How do I set up leave in lieu of overtime?
This feature is available on all PaySpace editions.
A Pre-defined Formula can be applied to convert overtime hours processed on an employee’s record into leave.
Make use of the following steps to configure Leave in Lieu of Overtime.
Navigate > Configuration > Human Resources > Leave Administration> Leave Scheme Parameters
Step 1: Create a Special Leave Type for Leave in Lieu of Overtime on the Leave Scheme Parameters Screen.
Navigate > Configuration > Payroll > Payroll Config > Payroll Components
Step 2: Add the Note Component on the Payroll Components Screen to store the overtime hours that should accumulate as leave.
Step 3: Define the payslip name as "Leave in Lieu of Overtime Hours" and save the component.
Step 4: Add the Note Component, Custom Leave Accrual on the Payroll Components Screen. This component will convert the overtime hours processed into leave accrual.
Important
Ensure that the calculation order of the component on which the overtime hours will be stored, is before the component which will convert the overtime hours into leave accrual. To see the calculation order on the Payroll Component Screen, activate the below setting on the Company Settings Screen:
Navigate > Config > Payroll > Payroll Config > Calculation Settings
Step 5: Rename the component "Leave in Lieu of Overtime Hours Accrual" and select the Leave in Lieu of Overtime Leave Scheme that was setup.
Step 6: Select to expand extra options and select to add the component to all employees.
Step 7: Select the option "Click here to add Income Base to Calc Days to this component".
Step 8: Define the income base and select to add income base and save the component.
Step 9: To add Leave in Lieu of Overtime process overtime hours on the Leave in Lieu of Overtime Hours Note component.
Navigate > Employee > Payroll Processing > Edit Payslip > Notes
Once the Leave in Lieu of Overtime Hours Note Component have been saved, the Overtime hours captured and the Leave accrual for Leave in Lieu of Overtime will reflect on the Note Section of the employees payslip.
The Leave Accrual will also reflect on the employee's Leave Balances screen.
Navigate > Employee > Leave > Leave Balances
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