contract on any given Day. No tolerance set for either the employee or the employer. If the employee works overtime, they are paid at a rate of 150%, and the time is logged as Overtime Hours on their attendance log.

Non-working days rule

The Non-Working Days Rule is based on Timing, and employees accrue overtime if they work on any non-working day, regardless of the time. No tolerance is set for either the employee or the employer. If the employee works overtime, they are paid at a rate of 150%, and the time is logged as Overtime Hours on their attendance log.