With the new Overtime Settings feature introduced in the January update notes (click),
the overall functionality has been updated so you can more accurately calculate and manage overtime according to your company's overtime policies. As a result, compensatory leave, attendance reports, and the inclusive wage excess approval behavior have changed.
[Changes to Inclusive Wage Excess Approval Behavior]
Previously in flex, if you set an inclusive contract for 12 hours of overtime and configured inclusive wage excess approval, the system would calculate based on 18 premium hours (12 hours × 1.5). It would deduct not only overtime covered by the inclusive contract but also overtime not included in the inclusive wage contract from the 18 hours to determine whether excess approval should be triggered. For example, if 5 hours of night work occurred, it would be 18 - 5 = 13 hours, so the inclusive wage excess approval would not be triggered.
However, with this update, the approval has been changed from the previous total inclusive method to a fixed OT-based approval so that administrators can manage overtime more accurately.
If you set an inclusive contract for 12 hours of overtime with inclusive wage excess approval enabled, when night or holiday work not covered by the inclusive contract occurs, an [Inclusive Wage Excess Approval] will be triggered for the designated approver!
On the approval screen, hover over the inclusive wage excess hours to see detailed information about which overtime triggered the approval.
If you want overtime within legal working hours or overtime within legal working hours at night to also be deducted from the inclusive contract overtime hours, enable the "Overtime within legal hours deduction" setting under Settings - Overtime Compensation.
With this setting, if an employee with a 12-hour overtime inclusive contract generates 4 hours of overtime within legal working hours, the inclusive wage excess approval will not be triggered and will instead be deducted from the inclusive contract overtime hours.
If you manage inclusive wage excess separately and want to prevent employee notifications and approvals from being triggered, simply remove the approvers/CC recipients from the inclusive wage excess approval settings.
[Guide on 3-Type vs. 7-Type Overtime Classification]
You can choose how to interpret overtime according to your company's operational practices.
If an employee who works 9 AM to 6 PM works until 3 AM the next day on a weekday:
If you want to classify it as 4 hours of overtime (6 PM - 10 PM) and 5 hours of overtime+night work (10 PM - 3 AM next day), use the 7-type setting.
If you want to classify the night work on weekdays (10 PM - 3 AM next day) as
[Night work] rather than overtime+night, paying only the 0.5x premium,
we recommend setting the overtime item usage to 3 items!
For more details on the above, please refer to the guides below and configure the
overtime settings that match your company's situation.