Overtime Requests

Udyamo HRMS provides a structured overtime management system built on the OvertimeRequest and OvertimeSetting models. Employees can submit overtime requests that go through an approval workflow, and approved overtime integrates with payroll for compensation. This chapter covers configuring overtime settings, submitting and approving requests, reporting, and payroll impact.

Prerequisites

Required: Before using overtime management:

• Shifts must be configured (see Creating & Assigning Shifts)
• Attendance policies should be in place, particularly the late-going policy (see Attendance Policies & Rules)
• Approval hierarchy must be configured so overtime requests are routed to the correct manager or administrator (see Roles & Permissions)

Navigating to Overtime Management

1. From the sidebar, click Attendance.
2. Click Overtime from the submenu.
3. The Overtime page displays pending requests, approved requests, and a link to overtime settings.

Understanding Overtime in Udyamo HRMS

Overtime refers to hours worked beyond the employee's assigned shift end time. The system tracks overtime through two mechanisms:

1. Automatic detection — When an employee checks out after the shift end time, the extra hours are logged in the attendance record.
2. Overtime requests — Employees submit formal requests for overtime approval, specifying the date, hours, and reason.

The OvertimeSetting model controls whether automatic overtime is enabled, how it is calculated, and what limits apply. The OvertimeRequest model tracks individual requests through the approval workflow.

Configuring Overtime Settings

Navigating to Overtime Settings

1. From the Overtime page, click Settings or Overtime Settings.
2. Alternatively, navigate to Attendance > Settings and locate the Overtime section.

Overtime Settings Fields

Configuring Settings — Step by Step

1. Open Overtime Settings.
2. Set Enable Overtime to Yes.
3. Configure the Minimum Overtime Threshold. For example, set to 30 minutes to ignore minor check-out delays:
   • If an employee works 15 minutes past shift end, no overtime is recorded.
   • If they work 45 minutes past shift end, 45 minutes of overtime is recorded.
4. Set the Maximum Overtime Per Day to prevent excessive claims.
5. Set the Maximum Overtime Per Month for budgeting and compliance.
6. Configure the Overtime Rate Multiplier based on your compensation policy.
7. If your organization requires advance approval, set Require Pre-Approval to Yes.
8. Click Save.

Warning: Indian labor law (Factories Act, 1948) stipulates that overtime wages must be paid at twice the ordinary rate of wages. Ensure your overtime rate complier meets the applicable legal requirements. Consult your legal team for the correct multiplier.

Overtime Rate Calculation

The overtime rate is calculated based on the employee's basic or gross pay and the configured multiplier.

Calculation Formula

Overtime Pay = (Monthly Basic Pay / Total Working Hours in Month) x Overtime Hours x Rate Multiplier

Example

Per Hour Rate = 25,000 / 176 = INR 142.05
Overtime Pay = 142.05 x 10 x 2.0 = INR 2,840.91

Tip: The overtime rate base (basic pay vs. gross pay) can vary based on your organization's policy and applicable labor law. Verify the correct base with your payroll team.

Employees Submitting Overtime Requests

When to Submit

• Pre-approval required: Before working overtime (the request serves as authorization)
• Post-work submission: After working overtime, within a configurable submission window (e.g., within 3 days)

Step-by-Step: Submitting an Overtime Request

1. Log in to Udyamo HRMS.
2. Navigate to Attendance > Overtime or My Overtime from the self-service menu.
3. Click New Overtime Request or Submit Request.
4. Fill in the required fields:

5. Click Submit.
6. The request is sent to the approver (direct manager or configured authority).

Tip: Encourage employees to provide specific, detailed reasons for overtime. "Project deadline" is less useful than "Completing API integration for Project X, due April 1." Detailed reasons help managers make informed approval decisions.

Request Validation

The system validates the request against configured limits:

If validation fails, the employee sees an error message explaining why the request was rejected.

Approval Workflow

Approval Flow

1. Employee submits the overtime request.
2. The request appears in the approver's Pending Approvals queue.
3. The approver reviews:
   • The date and hours requested
   • The reason provided
   • The employee's attendance record for that date (actual check-in/check-out times)
   • The employee's total approved overtime for the month
4. The approver takes one of the following actions:

Approving an Overtime Request

1. The manager/admin navigates to Attendance > Overtime > Pending Approvals.
2. Clicks on a request to view details.
3. Reviews the request alongside the attendance data for the date.
4. Clicks Approve or Reject.
5. If rejecting, enters a reason for the rejection.
6. The employee is notified of the decision.

Bulk Approval

For managers with many pending overtime requests:

1. Navigate to Attendance > Overtime > Pending Approvals.
2. Use checkboxes to select multiple requests.
3. Click Approve Selected or Reject Selected.
4. For bulk rejection, enter a common reason.

Tip: Review overtime requests weekly to prevent a backlog. Unresolved requests delay payroll processing.

Overtime Request Statuses

Approved Overtime Impact on Payroll

When overtime is approved, it integrates with the payroll module.

How Overtime Appears in Payroll

1. During payrun processing (see Running Payroll), the system totals each employee's approved overtime hours for the pay period.
2. The overtime pay is calculated using the configured rate multiplier.
3. The overtime amount appears as a separate earning component in the payslip:

4. Overtime earnings are added to the gross pay.
5. Statutory deductions (EPF, ESIC, TDS) are calculated on the total gross pay including overtime.

Warning: Overtime earnings increase the gross pay, which may affect EPF and ESIC contributions. Ensure your payroll configuration handles this correctly. See Salary Components.

Overtime Reports

Accessing Overtime Reports

1. Navigate to Attendance > Overtime > Reports.
2. Select the report type and date range.

Available Reports

Overtime Summary Report Columns

Exporting Overtime Reports

1. Generate the desired report.
2. Click Export and choose CSV, Excel, or PDF.
3. The report downloads for external analysis or record-keeping.

Viewing Overtime History

Employee View

1. The employee navigates to Attendance > Overtime or My Overtime.
2. A list of all submitted requests is displayed with:
   • Date
   • Hours
   • Status (Pending, Approved, Rejected)
   • Approver's comments (if any)
3. The employee can filter by status and date range.

Manager View

1. The manager navigates to Attendance > Overtime.
2. Views overtime requests for their direct reports.
3. Can filter by employee, status, and date range.
4. Sees a summary of the team's total overtime for the current month.

Administrator View

1. Administrators see all overtime requests across the organization.
2. Full filtering capabilities: department, office, employee, status, date range.
3. Access to all overtime reports.

Overtime Policies and Best Practices

Defining an Overtime Policy

Establish clear rules for when overtime is permitted:

Best Practices

1. Pre-approval workflow — Enable pre-approval to control overtime costs. Unapproved overtime does not get compensated.
2. Monthly caps — Set monthly overtime limits to prevent burnout and control costs.
3. Regular review — Review overtime reports monthly. Consistently high overtime in a department may indicate understaffing.
4. Comp-off alternative — For exempt employees, offer compensatory time off instead of monetary compensation.
5. Audit trail — All overtime submissions, approvals, and rejections are logged. Use this for compliance audits and dispute resolution.

Tip: Communicate your overtime policy clearly to all employees. Include it in the employee handbook and reference it in the Udyamo HRMS self-service portal.

Compensatory Off (Comp-Off)

Some organizations offer compensatory leave instead of or in addition to overtime pay for work on holidays and weekends.

How Comp-Off Works with Overtime

1. Employee works on a holiday or weekend.
2. Instead of (or in addition to) an overtime payment, the employee earns a comp-off day.
3. The comp-off is credited to the employee's leave balance under a "Compensatory Off" leave category.
4. The employee can use the comp-off as a regular leave day.

Configuration

Comp-off integration with leave management is configured under Settings > Leaves & Attendance > Categories. See Setting Up Leave Categories for details.

Common Issues and Solutions

Integration with Attendance Data

Overtime requests can be cross-verified against actual attendance records:

Managers should review the attendance record alongside the overtime request before approving. The approval screen displays the attendance data for quick reference.

Next Steps

• Configure leave management for compensatory leave — see Setting Up Leave Categories
• Run payroll including overtime earnings — see Running Payroll
• Review attendance reports — see Attendance Calendar & Reports