The Extra hour Compensation feature allows you to define and manage extra-hour compensation in a more flexible and standardized way. With this update, customers can set up extra-hour rules based on tranches and apply different multipliers (Majorations) in a single section within the Time Tracking module.

This improvement ensures compliance with labor laws and enhances the usability of Factorial for key markets by unifying the process of defining extra hours.

How It Works

Accessing the Extra-Hour Rules Section

1. In your sidebar, go to Settings → Time
2. Navigate to Time Tracking Policy Settings
3. Under Work Time Categories, locate the new Extra-Hour Rules section

Defining the Baseline for Extra-Hour Calculation

Before setting up extra-hour rules, you need to establish a baseline for extra-hour calculation:

• Planned Hours: Compare worked hours with the planned schedule.
• Agreement Hours: Compare worked hours with contractual agreement.

Understanding the Base Rule

By default, a Base Rule is created:

• Classification: All hours beyond the reference point (Agreement Hours or Planned Hours) are considered extra hours.
• Conditions:
  • Hourly Rate: 1 = 1 (each extra hour is compensated equally)
  • Compensation Method: Extra hours go to the bank of hours.

Creating a Custom Extra-Hour Rule

To define a new extra-hour rule:

1. Click New Extra-Hour Rule.
2. Define a Rule Name (either select an existing one or create a new one).

3. Set the Tracking Condition:
   • Choose Fixed Range or Unlimited.
     • Example: Define an extra-hour rule for 1st to 2nd hour.

4. Define the Hourly Rate Multiplier:
   • Example: 1 hour = 2 hours.

5. Select the Compensation Method:
   • Example: Send to Time Off.

6. Click Save.
    

The new rule will now appear in the Custom Rules section, displaying:

• Rule name
• Hourly range
• Hourly rate
• Compensation method

Reviewing Extra-Hour Compensation in the Timesheet

1. Open the timesheet of an employee with extra hours.
2. Click Compensation to review how hours are categorized:
   1. Hours following Rule 1 (e.g., 8 hours moved to Time Off).
   2. Hours following Rule 2 (e.g., 4 hours allocated to Payroll Compensation).
   3. Remaining hours follow the Base Rule.
       

3. Modify compensation if needed, such as moving extra hours to the bank of hours.