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Overtime Work Settings

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The overtime work item usage settings affect the entire company. When viewing past data after changing the settings, the interpretation or display of work data may differ.

You can revert to the previous settings at any time, but please make sure you fully understand this guide before configuring the overtime work item usage settings. To manage your company's overtime settings, the [Settings] → [Permission Settings] → [Overtime and Compensation Policy Management] permission is required.

Overtime Work Item Usage Settings

  • Click [Settings] → [Overtime Settings] → [Overtime Work Item Usage Settings] at the bottom of the left menu.

What are Overtime Work Item Usage Settings?

Overtime work item usage settings is an option that configures how your company displays and interprets overtime. Because the same overtime is expressed differently depending on whether you select [3 items] or [7 items],

the following areas are affected.

  • Overtime details when granting compensatory leave

  • Overtime details when downloading attendance reports

  • Overtime details when processing payroll

Please review how your company determines and manages overtime hours before proceeding with the settings.

  • When [3 items] is selected, overtime is expressed using a total of 3 categories: Extended, Night, Holiday (4 categories if Extended within statutory hours is included).

  • Since overtime is divided and expressed by each category of Extended, Night, Holiday, combined categories such as Extended·Night, Extended·Holiday, Holiday·Night, Extended·Night·Holiday, Extended within statutory hours·Night do not occur.

  • For a member working 9 to 6 who works from 18:00 to 3:00 the following morning, overtime hours are determined as follows. Night hours are calculated separately from total extended work hours.

    • Extended work: 18:00 ~ 03:00 (9 hours)

    • Night work: 22:00 ~ 03:00 (5 hours)

  • When [7 items] is selected, overtime is expressed using a total of 7 categories: Extended, Night, Holiday, Extended·Night, Extended·Holiday, Holiday·Night, Extended·Night·Holiday (9 categories if Extended within statutory hours, Extended within statutory hours·Night are included).

  • For a member working 9 to 6 who works from 18:00 to 3:00 the following morning, overtime hours are determined as follows.

    • Out of 9 total overtime hours:

      • Extended work: 18:00 ~ 22:00 (4 hours)

      • Extended·Night work (hours that are both extended and night work): 22:00 ~ 03:00 (5 hours)

In other words, the same overtime is expressed differently depending on the overtime work item usage setting value.

Let's look at another example.

For a member working 9:00~18:00 who works until 4:00 the next morning, generating 10 hours of extended work (18:00~04:00), of which 6 hours (22:00~04:00) were night work:

  • When [3 items] is set:

    • Extended: 10 hours

    • Night: 6 hours

  • When [7 items] is set:

    • Extended: 4 hours

    • Extended·Night: 6 hours

Interpretation of Comprehensive Contract Hours Based on Overtime Work Item Usage Settings

The 3-item and 7-item settings also affect compensatory leave and attendance reports. Additionally, the interpretation of comprehensive contracts differs. When deducting comprehensive contract amounts from overtime incurred, deductions are only made between matching categories.

The following areas are affected as a result.

  • Comprehensive contract deduction from overtime when downloading attendance reports

  • Comprehensive contract deduction from overtime when granting compensatory leave

  • Comprehensive contract deduction from overtime when processing payroll

  • For example, if a member has a comprehensive contract set to [weekly Extended·Night 12 hours] and 10 hours of extended work occurred, of which 6 hours were night work (work after 10 PM):

    • When [3 items] is set, the comprehensive contract hours are interpreted as follows.

Item

Hours and Interpretation

Contracted hours

Interpreted as separate comprehensive contracts of Extended 12 hours and Night 12 hours

Overtime hours incurred

Extended 10 hours, Night 6 hours

Compensation obligation exemption hours

Extended 10 hours, Night 6 hours —
No excess beyond the comprehensive contract (no additional compensation required).

Remaining comprehensive contract hours
(compensation triggered if overtime exceeds this)

Extended 2 hours (12 hours - 10 hours), Night 6 hours (12 hours - 6 hours)

  • When [7 items] is set, the comprehensive contract hours are interpreted as follows.

Item

Hours and Interpretation

Contracted hours

Interpreted as a comprehensive contract only for Extended·Night 12 hours.

Overtime hours incurred

Extended 4 hours, Extended·Night 6 hours

Compensation obligation exemption hours

Extended·Night 6 hours: no additional compensation required.
Overtime pay for Extended 4 hours must be paid.

Remaining comprehensive contract hours
(compensation triggered if overtime exceeds this)

Extended·Night 6 hours (12 hours - 6 hours)

Extended Within Statutory Hours Deduction Settings

❗ The Extended Within Statutory Hours Deduction Settings affect the entire company.

  • Scope of impact:

    • Comprehensive contract deduction from overtime when downloading attendance reports

    • Comprehensive contract deduction from overtime when granting compensatory leave

    • Comprehensive contract deduction from overtime when processing payroll

When viewing past data after changing the settings, the interpretation or display of data may differ.

You can revert to the previous settings at any time, but please make sure you fully understand this before making changes.

If your company does not distinguish and use extended work within statutory hours, please disable Distinguish and use extended within statutory hours and general extended work in the work type settings - extended work record settings.

  • Click [Settings] → [Overtime Settings] → [Distinguish and use extended within statutory hours and general extended work] at the bottom of the left menu.

  • You can view the list of work types that have extended work within statutory hours enabled.

  • Click on a work type to configure whether [Extended within statutory hours settings] is enabled in that work type's settings.

    • When Distinguish and use extended within statutory hours and general extended work is disabled: Extended work within statutory hours is treated as 'general extended' work.

    • When Distinguish and use extended within statutory hours and general extended work is enabled: Extended work within statutory hours is determined separately from 'general extended' work.

  • Click [Settings] → [Overtime Settings] → [Extended Within Statutory Hours Deduction Settings] at the bottom of the left menu.

  • The Extended Within Statutory Hours Deduction Settings is an option that configures how overtime for Extended within statutory hours is displayed and interpreted in relation to the Extended hours in a comprehensive contract.

    • When [Include (ON)] is set:

      • After deducting all Extended work using the Extended portion of the comprehensive contract, if there is a remaining balance, the Extended within statutory hours incurred can be additionally deducted.

      • The recommended setting is [Include (ON)].

    • When [Exclude (OFF)] is set:

      • Extended within statutory hours incurred cannot be deducted through the comprehensive contract.

Let's look at an example.

A situation where a comprehensive contract covers 8 hours of Extended work with a member, and 4 hours of Extended within statutory hours work has occurred:

  • When [Include (ON)] is set:

    • Extended within statutory hours deduction is enabled, and via the comprehensive contract, the 4 hours of Extended within statutory hours are exempt from the compensation obligation.

    • No excess beyond the comprehensive contract (no additional compensation required).

    • Remaining comprehensive contract hours (compensation obligation exempt if overtime occurs after this) are Extended 4 hours (comprehensive contract hours 8 hours - extended within statutory hours 4 hours).

  • When [Exclude (OFF)] is set:

    • Extended within statutory hours deduction is disabled, and the 4 hours of Extended within statutory hours are not exempt from the compensation obligation through the comprehensive contract.

    • The excess beyond the comprehensive contract (additional compensation required) is Extended within statutory hours 4 hours.

    • The remaining comprehensive contract hours (compensation obligation exempt if overtime occurs after this) are Extended 8 hours.

Overtime Compensation Policy

❗ The overtime compensation policy is a setting applied per member and per specific period.

  • Scope of impact

    • Comprehensive contract deduction from overtime when downloading attendance reports

    • Comprehensive contract deduction from overtime when granting compensatory leave

    • Comprehensive contract deduction from overtime when processing payroll

If you do not use a comprehensive contract, you can leave this policy at its default value.

  • Click [Settings] → [Overtime Settings] → [Add Compensation Policy] at the bottom of the left menu.

  • Enter the overtime compensation policy name and select the contract deduction cycle, then click [Save].

    • Members are automatically mapped to the first [Default] overtime compensation policy created.

    • If your company operates on a 'monthly' basis for comprehensive contracts, select [Monthly] for the comprehensive contract deduction cycle before saving. If your company operates on a 'weekly' basis, select [Weekly] for the deduction cycle.

Overtime Compensation Policy Deduction: Monthly

Overtime Compensation Policy Deduction: Weekly

Comprehensive Contract Input: Monthly

From overtime split on a 1-month basis,
deduct by (entered comprehensive contract amount)

From overtime split on a 1-week basis,

deduct by (entered comprehensive contract amount / average weeks per month)

Comprehensive Contract Input: Weekly

From overtime split on a 1-month basis,
deduct by (entered comprehensive contract amount × average weeks per month)

* The average weeks per month is deducted based on the average weeks per month configured in Settings - Payment Items - Auto Amount Input Feature Settings.

From overtime split on a 1-week basis,
deduct by (entered comprehensive contract amount)

  • Multiple overtime compensation policies can be created. If your company operates two or more payroll settlement types — such as contractors vs. full-time employees, or hourly vs. monthly salary, you can create a policy matching each member's overtime settlement cycle and link it accordingly.

    • For example, if contractors have a pay date on the 25th and full-time employees have a pay date on the 10th, and the overtime settlement periods differ accordingly, create two policies and apply different overtime compensation policies to contractor and full-time employee members.

By setting the comprehensive contract deduction cycle, you can define how '1 month' in the comprehensive contract is interpreted.

Let's look at an example below.

  • A situation where a comprehensive contract for Extended 10 hours per month is in place, and 10 hours of Extended overtime occurred on January 1, 2024 and another 10 hours on January 15, 2024.

  • Comprehensive contract deduction cycle set to 'Monthly 1st – Monthly 31st (last day)':

    • Out of the total 20 hours of overtime incurred over the 1-month period from January 1, 2024 to January 31, 2024:

      • Under the comprehensive contract, Extended 10 hours are exempt from the compensation obligation.

      • Excess beyond the comprehensive contract (additional compensation required): Extended 10 hours (from the extended work on January 15th).

      • In total, Extended 10 hours of excess beyond the comprehensive contract occurs.

  • Comprehensive contract deduction cycle set to 'Monthly 10th – Following month's 9th':

    • Out of the total 10 hours of overtime incurred over the 1-month period from December 10, 2023 to January 9, 2024:

      • Under the comprehensive contract, Extended 10 hours are exempt from the compensation obligation,

      • and no excess beyond the comprehensive contract (no additional compensation required).

      • This is because the [Extended] work on January 15, 2024 is not included in the comprehensive contract deduction cycle.

    • Out of the total 10 hours of overtime incurred over the 1-month period from January 10, 2024 to February 9, 2024:

      • Under the comprehensive contract, Extended 10 hours (extended work incurred on January 15, 2024) are exempt from the compensation obligation.

      • No excess beyond the comprehensive contract (no additional compensation required).

      • In total, no excess beyond the comprehensive contract occurs.

By default, the comprehensive contract amount and whether it has been exceeded are managed on a monthly basis according to the 'comprehensive contract deduction cycle' set in the overtime compensation policy. However, in the following situations, a cycle may be cut short before completing a full month.

  • When a member joins or leaves mid-cycle

  • When the applied overtime compensation policy is changed mid-cycle

In such cases, the comprehensive contract amount for the shortened cycle is calculated and interpreted on a pro-rated daily basis relative to the original cycle length.

Let's look at an example.

  • If the comprehensive contract deduction cycle is changed on January 10, 2024 from [Monthly 1st - Monthly 31st (last day)] → [Monthly 15th - Following month's 14th], a total of two shortened cycles occur.

    • 2024-01-01 ~ 2024-01-09 Monthly 1st - Monthly 31st (last day)

      • The original uncut cycle is January 1, 2024 ~ January 31, 2024, a total of 31 days.

      • Since 9 days are included, (9 / 31) of the 1-month contract amount stated in the comprehensive contract is treated as the contract amount for that period.

    • 2024-01-10 ~ 2024-01-14 Monthly 15th - Following month's 14th

      • The original uncut cycle is December 15, 2023 ~ January 14, 2024, a total of 31 days.

      • Since 5 days (January 10, 2024 ~ January 14, 2024) are included, (5 / 31) of the 1-month contract amount stated in the comprehensive contract is treated as the contract amount for that period.

When a cycle is shortened due to joining or leaving, the same pro-rated daily calculation applies.


FAQ

What are the overtime work categories?

Please refer to the table below for the overtime categories and the premium rate for each category. :)

Where can I enter & check the comprehensive contract hours agreed with a member?

  • You can enter and check them in the member's profile → Wage Contract Information!

How can I apply the created overtime policy to a member?

  • You can change it via [Members] → [Change Work Information] on the left menu.

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