Understanding Overtime Within Work Cycles
According to the Labor Standards Act, work exceeding the statutory working hours of 8 hours per day and 40 hours per week is classified as overtime, which must be compensated at 1.5 times the hourly wage.
Part-time workers have different standards, but this document explains based on standard full-time worker criteria.
'Overtime within a work cycle' refers to overtime that occurs when daily work hours do not exceed statutory working hours, but the total working hours for the entire work cycle (1 week to 1 month) exceed statutory working hours.
For example, if an employee works 8 hours each day Monday through Friday and 4 hours on Saturday, no single day exceeds 8 hours, but when viewed by the cycle, the 4 hours exceeding 40 hours constitute overtime within the cycle.
Change in Interpretation Method
Starting from November 24, 2025, the flex attendance product will change how it interprets the attribution date for overtime within work cycles.
Previous Method
Overtime within a work cycle was not attributed to a specific time period.
It was not displayed on My Work or Employee Work timelines.
When a specific date was needed for daily reports, compensatory leave, payroll settlement, etc., it was attributed to the last day of the cycle.
For example, as shown in the screenshot above, when overtime within the cycle occurred in the October 27 - November 2 cycle,
it was treated as having occurred on November 2, the last day of the cycle.
New Method
Overtime within the cycle is interpreted as starting from the point when total working hours exceed statutory working hours (excluding daily overtime).
The same criteria are applied on My Work and Employee Work timelines.
The same criteria are applied in daily reports, compensatory leave, payroll settlement, etc.
For example, as shown in the screenshot above, when overtime within the cycle occurred in the October 27 - November 2 cycle,
it is displayed as overtime within the cycle from the point on October 30 when total working hours reached 40 hours.
November 17, 2025 Notice
Setting the Application Date
Please set the application date for the overtime interpretation method so that it does not conflict with the work type's cycle. If set in a way that conflicts with the work type's cycle, the work cycle may appear cut off.
For example:
Monthly flexible work type
The 1st of each month is the cycle start date
Set the application date to the 1st (e.g., December 1)
Fixed / Staggered / Shift work types
Monday is the day the cycle starts each week
Set the application date to the Monday when the cycle starts (e.g., Monday, November 24)
Existing data is preserved regardless of the interpretation method change.
For this purpose, we will allow each client to select a date to apply the new interpretation method.
Application date selection per client will be available starting November 24, 2025.
You will be able to select the application date for a period of just over 2 months, until January 31, 2026.
If you do not select a date by January 31, 2026, it will be applied uniformly as of February 1, 2026. Please note that the cycle start date will also be February 1 when applied uniformly.
January 27, 2026 Notice
Overtime Attribution Date Application Schedule
Settings deadline: January 31, 2026
Past dates cannot be set, so currently you must set the application date within the range of January 27 - February 1.
If no separate settings are made by January 31, 2026, the flex team will apply the following uniformly:
Monday-start cycles (Fixed/Staggered work types, etc.): Automatically applied as of February 2 (Mon)
1st-of-month-start cycles (Monthly flexible work types, etc.): Automatically applied as of February 1 (Sun)
Others: Automatically applied according to the configured cycle start date
Path to Set Overtime Attribution Date
Go to Settings > Work Types, select [Review and Apply] in the top banner > click [Select Application Start Date] in the guide popup
(Or click the guide banner message on the Attendance Management screen)
Scope of Impact
This change affects all areas that use overtime results, including My Work, Employee Work, Attendance Reports, Attendance Dashboard, Compensatory Leave, and Payroll Settlement.
The updated interpretation method is applied uniformly across the entire product, so you can see numbers calculated with the same criteria anywhere.
FAQ
Will existing data be affected?
Will existing data be affected?
All existing data is preserved, and only data after the selected application date will be affected.
However, if the application date changes the start of a cycle, the criteria for determining 'cycle overtime' may change, which could alter the judgment time for past overtime.
I selected an application date in the product but want to change it. How can I do that?
I selected an application date in the product but want to change it. How can I do that?
The product does not provide a feature to change the application date. If you need to change the application date, please contact us through the inquiry button at the bottom right and we will guide you.