Overtime Functionality on Holidays

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    Overtime Functionality on Holidays

    An Oracle Whitepaper

    Oracle Corporation

    OTL: Overtime

    Functionality On

    Holidays Descriptions, Setups and Examples

    Oracle Time and Labor Development Team 

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    Author Ashok Rajagopal, OTL Development Team

    Reviewed ByAnima Prasad, OTL Development Manager

    Vishwanath Kuchibhotla, HCM Product Management

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    CONTENTS

    Holidays and Worked hours on Holidays ....................................................................................................................... 4 

    Erstwhile Holiday Functionality in OTL ...................................................................................................................... 4 

    Drawbacks ............................................................................................................................................................. 4 

    Profile Option HXT: Overtime Functionality on Holidays .............................................................................................. 7 

    No Explosion Except Holiday Rule ............................................................................................................................ 7 

    Normal Explosion and Holiday Rule ......................................................................................................................... 7 

    Points to note while considering this profile option ............................................................................................. 9 

    How to set the Earning Group ............................................................................................................................... 9 

    How to setup Holiday Premium ............................................................................................................................. 9 

    How to setup Shift Differential Premium ............................................................................................................ 10 

    Daily/Weekly/Special Overtime only and Holiday Rule ........................................................................................ 12 

    How to set the earning group .............................................................................................................................. 14 

    How to setup Holiday Premium ........................................................................................................................... 19 

    How to set Up Shift Differential Premiums ......................................................................................................... 20 

    Daily/Weekly/Special Overtime and Holiday Rule only for Regular ..................................................................... 23 

    How to set the Earning group .............................................................................................................................. 25 

    How to set up Holiday Premium .......................................................................................................................... 26 

    How to setup Shift Differential Premiums ........................................................................................................... 27 

    Points to note in setup ............................................................................................................................................ 28 

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    HOLIDAYS AND WORKED HOURS ON HOLIDAYS

    Holidays are any kind of Public holidays, Organization Holidays or any other sort of pre scheduled days

    on which the employees are not expected to work. Such days are associated with National or regionalfestivals usually and are decided at the beginning of the financial/calendar year.

    Worked hours on holidays happen when, due to planned/unplanned requirements, an employee is

    expected to work on a holiday day. The employee may be paid in a different rate for such kind of work

    performed on a holiday.

    ERSTWHILE HOLIDAY FUNCTIONALITY IN OTL

    OTLR’s existing holiday rule is equipped to handle a different rate of payment on holiday d ays. This is bythe use of a Holiday Rule, which can be defined in the Earning policy form, along with

    Daily/Weekly/Special earning rules. Holiday rule is similar to other rules, and it facilitates creation of

    tiers of rules and Payroll elements to be paid when the number of hours entered falls in the given tier.

    Eg. Holiday rule defined like below.

    Table 1

    Rule Name Type Element Hours

    Holiday Regular Rule Holiday Earning Rule Time Worked (holiday) 8

    Holiday Overtime Rule Holiday Earning Rule Overtime (holiday) 24

    If the employee works for 7 hours he gets paid with Time Worked(holiday) element for 7 hrs.

    If the employee works for 10 hours he gets paid with Time Worked (holiday) element for 8 hrs, and 2

    hours of Overtime (holiday).

    This explosion overrides any other rules (Daily/Weekly) in case the day worked is a holiday as defined in

    the Holiday calendar. It works like a special daily overtime rule, which takes highest precedence on aHoliday day. So as per this functionality when an Employee works on a Holiday day, the only thing that

    he will get paid is what is defined in the Holiday Rules in the Earning policy.

    DRAWBACKS

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    Needless to say, this has drawbacks. The legislative requirements of Daily/Weekly and Special overtimes

    are not met with, if a Holiday falls towards the latter half of the week, when the employee has crossed

    over weekly overtime.

    Here is an example

    Table 2

    Monday Tuesday Wednesday Thursday Friday

    Saturda

    y Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    This is a normal work pattern for many organizations, where there is a Weekly overtime rule defined to

    pay the employee in Overtime for hours above 40. The weekly overtime paid is added as part of the

    Earning group. On Thursday, which is the Fourth day of the week, Weekly overtime is reached. On the

    Fifth Day all the 12 hours falls on to Weekly overtime. Since the employee has worked a total of 60

    hours for the week, he is entitled to receive 20 hrs of Weekly overtime.

    In case there is a holiday rule defined, and the holiday falls on Monday, the explosion changes like

    below, which might still is ok.

    Table 3

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 4

    Overtime 8 12

    Holiday Worked 8

    Holiday

    Overtime 4

    Here, Regular hours on Monday did not get paid. Nevertheless Holiday rule came into calculation there

    and paid the employee according to Holiday Rule. This is fine because Holiday Pays would normally be

    more than Regular Pay and no legislative requirements are broken here.

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    But, if the holiday falls on the fourth day of the week,

    Table 4

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12Overtime 12

    Holiday Worked 8

    Holiday

    Overtime 4

    Here the scenario differs slightly. On Thursday, the Holiday rule came in and paid the employee as per

    the rules. On Friday, since employee has worked 48 hours since then, has exploded into 12 hours. But

    this breaks a few legislative requirements. Employee worked for 60 hours in the week, but got paid only

    12 hours of Weekly overtime. It can be argued that the holiday Pay on Thursday could have covered the

    overtime, but all of it will depend upon how the Labor laws are set up for the organization. If the

    legislative requirement says that any hour over 40 SHOULD be paid as Overtime for the employee, we

     just broke the law with this kind of explosion.

    There you go with the drawback of the existing functionality. The existing functionality was good

    enough until Weekly overtime is reached. Once it reaches Weekly overtime, the Holiday rule intervenes

    in other Overtime rules, and creates a mismatch in Overtime rules.

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    PROFILE OPTION HXT: OVERTIME FUNCTIONALITY ON HOLIDAYS

    With 11iFPKRup5 and R12.1.2, we have the new profile option HXT: Overtime Functionality on Holidays.

    This is a site level profile option and can be set to decide the way you want Holiday Rule to function withthe rest of the earning rules. The available profile options are as follows.

    NO EXPLOSION EXCEPT HOLIDAY RULE

    This option preserves the existing functionality of the application as described above. How this option

    works is explained above.

    NORMAL EXPLOSION AND HOLIDAY RULE

    This profile option is just a combination of all the existing explosions and Holiday Rule. Lets take the

    above example of 60 hours worked on a week.

    Table 5

    Monday Tuesday Wednesday Thursday Friday

    Saturda

    y Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    This of course is the explosion when there are no holidays in the Week.

    When Monday is a holiday, explosion turns into

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    Table 6

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    Holiday Worked 8

    Holiday

    Overtime 4

    Please note that on Monday, for which 12 hours are worked, Regular hours as well as hours as per

    Holiday rule got paid.

    For a Holiday on Thursday

    Table 7

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    Holiday Worked 8

    Holiday

    Overtime 4

    As the name of the profile option says, this option makes the Holiday rule apply on top of the existing

    explosions.

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    POINTS TO NOTE WHILE CONSIDERING THIS PROFILE OPTION

      On a holiday, employee is paid according to Daily/Weekly/Special rule and Holiday rule. This

    means that you pay twice for a given hour of work, although in different Payroll elements.

    HOW TO SET THE EARNING GROUP

    With this profile option, Holiday rule’s elements work like a p remium on the hours worked. So it is

    imperative that adding these to Earning group should be avoided at all times. It certainly would topple

    up Weekly overtime calculation. For example in Table 6 above, if the elements in Holiday Rule where

    added to earning group, explosion will change to the below pattern.

    Table 8

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 4

    Overtime 8 12 12

    Holiday Worked 8Holiday

    Overtime 4

    This happens because the hours paid under holiday rule on Monday got counted towards weekly cap

    and the system counts 24 hours for Monday, rather than the 12 hours the person worked for. To avoid

    such kind of circumstances, it is advised to avoid including the Holiday rule elements to earning group.

    HOW TO SETUP HOLIDAY PREMIUM

    A similar case exists while adding a Holiday Premium to act on Holidays for every hour worked. Such a

    holiday premium is a requirement for many organizations on top of the Holiday rules and other

    overtimes. Premiums may be of any kind. Nevertheless, for this option of the profile, since you are

    paying more than the number of hours actually worked, it would make sense to attach the premium to

    EITHER the holiday rule elements or Other Regular and Overtime elements and NEVER to BOTH.

    Attaching Holiday premiums thru Premium Eligibility Policy to both the set of elements will result in

    overpayment of holiday premiums, like below.

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    The below picture shows how duplicate Holiday Premiums appear

    Table 9

    Monday Tuesday Wednesday Thursday Friday Saturday Sun

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    Holiday Worked 8

    Holiday Overtime 4

    Holiday Premium 12

    Holiday Premium 12

    HOW TO SETUP SHIFT DIFFERENTIAL PREMIUM

    It might be required that Shift Premiums might be paid to the employee when he works on a particular

    window of time, say 6 PM to 11 PM. For such cases too, the above point about Holiday Premiums are

    valid. If the employee works from 6PM to 11 PM on a holiday day, he gets paid as per the Daily/Weekly

    rules and Holiday Rules. So if SDP is attached, to both the set of elements, it would be paid twice.

    Consider a case in the above example, where Monday is a holiday, and employee enters start time- stop

    time instead of straight hours. He works from 11:00 to 23:00 and is eligible for a Night Shift premium. If

    the SDP element is attached via Premium Eligibility Policy to Regular element, Holiday Worked and

    Holiday Worked Overtime element, the following explosion will result.

    For Regular

    For Holiday Worked and

    Holiday Overtime

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    Table 10

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked

    11:00

    23:00 12 12 12 12

    Explosion

    Regular

    11:00

    23:00 12 12 4

    Overtime 8 12

    Holiday Worked

    11:00

    19:00

    Holiday Overtime

    19:00

    23:00

    SDP

    18:00

    23:00

    SDP

    18:00

    23:00

    To avoid this kind of duplication, it is imperative that SDP elements may not be attached thru

    PEP to the Holiday rule elements, when using this profile option.

    For Regular

    Hours

    For Holiday Rule

    elements

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    DAILY/WEEKLY/SPECIAL OVERTIME ONLY AND HOLIDAY RULE

    This is the third and more sophisticated option available for Holiday and overtime for the new profile

    option HXT: Overtime Functionality on Holidays. If this is set,

      No Regular element will be paid on Holidays.

      All overtime (Daily/Weekly/Special) elements that fall on a holiday day will be paid in full

      All holiday elements ( elements attached to the holiday rule in earning policy) will be paid for

    the total number of hours worked.

    To understand this, let’s  get back to the example of a 60 hour work week. Here is the time

    worked and expected explosion when there is no holiday.

    Table 11

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    When a holiday falls on Monday, with profile option set to this value, the explosion would be

    Table 12

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    ExplosionRegular 12 12 4

    Overtime 8 12

    Holiday Worked 8

    Holiday

    Overtime 4

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    As you can see here, on the holiday no regular element was paid. Holiday rule was paid fully for the

    total number of hours. Let’s see a scenario with Holiday falling towards the end of the week.

    Table 13

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12

    Overtime 8 12

    Holiday Worked 8

    Holiday

    Overtime4

    As you can see in the above example, on Thursday, which is a holiday, 8 hours of overtime that the

    employee was supposed to get was paid. Also, holiday rule got applied for all 12 hours worked during

    the day. The 4 regular hours which the employee would have got if the day was not a holiday was not

    paid. This is an example of a holiday falling on a day which has regular and overtime to be paid

    according to other (daily/weekly) rules. On the holiday, the employee worked for 12 hours, and he got

    paid for a total of 20 hours, according to Weekly overtime rule and Holiday rule.

    In case the holiday was on Friday instead of Thursday, the following explosion would have happened.

    Table 14

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    Holiday Worked 8

    HolidayOvertime 4

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    HOW TO SET THE EARNING GROUP

    This option being complex as it is, the system is intelligent enough to count the Regular hours that are

    not getting paid to be counted towards Weekly overtime cap. So, for this profile option also, it is

    imperative that Holiday elements are not added to earning group. The system does not pay the

    employee with the regular element, but it knows that a regular element has to be counted on the day,and weekly cap will be calculated based on the total number of hours worked rather than what is paid.

    Lets see this clearer with the above example of Thursday as holiday.

    If Friday was not a holiday, the following explosion is expected.

    Table 15

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    Holiday Worked

    Holiday

    Overtime

    Here employee worked for 60 hours in the week, and he is supposed to get 20 hours of overtime. With

    the holiday coming on Thursday, explosion changes as below.

    Table 16

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12

    Overtime 8 12Holiday Worked 8

    Holiday

    Overtime4

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    Here the system assumes the regular element being paid on the day, and does OT calculation with the

    below picture.

    Table 17

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    Holiday Worked 8

    Holiday

    Overtime

    4

    To get the scenario clear let’s get an example of time worked like below.

    Table 18

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 6 12 12

    Explosion

    Regular 12 12 6 10

    Overtime 2 12

    Though this is not paid, system assumes it

    is paid, and calculates overtime

    accordingly.

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    When the holiday falls on Thursday and HXT: overtime Functionality on Holidays is set to

    Daily/Weekly/Special Overtime and Holiday rule on Holidays is set, the following explosion occurs.

    Table 19

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 6 12 12

    Explosion

    Regular 12 12 6 10

    Overtime 2 12

    Holiday Worked 8

    Holiday

    Overtime4

    Here again, the 10 hours on Thursday, which is the grayed out cell is not paid. But if the system did not

    know of this 10 hours, then the explosion would have been like below.

    Table 20

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 6 12 12

    Explosion

    Regular 12 12 6 8

    Overtime 2 4

    Holiday Worked 8

    Holiday

    Overtime4

    Note that Friday explodes into 8 hours regular and 4 hours overtime instead of all 12 hours of overtime.

    This is because, without the regular element on Thursday, the total number of hours worked for the

    week is 12+12+6(all regular, Monday thru Wednesday)+2(overtime) = 32 hours. System has to assume

    the Weekly cap is not reached, and will pay 12 hours into 8 regular and 4 overtime hours.

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    Please note that this is not how the explosion happens; it is just an explanation of how a less intelligent

    system would have behaved.

    To understand how adding Holiday Worked elements to Earning rule would topple up the explosion,

    let’s go into a 3 tier Weekly rule where anything above 52 hours in a week is Weekly doubletime.

    Look at the below explosion.

    Table 21

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 6 12 12

    Explosion

    Regular 12 12 6 10

    Overtime 2 10Doubletime 2

    The Friday hours are exploded to 10 hours of Overtime and 2 hours of Doubletime, because till

    Thursday, a total of 42 hours have been worked. Anything over 52 is to be paid as doubletime.

    Lets impose the holiday on Thursday, and see the explosion.

    Table 22

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 6 12 12

    Explosion

    Regular 12 12 6 10

    Overtime 2 10

    Doubletime 2

    Holiday Worked8

    Holiday

    Overtime4

    Note the grayed out cell of Regular hours not being paid and System already knowing it. If System did

    not know about it, the following explosion would have happened.

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    Table 23

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 6 12 12

    Explosion

    Regular 12 12 6 8

    Overtime 2 4

    Doubletime

    Holiday Worked 8

    Holiday

    Overtime4

    Till Thursday, there are a total of 32 hours being worked, and system explodes the 12 hours on Friday to

    8 hours of Regular and 4 hours of overtime.

    In case you add Holiday worked and Holiday overtime to the earning group, this would be the resulting

    explosion.

    Table 24

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 6 12 12

    Explosion

    Regular 12 12 6

    Overtime 2 8

    Doubletime 4

    Holiday Worked 8

    Holiday

    Overtime 4

    Since there are 44 hours as per the earning group up to Thursday, system explodes the 12 hours into 8

    Overtime and 4 doubletime. Here again the explosion is not right because employee worked for a total

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    of 54 hours in the week, which means he is entitled to receive 12 hours of Overtime and 2 hours of

    doubletime.

    To avoid all this kind of Overpayment and underpayment issues, the System is equipped to count the

    Regular hours paid on the Holiday, even though it is not paid. It also means that adding Holiday Rule’s

    elements on to the Earning group is to be avoided completely because the system automatically takes

    care of it.

    HOW TO SETUP HOLIDAY PREMIUM

    In addition to the normal overtime rules, holiday overtime rules etc, it might be required to set up a

    Holiday premium for the total number of hours worked on a holiday. From the above explanation, it

    should be clear for you that on a holiday day, Regular elements do not get paid, Overtime elements doget paid and Holiday rule gets applied for all the hours worked. So it is imperative that Holiday premium

    should be attached only to the holiday rule elements. Eg. If you attached Holiday premium thru PEP to

    the overtime elements, this is what happens.

    Table 25

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12

    Overtime 8 12

    Holiday Worked 8

    Holiday

    Overtime4

    Holiday

    Premium8

    Holiday

    Premium12

    For Overtime

    element

    For Holiday

    Worked and

    Holdiay OT

    elements

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    To avoid these kinds of overpayment, it is imperative that you attach any Holiday Premiums only

    to the elements in the Holiday rule if this is the profile option you are selecting.

    HOW TO SET UP SHIFT DIFFERENTIAL PREMIUMS

    For this profile option, on the holiday days, Regular hours are not paid. But the holiday hours are paid in

    full and so are Overtime hours. This would lead to many duplication of SDPs. But the system will take

    care of deleting any duplicate SDPs provided for the same period of time. Let us get back to the

    example of 60 hours entered in a week, and time entered on Thursday with start time to stop time

    instead of straight hours.

    Imagine there is a shift premium associated to time from 12:00 Noon to 11Pm at night and time is

    entered like below.

    This is how explosion would happen if there was no holiday.

    Table 26

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time

    Worked 12 12 12

    11:00

    23:00 12

    Explosion

    Regular 12 12 12

    11:00

    15:00

    Overtime

    15:00

    23:00 12

    SDP

    12:00

    15:00

    SDP

    15:00

    23:00

    Corresponding to the

    regular hours

    Corresponding to the

    Overtime hours

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    Actually the two SDP entries would be combined – this is put up to make the idea clearer.

    When a holiday comes up on Thursday, the explosion comes up to like this.

    Table 27

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time

    Worked 12 12 12

    11:00

    23:00 12

    Explosion

    Regular 12 12 12

    11:00

    15:00

    Overtime

    15:00

    23:00 12

    SDP

    15:00

    23:00

    Holiday

    Worked

    11:00

    19:00

    Holiday OT

    19:00

    23:00

    SDP

    12:00

    19:00

    SDP

    19:00

    23:00

    For Overtime Hours

    For Holiday Worked

    For Holiday OT

    This is not paid, System

    assumes this

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    As you can see here, there is a chance for Duplicate SDPs in case Shift Differential element is attached to

    both the Holiday rule elements and the other elements. But it throws a deadlock situation because not

    attaching it to Holiday rule element might mean that you won’t get SDP paid on a holiday day where youworked for 12 hours but there are no overtime hours, like when a holiday falls on the beginning of the

    week. Not attaching SDP element to Regular or overtime element is not an option because you need

    SDP to be paid on normal days too.

    Fortunately, system is now equipped to eliminate any of the duplicate sdps. In case of the above

    example, system will eliminate the 15:00 to 23:00 entry for SDP because it is a duplicate entry. System

    scans thru all the available SDP elements paid and eliminates whichever one is overlapping another or is

    the exact copy of another.

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    DAILY/WEEKLY/SPECIAL OVERTIME AND HOLIDAY RULE ONLY FOR REGULAR

    This option follows the above profile option closely, but allows yet another complex requirement. There

    are organizations which have the rule which states that you need to have all the overtimes(weekly/Daily

    etc) paid as a mandate, irrespective of whether the day is a holiday or not, and holiday rules and special

    pay should only be applicable in case where the hours are not overtime. So if you set this profile option,

      No Regular element will be paid on Holidays.

      All overtime (Daily/Weekly/Special) elements that fall on a holiday day will be paid in full

      All holiday elements ( elements attached to the holiday rule in earning policy) will be paid, but

    only for those hours which should have been Regular in the first place. If the explosion is such

    that all the hours worked goes to overtime, no holiday rule is applied.

    Here is our 60 hours work week, when there is no holiday attached.

    Table 28

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    When a holiday falls on Monday, with profile option set to this value, the explosion would be

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    Table 29

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 4

    Overtime 8 12

    Holiday Worked 8

    Holiday

    Overtime 4

    Here is an example of with holiday falling towards the end of the week, on Thursday. OnThursday, 4 hours of regular and 8 hours of overtime were to be paid, if it was not a holiday.

    Table 30

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    ExplosionRegular 12 12 12

    Overtime 8 12

    Holiday Worked 4

    Holiday

    Overtime

    Holiday rule applied only for

    4 hours, which was the

    calculated regular hours on

    the day.

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    In case Friday was a holiday in place of Thursday, the following would have happened.

    Table 31

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    Holiday Worked

    Holiday

    Overtime

    In this above example, there is not Holiday pay coming into picture. That is because all 12 hours worked

    were moved to Overtime as per the weekly earning rule, and since there are no regular hours, the

    Holiday rule finds no place to apply itself.

    HOW TO SET THE EARNING GROUP

    Earning group setup for this profile option is also pretty much the same as that of the 3rd

     profile option.The elements in Holiday Rule are not to be added to the earning group. The system assumes that they

    are summed up, even though they are not paid.

    No Holiday Pay here

    because all 12 hours worked

    were counted as overtime.

    The Holiday rule applies

    only for Regular hours.

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    Table 32

    Monday Tuesday Wednesday Thursday Friday Saturday Sunday

    Time Worked 12 12 12 12 12

    Explosion

    Regular 12 12 12 4

    Overtime 8 12

    Holiday Worked 4

    Holiday

    Overtime

    As is the case with 3rd profile option, having Holiday Rule’s elements in earning group will result

    in unnecessary overpayments.

    HOW TO SET UP HOLIDAY PREMIUM

    For this profile option, the total number of hours worked on a day are preserved. If the employee

    worked for say 10 hours, which was supposed to get paid for 6 hours regular, and 4 hours overtime, he

    gets 4 hours of overtime, and 6 hours as exploded by Holiday rule on a holiday. Since the total 10 hours

    is preserved, there is no possibility of overpayment of Holiday Premium.

    But since there is no Regular element paid, but the system still assumes a regular hours worked, it isimperative that adding Holiday Premium thru PEP to Regular element is not useful. On the contrary, if

    Holiday Premium is not attached via PEP to Overtime elements, the system would not pay Holiday

    premium on the Holiday, if holiday falls after Weekly overtime is reached. So the following points are to

    be noted.

      Holiday Premiums not to be attached to Regular element.

    System does not pay

    this but counts it in

    overtime calculation.Holiday rule applied

    only for 4 hours of

    regular

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    Oracle Time and Labor

      Holiday Premiums must be attached to Overtime elements.

      Holiday Premiums must be attached to Holiday Rule elements.

    HOW TO SETUP SHIFT DIFFERENTIAL PREMIUMS

    On Holidays Regular hours would not be paid, but Overtime elements would be paid in full. And for the

    regular hours that are not paid, holiday rule will come into effect. It can be safely assumed that Holiday

    rule elements and Overtime elements divide the hours between them, and one would not overlap the

    other. So, for the case of Shift differential premiums, PEP must hold SDP elements against Holiday

    Rule’s elements, and all overtime elements.

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    POINTS TO NOTE IN SETUP

    The following important points have to be complied with for the smooth functioning of the Holiday

    Functionality in OTLR.

    EARNING CATEGORY

    Elements in the Holiday rule are to be created as type Overtime earning, and not Absence or any other

    type. An Absence type is used to represent a day the employee did not work, either part of PTO or

    otherwise. For an element which denotes the explosion of working on a Holiday, the category should be

    Overtime.

    MUTUALLY EXCLUSIVE ELEMENTS

    Elements in the Holiday Rule should not be the same as Daily/Weekly/Special overtime elements. At

    various instances in calculating what should be paid on Holidays, system needs to clearly distinguish

    between what is paid as Daily/Weekly/Special overtime and what is paid as Holiday rule. To help the

    system identify which is which, it is important to have distinct elements for Holiday Rule.

    LIMITING THE HOLIDAY PAY

    If the employee works for 12 hours a day, and the Holiday rule is defined only for 8 hours on a day, the

    system just pays the employee 8 hours of Holiday pay. In other words, Holiday rule applies for a

    maximum of what is defined in the Holiday Rule in the Earning policy. This should be noted while

    creating a setup for a case where normally an employee works for a maximum of say 15 hours, but on

    exceptions, he might work upto 24 hours. If the system is expected to adjust for this, Holiday rule must

    be set up for 24 hours.

    This could alternatively serve as a feature for Organizations following Holiday policy of one kind. For

    example, a few organizations might have the following rule.

    If the employee works on a holiday

      All regular/overtime pay as per normal Daily/Weekly explosions prevail.

     

    Any hours worked under 8 should be paid a Holiday pay, over and top of the daily/Weeklyexplosions, at a different rate.

      For any hours worked over 8, the same rate paid for 8 hours will prevail.

    In this case, the Holiday rule setup would have only one rule, upto 8 hours. For all the profile

    options, if the employee works more than 8 hours, he gets paid only 8 hours.

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    OVERRIDING OF HOURS

    Holiday Rule is a form of explosion performed by the OTLR engine. To facilitate this, it is required that

    users do not enter elements or enter only the base element type in self service or PUI. If the holidayRule’s element is explicitly entered, it is assumed to be an overridden element and no explosions would

    result.