When employees work extra hours, your organization may choose to compensate them with time off instead of paying them overtime. You can set up Replicon to convert overtime to time off in lieu automatically, or to allow users to choose which hours to convert.
You must be using Configurable timesheets, pay rules, and new time off to set up time off in lieu. If you're not using these, you may still be able to let users bank overtime hours. Refer to Setting up overtime banking for more information.
Which hours are available for conversion to time off depends on two things: each user’s assigned pay rule and the settings you enable in your company’s time off in lieu policy.
When setting up time off in lieu, you can choose whether the calculation is automatic or whether the employee can specify how many hours are converted.
If the calculation is automatic, all hours for the selected pay code are converted at the multiplier you specify. The user’s timesheet will show the calculation.
If the calculation is manual, the employee can choose how many overtime hours are converted to time off. The user makes these selections on their timesheet. Any hours that are not converted will be paid out.
If you wish, the user can also choose how many time off hours are granted in exchange for the overtime, and the time off type they are deposited to.
To set up time off in lieu:
You don’t need to create a special time off type for saving time off in lieu – any time off type can be used. However, you might want to use the Banked Time type if you don't want balance limits and resets configured for other time off types to apply to time off in lieu.
If you just enabled Time Off in Lieu permissions, you may need to log in to the system again before this option will display.
In some jurisdictions, employees must, by law, be granted time off equivalent to their overtime rate. For example, a user who earns 1.5x for 2 hours of overtime must be granted 3 hours of time off in lieu of that overtime.
If you select multiple time off types:
Users will only be able to deposit to the selected time off type if it is assigned to them in their user profile.
The Time Off in Lieu Deposits option in the time off in lieu policy lets you change the time of deposit from after approval (the default), to as soon as the applicable overtime is entered in the timesheet. This option is useful for select customers who offer compensatory time off that expires quickly, to ensure employees have time to use the rest time they’ve earned. We do not recommend changing this setting under typical usage, as it risks employees taking time off based on invalid overtime.
On any new timesheets, the user’s overtime will now be converted to time off based on your policy settings.
If none of the eligible time off types are enabled for the user, an error will be shown on the user’s timesheet. The user will be paid out for the hours instead.
No, only one policy can be created. If you don’t want to give time off in lieu to certain users, don’t include the Time Off in Lieu component in their timesheet template. Their overtime will be calculated as overtime pay.