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How does Deduct Late and Undertime works on Rest Days and/or Holidays

Overview

Sprout HR allows companies to configure whether late and undertime deductions apply on specific day types, such as rest days and holidays. These settings ensure that attendance and payroll computations align with company policies.

Policy Configuration

The following settings determine how late and undertime are applied:

  • Deduct late and undertime on Rest Day
  • Deduct late and undertime on Holiday
  • Deduct late and undertime on Rest Day/Holiday

Each option may be enabled or disabled depending on company policy.

How It Works

When any of these settings are enabled, the system will evaluate an employee’s attendance and may compute late or undertime even if the work is performed on a rest day, holiday, or both.

  • If Rest Day deduction is enabled, late and undertime will be calculated for work rendered on rest days.
  • If Holiday deduction is enabled, late and undertime will be calculated for work rendered on holidays.
  • If Rest Day/Holiday deduction is enabled, late and undertime will be calculated when a holiday falls on a rest day and the employee reports to work.

This applies regardless of schedule type, but the impact varies depending on whether the employee is on a Flexible Schedule or a Normal Shift.

Sample Scenario: 

An employee has fixed working hours of 9 (e.g., 9:00 PM – 6:00 AM).

  • The employee works on a holiday but:
    • arrives late, or
    • leaves before the end of the shift
  • Because “Deduct late and undertime on Holiday” is enabled, the system records:
    • Late (for time-in beyond the scheduled start), and/or
    • Undertime (for time-out before the scheduled end)
  • These may be reflected as deductions during payroll processing.

Sample (if policy is enabled): 


Sample (if policy is disabled): 

How to Modify This Behavior

If your company prefers not to deduct late or undertime on these days:

Submit a Change Request Form to update the attendance policy and request to ‘disable the “Deduct late and undertime on Holiday, Rest Day, or Rest Day and Holiday” setting.’

Important: Policy updates follow date tagging, meaning changes will only apply moving forward and will not affect past attendance records. [For more information, please refer to: Date Tagging: Company Policy]

Workaround for Existing Discrepancies

For previously processed attendance or payroll periods:

  • You may manually adjust attendance or payroll entries to remove late or undertime deductions, if necessary.
  • This ensures employees are not affected by prior policy settings.

Key Reminders:

  • The system evaluates required hours 
  • Policy changes are not retroactive due to date tagging.
  • Manual adjustments may be needed for past payroll periods.

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