KeyPay's pay conditions engine makes automatically accruing and calculating RDO or Time in Lieu payments easier than ever.
When would I use this?
Often employers will have an agreement with employees to allow them to accrue RDO or time in lieu of an overtime payment. A common scenario is that the standard work day for a business is 7.6 hours, however employees work 8 hours per day and will be able to accrue 0.4 hours per day of time in lieu, or 2 hours per week.
Setting up the rules
- Ensure that you have a “Time in lieu” or “RDO” leave category set up. To set one up go to the “Business Settings” menu –> “Leave Categories”
- Go to the “Business Settings” menu and under the “Pay Conditions” section select “Rule Sets”. Either select an existing rule set or create a new one.
- Add a new rule with the following details:- When “Hours Worked” is “Over Standard Hours Per Day”
Choose “Multiple Actions”
Action 1 details -
“Add Leave Accrual”
“Time in Lieu”
“Per Hour Worked”
Action 2 details -
“Apply pay category”
When you’ve added the rule, it should look like this
A couple of things to note –
- “Standard hours per day” is the standard hours per day as defined by the business settings.
- This rule will only match the portion of the shift that is “over the standard hours per day”. It doesn’t match the entire shift.
- Now you can test the rules by entering a timesheet for 9 am to 5 pm. When you run the test, it’ll break the shift up into the following parts1 x 7 hrs 36 min part – to be applied at standard earnings
1 x 24 min part which will not be paid
1 x 0.4 hour (24 min) part which will be applied as time in lieu
As you can see, using a simple rule such as this makes it easy to manage accruing RDO / time in lieu leave accruals
Please see below if you would like to view a video on this topic: