You can now set a minimum number of hours each timesheet cycle that your employees must work before they qualify for overtime. You can set this up in the placement.

First, set Overtime Averaging to Yes and decide the minimum hours your candidate must work before overtime kicks in:

Then, configure the pay rules and overtime rates for the job:

So, how is overtime calculated if you use overtime averaging?

In the above example, your candidate must work 40 hours at Pay Level 1 before overtime will kick in. Let’s say that they complete a timesheet with the following hours:

Pay level 1 - Time 1.0x - 40 hours worked

Pay level 2 - Time 1.5x - 2 hours worked

Pay level 3 - Time 2.0x - 1 hour worked

Pay level 4 - Time 3.0x - 0 hours worked

Because they have worked enough hours at Pay level 1 to qualify for average overtime, they will be paid at the following rates:

Pay level 1 - Time 1.0x - 40 hours paid

Pay level 2 - Time 1.5x - 2 hours paid

Pay level 3 - Time 2.0x - 1 hour paid

Pay level 4 - Time 3.0x - 0 hours paid

But what if they work less hours at Pay Level 1 than the Overtime Averaging?

Using the above example, let’s say that our candidate works the following hours:

Pay level 1 - Time 1.0x - 35 hours worked

Pay level 2 - Time 1.5x - 5 hours worked

Pay level 3 - Time 2.0x - 3 hours worked

Pay level 4 - Time 3.0x - 0 hours worked

Overtime averaging will make the hours in Pay level 1 up to the minimum of 40, by taking hours from Pay Level 2. Pay Level 1 must always equal the average overtime before overtime will kick in.

Therefore, the candidate will be paid at the following rates:

Pay level 1 - Time 1.0x - 40 hours paid (the 5 hours needed to reach the minimum are taken from Pay level 2)

Pay level 2 - Time 1.5x - 0 hours paid (these 5 hours worked are applied to Pay level 1)

Pay level 3 - Time 2.0x - 3 hours paid

Pay level 4 - Time 3.0x - 0 hours paid

This means that 40 hours are being paid at base rate before overtime will be paid.

What if I need to pay overtime, even though my overtime averaging minimum hasn’t been met?

There may be times that you need to pay overtime, even though the minimum average overtime hours has not been worked. For example:

In this example our minimum hours to reach overtime is 40. Our candidate has worked:

Pay level 1 - Time 1.0x - 32 hours worked

Pay level 2 - Time 1.5x - 0 hours worked

Pay level 3 - Time 2.0x - 0 hours worked

Pay level 4 - Time 3.0x - 8 hours worked (public holiday)

With average overtime set to “yes”, by default Vincere will take the 8 hours from the Public Holiday, and use them towards Pay level 1. Therefore, overtime for the public will not be paid.

If you want to pay overtime without the minimum weekly hours being worked, you either need to set average overtime to “No”, or you can manually change the invoice to show the correct amount at each pay rate.