# AI Overtime Hours

This document outlines the setup of a classification which pays overtime.

## Award Rule

The award rule helps us define the logic to apply to the pay-class definition in calculating how to cost a shift for payroll. We say payroll irrespective of the employee being a sub-contractor, you would calculate payment in the same mode.

- This is all that's required to define the 24 hours in a day
- You notice that the weekdays have only a code of 'N', as we'll learn later represents "Normal Hours"
- This is the overtime grid. If we look down the 'Monday' column, the first row shows "2" meaning the first 2 hours of overtime, and the second row with "22" then infers the balance of the shift hours. We put 22 just as a catch-all

## Pay Class (Classification code) Setup

Here we define a pay class which uses the award rule above in its calculation. We'll only focus on the payment of overtime in this writeup.

- We're telling the pay-class which award rule to use "AWS6"
- This is perhaps the most important element - we're saying that in a shift the first "8" hours are the shift's base hours. ie. anything over 8 becomes overtime (not allowances).
- This line headed "Normal" defines the rate per hour for the Base Hours per day
- This grid "Overtime Base Rate", now combines with the points 3 & 4 (inside the Overtime grid) from the Award Rule above in calculating the value of the overtime.

There is a direct relationship between the rows of the Overtime grid in the Award Rule to the rows in the Overtime Base Rate grid here in the classification.

- Looking down the Monday column of the Award Rule, it reads as follows:
- The first 2 hours of overtime (what's in the 1st row of the Award Rule) are to be paid at the value "101" (1st row of the grid here)
- The other 22 hours of the shift are to be paid at the "103" rate.

## Sample Shifts with Overtime

To demonstrate the effect of this simply configuration, we'll create a couple of adhoc shifts to an employee that has AWS6 as their default pay-class.

Opening the first shift, we see at (1)

- 8 Normal Hours (base hours per shift)
- 2 hours of '101', the first 2 hours from the Award Rule grid
- 1 hour of '103', representing the balance of the hours in the shift

This 2nd shift recall is on a Satuday, and look at the Award Rule for Saturday.

- It has no value in row 1, therefore the award rule will drop down to the next row that has a value, which evalues itself at row '2'.
- Therefore, it will pick up the rate on row 2 '103' of the Overtime Base Rate of the pay class definition.