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Can I Grant Compensatory Leave When Overtime Occurs?

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Compensatory leave includes overtime hours pending approval. Before approving compensatory leave, please check through the Daily Work Report whether the approval of daily work records has been completed. Unapproved cases may also result in compensatory leave being granted.

If you are using the flex payroll calculation feature, extended work for which compensatory leave has been granted will be automatically excluded from overtime pay during payroll calculation.

What is Compensatory Leave?

Compensatory leave is a system that compensates with paid leave instead of wages by adding a premium to overtime hours worked by members during extended, night, or holiday work. Instead of paying money calculated by adding a premium to ordinary wages for overtime, an equivalent amount of leave time is granted.

For more details, please refer to the guide on the right! Holiday Substitution vs Compensatory Leave vs Alternative Time Off

Granting Compensatory Leave

  • In the left menu, go to [Attendance Management] → [Grant Compensatory Leave] tab to filter and search for eligible members by work period, organization, overtime category, and attribution date type.

  • Please be sure to check this guide for detailed information on overtime categories and comprehensive contract deduction time calculation values and settings for each member shown in the search results! Go to Overtime Settings Guide

    • The deduction time shown in the compensatory leave tab is automatically calculated based on the comprehensive contract hours entered for each member. For details on wage contract information, please refer to the guide below.
      Comprehensive Contract Guide

  • The detailed descriptions for each compensatory leave item are as follows.

    • Overtime Hours (A): The total of overtime items that actually occurred during the queried work period

    • Deduction Time (B): The total of overtime items deducted under the comprehensive contract. If less overtime occurred than contracted, only the amount that occurred is deducted; if more occurred, the entire contracted amount becomes the deduction time.

    • Overtime Categories: Items included in A

    • Required Grant Time (C)

      • This is the value calculated by multiplying the remaining time after deduction per item (A - B) by the premium rate for each item and adding them together.

      • If compensating all overtime with compensatory leave, this is the amount of time that should be granted.

    • Previously Granted Time (D): Time already granted as compensatory leave

    • Available Grant Time (C - D): Required grant time

(Click) Detailed Example by Item

  • Scenario

    • Comprehensive Contract: Monthly Extended 4 hours

    • Overtime Incurred: Extended 10 hours, Night 4 hours (Total 14 hours)

    • Leave Already Granted: 1 hour

  • Overtime Hours: 14 hours

  • Deduction Time: 4 hours

  • Overtime Categories: Night, Extended

  • Required Grant Time: 11 hours

    • Extended (10-4) = 6 hours * Extended premium rate 1.5 = 9 hours

    • Night 4 hours * Night premium rate 0.5 = 2 hours

  • Previously Granted Time: 1 hour

  • Available Grant Time: 10 hours (11 hours - 1 hour)

Granting Compensatory Leave Individually per Member

  • Click [Grant] in the compensatory leave grant list to grant compensatory leave individually.

  • Enabling [As Much as Possible] will grant the entire available grant time regardless of overtime category.

  • Disabling [As Much as Possible] allows you to check the detailed overtime breakdown and grant for specific items only. (e.g., Grant compensatory leave only for extended work)

  • Usage Period

    • [Available Anytime]: You can grant without an expiration date.

    • [Enter Start Date Only], [Enter Expiration Date Only]: You can specify start and end dates individually.

Bulk Granting Compensatory Leave

  • Click [Bulk Grant] in the upper right of [Grant Compensatory Leave] to grant compensatory leave to all queried members at once.

  • [As Much as Possible per Member]

    • Enabling this setting will grant the entire available grant time for each member regardless of overtime category.

    • Disabling this setting allows you to grant [up to N hours for specific items].

      • For example, if [Extended 10 hours] is entered, members who worked more than 10 hours of extended overtime will be granted for 10 hours. Members who worked less than 10 hours of extended overtime will be granted for the amount of extended overtime that occurred.

  • Usage Period

    • [Available Anytime]: You can grant without an expiration date.

    • [Enter Start Date Only], [Enter Expiration Date Only]: You can specify start and end dates individually.

Compensatory Leave Grant History

  • Click [Grant History] in the upper right of the [Grant Compensatory Leave] tab.

  • You can check the compensatory leave grant history for the queried period. Use filters such as grant period, leave status, and expiration status to find the target records.

  • For each record, you can check the time amounts (granted, used, remaining, revoked) and the recipients and grantors in the table.

  • Click [View Details] to view the detailed information for each grant made to a member.

    • Summary Tab: Check how much was granted per item, how much was used, and how much remains.

    • Grant by Overtime Tab: Check which overtime items were the basis for the grant.

    • Usage History Tab: View the list of leave used from this grant.

  • Click the three dots in the upper right of [Grant Detail History] to revoke and change the usage period for each grant.

    • [Change Usage Period]: As with the grant time, you can change the start and end dates individually, and change to always available.

    • [Revoke]: The remaining balance is revoked immediately.

      • You cannot revoke only partial hours or minutes.

      • After revocation, if a member cancels their leave, the time is not revoked and the member can use it again.

Downloading Compensatory Leave Report

  • Click [Excel Download] in the upper right of [Grant Compensatory Leave].

  • Select the period, status, and expiration status, then click [Download Grant History] at the bottom.

  • You can view the time amounts (granted, used, remaining, revoked) per grant record, along with related overtime and leave usage history at a glance.


FAQ

What is intra-statutory extended work?

We pay additional intra-statutory extended work allowance as a company benefit. Can I change the premium rate?

  • You can directly set the overtime premium rate in Settings → Payment Items → Variable Payment Items - Overtime Pay. ※ Note that the premium rate can only be set at or above the rate stipulated by law!

I'm curious about the premium rates by overtime type!

  • According to Article 56 of the Labor Standards Act, the premium rates are set as follows.

Are members notified when compensatory leave is granted?

  • Yes, notifications are sent via [Notifications] and [Email] as shown below!

Are members notified when the compensatory leave usage period is changed or leave is revoked?

  • Yes! Notifications are sent as shown in the image.

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