Organizations should configure overtime policies to ensure that they are compensating employees fairly for their additional work hours beyond the regular workday or workweek. By setting clear guidelines and rates of pay for overtime work, employers can avoid confusion or disputes over compensation and create a transparent and equitable work environment.
To modify the Overtime Policy settings on Keka, go to the Time Attend (1) section, navigate to Overtime (2), and open the Policies (3) tab. Now select the relevant policy from the list and go to the Versions (4) section and click the update icon (5) for the 'Current' overtime policy.
A new window will open up in which you first have to choose the Effective Date (from which the new policy will be applicable) in the Basic Information section.
Here you can also select which type of attendance hours (Gross or Effective) will be used in the calculations for overtime. Click on Save & Continue to proceed to the next section.
In the Overtime Configuration section, you have to select the type of work days for which the employees will be eligible for overtime.
You can select multiple options here and for each option, you have to choose if the employees are paid for overtime hours or they are awarded comp-off. Based on the option you select you will get additional settings that you can use to configure the rules for calculating overtime.
Working Day/Weekly Off Overtime Settings:
Here you have to choose 'What work hours beyond shift do you consider for Overtime compensation?', i.e., can employees work overtime before or after the designated shift timings, and if they have to complete the required effective/gross hours to be considered for overtime compensation.
If you have chosen to pay the employees for overtime, then you have to provide a predefined Pay Code to calculate the amount to be paid out.
After configuring the settings, click on Save & Continue to proceed to the next section.
In the Requests & Approvals section, you have the option to select whether employees raising overtime requests need to notify stakeholders. If yes, then you can access the settings that will let you configure the rules for raising requests.
You can also choose to set up an approval chain for this process
After configuring all the settings, click on Save & Close to close the window and this policy will come into effect from the date you selected in the Basic Information section.
We hope that this article was helpful, and if you are still having any doubts please reach out to our support team.
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