CakeHR allows to provide your employees with choice regarding their overtime hours. You can allow your employees to opt in for additional time off in exchange of worked overtime hours - or ask for these hours to be paid out.
It is also possible to split their overtime hours & get part of them paid out. Then the rest will be accrued as time off.

Let's take a look how it works.

Setting up

What do I need to set it up?

Adjusting settings

Let's begin by venturing into Settings -> Timesheets -> General & scrolling down to the bottom of the General settings section. Here you can find the controls that allow configuring the conditions under which your employees will be able to move overtime into time off - or split the overtime hours between payout & conversion to time off.

Let's start by selecting a time off policy from the dropdown list. This will be a policy that will be receiving overworked hours from employees for further usage:

Selecting a time off policy will render a selector. Here you can choose whether the system should allow to select how many hours are to be paid out & how many - to be moved into a selected policy, or whether all hours should be moved to time off policy.

Hit Save when done!

How does it look for an employee?

If an employee has logged some overtime in a timesheet they are submitting, then system will behave based on active selection in a setting you configured above.

If 'Allow to give only to selected policy' is enabled:

When submitted timesheet is approved, employee's overtime hours will be converted into hours (or days) in a time off policy which is specified in settings.

If 'Allow to split between paying with salary & give to selected policy' is enabled:

When submitting a timesheet, employee will be able to specify how many hours are to be paid out & how many - to be moved into a selected policy - as shown on a screenshot below

Submitting a timesheet will notify their timesheet approver. Approver will get a notification & is eligible to see & override the distribution of hours before approval in a similar manner:

Can I get a report that shows hours moved by my employee?

Yes. Once settings are enabled, all hours moved to a time off policy will be observable in Timesheet export - you can find it at the bottom of every Timesheet. This report will be especially convenient for your accountant :)

Columns in the exported document:

That is it!
We hope you enjoyed this short article on overtimes. If you have any questions, please feel free to reach out to us via Support widget in the bottom-right corner. :)

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