Setting up RDO's and time in lieu with pay conditions
With the recent release of the pay conditions engine in KeyPay, automatically accruing and calculating RDO or Time in Lieu payments has never been easier.
When would I use this?
Often employers will have an agreement with employees to allow them to accrue RDO or time in lieu of an overtime payment. A common scenario is that the standard work day for a business is 7.6 hours, however employees work 8 hours per day and will be able to accrue 0.4 hours per day of time in lieu, or 2 hours per week.
Setting up the rules
- Ensure that you have a “Time in lieu” or “RDO” leave category set up. To set one up go to the “Business Settings” menu –> “Leave Categories”.
- Go to the “Business Settings” menu and under the “Pay Conditions” section select “Rule Sets”. Either select an existing rule set or create a new one.
- Add a new rule with the following details:
- When “Hours Worked” is “Over Standard Hours Per Day”
Choose “Multiple Actions”
Action 1 details –
“Add Leave Accrual”
“Time in Lieu”
“Per Hour Worked”
Action 2 details –
“Apply pay category”
“None” When you’ve added the rule, it should look like this.
A couple of things to note –
– “Standard hours per day” is the standard hours per day as defined by the business settings.
– This rule will only match the portion of the shift that is “over the standard hours per day”. It doesn’t match the entire shift.
- Now you can test the rules by entering a timesheet for 9 am to 5 pm. When you run the test, it’ll break the shift up into the following parts1 x 7 hrs 36 min part – to be applied at standard earnings
1 x 24 min part which will not be paid
1 x 0.4 hour (24 min) part which will be applied as time in lieu
As you can see, using a simple rule such as this makes it easy to manage accruing RDO / time in lieu leave accruals.