Overtime policies in Sage HR define how the system calculates and categorises overtime for employees. By assigning employees to the correct overtime policy, you ensure Sage HR tracks and reports overtime accurately across your organisation.

An overtime policy defines how Sage HR classifies overtime hours for employees in a timesheet group. The policy categorises overtime hours so you can track and report on them according to your organisation’s rules.

Each employee you need to track overtime for will belong to a timesheet group, and each timesheet group will then need to link to an overtime policy.

Each overtime policy contains one or more overtime categories. Overtime categories let you track different levels or types of overtime, such as:

Each category classifies overtime hours based on how much overtime an employee works. This structure helps you:

Visit our Overtime Categories article for more information.

Sage HR creates a default overtime policy when you first set up the system and assigns it to all timesheet groups automatically.

If all employees follow the same overtime rules, you can continue using the default overtime policy. You can make changes to this default policy.

You can create additional overtime policies when different groups of employees follow different overtime requirements.

Multiple overtime policies give you greater control when:

After you create an overtime policy, you assign it to one or more timesheet groups.