The basis of the system for paying an employee overtime is three-pronged:
- First, there is the company policy that is set via back-end during the account creation process.
- Second, the overtime application filed by the employee himself/herself or his manager.
- Third, actual biometric logs as reflected on the Attendance Management page on Sprout HR.
Let's take a closer look at each of these considerations for overtime pay.
A. Company Policy
Your policy can either:
- Allow advanced filing of overtime applications (even before the OT hours are rendered) or, .
- allow overtime applications only after the there are actual biometric logs (OT hours have already been rendered).
This actually does not affect the pay-out but only determines when an employee can file for the application.
B. Overtime Application
The overtime application needs to be approved first before the employee gets credited to receive due recompense for it.
C. Actual Biometric Logs
This is the most important factor. Even if employees have approved overtime applications but don't have the actual biometric logs to support these, they will not get paid.
For example, an employee's shift is from 8:00 am to 5:00 pm and he logged in from 7:55 am to 8:30 pm. If he files for an overtime application from 5:00 pm to 9:00 pm (and his manager approves the application), he will only get paid for the duration of 5:00 pm to 8:30 pm.