Example: Time Account configuration for Switzerland

Objective

In some regions (e.g. Switzerland), overtime is accumulated in two different time accounts: Overtime and Excess Hours.

All hours worked in excess of the allocated hours and up to 45 hours per week are counted as overtime. All additional working hours (> 45 hours) are counted as Excess Hours. Also, an employee should accumulate a maximum of 170 excess hours per year.

Overtime is built up first, and only when the 45 hour per week limit is reached, excess hours start to accumulate. As an employee should always have as little excess hours as possible, these are the first to be reduced by leave requests or negative working time, and only then overtime will be decreased.

Therefore, the absence type "Excess Hours" escalates to the absence type "Overtime". When all excess hours are consumed, the overtime hours will be reduced.

This page shows you how to configure Time Accounts in Hubdrive to calculate Overtime and Excess hours according to these rules.

Process

HR Manager
Creates Template for Overtime
HR Manager
Creates Template for Excess Hours
HR Manager
Sets up Time Accounts for Employees

Prerequisites

Click Through

Step 1: Create Template for Overtime
  • Start in HR HUB
  • In the lower left corner, switch from Overview to Settings
  • Under Time & Attendance, click on Time Account Configuration Templates
  • Click on + New
  • Fill the fields in the Accumulation Settings as follows:
    • Source Field for Accumulation: Overtime Minutes
    • Collection Period: Weekly
    • Time Unit: Minutes
    • Maximum Accumulation Per Period: 150 minutes
  • Leave the Thresholds For Positive Amounts blank
  • Fill in the settings for Resulting Leave Entitlements as follows:
    • Absence Type For Positive Amounts: Overtime
    • Process Negative Amounts: Select 'Yes' using the button
    • Absence Type For Negative Amount: Excess Hours Compensation
  • Save & Close

 

Step 2: Create Template for Excess Hours

  • Start in HR HUB
  • In the lower left corner, switch from Overview to Settings
  • Under Time & Attendance, click on Time Account Configuration Templates
  • Click on + New
  • Fill the fields in the Accumulation Settings as follows:
    • Source Field for Accumulation: Overtime Minutes
    • Collection Period: Weekly
    • Time Unit: Minutes
    • Maximum Accumulation Per Period: 300 minutes
  • Fill in the Thresholds For Positive Amounts as follows:
    • Threshold Period: Collection Period
    • Threshold (Minutes): 150 minutes
    • Do not include Threshold in Accumulation
  • Fill in the settings for Resulting Leave Entitlements as follows:
    • Absence Type For Positive Amounts: Excess Hours Compensation
    • Process Negative Amounts: Leave this on 'No'
  • Save & Close

 

Step 3: Set up Time Accounts for Employees

  • Start in HR HUB
  • Under Administration, click on Employment Terms
  • Open the Employment Term of the desired Employee
  • In the table for Time Account configurations, click on + New time account configuration
  • In the field Time Account Configuration Template, add the template for overtime you just created
  • Save & Close
  • Add another time account configuration and add the template for excess hours to it
  • Save & Close
  • Once you have created time account configurations, the contracts associated with them have been set valid, and the employee clocks in their working time, time accounts are created.
  • Repeat those steps for all employees whose work time you want to track using Time Accounts.

Hint

  • The first Time Account Configuration Template for Overtime accumulates all working hours between the allocated working hours and 45 hours per week. (Example Screenshot)
    Therefore, the time account should be calculated on a weekly basis and it should be based on the overtime minutes. As the employee in the example use case works 42.5 allocated working hours, the maximum accumulation per period should be set to 150 min (42.5 allocated hours + 150 minutes = 45 hours).
    • No Threshold is needed because all working time more than the allocated working hours should be counted. However, if your company uses employment contracts in which x hours of overtime are automatically compensated with the salary, you can of course define a threshold.
    • The resulting leave entitlements should be created with the absence type Overtime when they are positive, for negative amounts the absence type Excess Hours should be used (because these should always be reduced first. If there are no excess hours available to cover a leave request for example, the escalation is set to Overtime and then Overtime hours will be used automatically).
  • The second Time Account Configuration Template will handle the Excess Hours. (Example Screenshot) 
    • It is crucial to define a threshold here, though, as we do not want the time period between an employee's allocated hours to max. 45 hours per week to be counted twice. The threshold in this example use case is 150 min (which equals 2.5 hours) and should not be included in the accumulation. The time duration of this threshold is already accounted for with the Overtime Time Account Configuration. 
    • When the time account has a positive balance at the end of the week, resulting leave entitlements should be created with the absence type "Excess Hours". Negative amounts should not be processed because this time account can never be negative.

Result

After following all steps, there will be two Time Account Configurations shown in your employee's Employment Term: One for overtime and one for excess hours.
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