What is the Extra Time?

Extra time refers to all the hours worked by an employee beyond their estimated or planned work hours.

In Factorial, there are two ways to compensate for extra time:

• Through time off
• Through payroll

How to Enable Extra Time Compensation Through Time Off

To enable extra time compensation through time off, follow these steps:

1. Navigate to the sidebar Configuration > Time Tracking
2. Select the time tracking policy where you want to enable this feature
3. Within the policy settings, go to the Compensation section
4. Enable the option to Compensate with Time Off

Configuring Extra Time Compensation

Balance Configuration

The balance configuration determines when the platform resets the planned hours versus worked hours in time tracking. This reset only affects the time tracking balance and does not directly impact the time off counter.

Overtime Compensation Configuration

1. Time off allowance counter consults the balance and updates accordingly: This setting determines when the platform checks the balance and, if extra time is found, transfers it to the time off counter.

1. Will be transferred to the time off counter:
   1. All overtime worked: All extra hours recorded after the balance check are transferred to the time off counter.
   2. Overtime worked beyond the limit: Only the extra hours that exceed a defined threshold are transferred. This allows organizations to set a minimum number of extra hours an employee must accumulate before earning time off.

Defining the Thresholds

• Limit starts at: Defines the minimum amount of extra hours an employee must accrue before compensation begins.
  • Example: If this is set to 5 hours, the employee must work 5 hours of extra time before the system starts adding time to the time off allowance.

• Maximum per cycle: Sets the upper limit of extra hours that can be added to the time off counter in a single balance cycle.
  • Example: If this is set to 10 hours, no more than 10 hours can be transferred to the time off counter per cycle, regardless of how much extra time is worked.

Negative balance settlement

If the balance is negative at the end of the time off update cycle, the accumulated hours on the counter will be used to compensate for the negative balance. The time-off counter may go negative if there aren’t enough accumulated hours to cover the negative balance.

If this option is disabled, no negative balance will be transferred to time off. If enabled, negative transfers to time off will be unlimited.

Understanding the Key Counters in Time Tracking

To better manage extra time compensation, it’s important to understand the different counters visible in the time tracking section:

• Worked Hours: Shows the total hours worked in the current month. Estimated hours are based on the time planning tool.
• Balance: Represents the difference between estimated and actual worked hours for the selected balance period. This can be:
  • Positive: The employee has worked extra hours, which may be moved to the time off counter based on the configuration.
  • Negative: The employee has worked fewer hours than planned, and extra time will be used to balance this deficit.
• Total for Compensation: Indicates the total hours that have been compensated through time off.