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Move overtime to a time off policy

Allow employees to move overtime hours to a time off policy in Sage HR instead of receiving overtime pay.

Written by Oliver Cook

When you configure an overtime policy, you can let employees convert overtime into time off.

This gives employees a choice to receive overtime pay or move hours into a time off policy, such as Time Off In Lieu (TOIL).

Enable overtime transfer to time off

  1. Open your overtime policy.

  2. In Add to time off policy, enable Allow employees to move overtime to time off policy.

  3. Choose how you want to handle overtime:

    • All overtime goes to the selected policy

    • Employees can split overtime between pay and the selected policy

  4. Select the time off policy.

  5. Complete the remaining settings.

  6. Select Save.

📌TIP: You can select only one time off policy. Create a dedicated TOIL policy if needed.

How it works for employees

The behaviour depends on your configuration.

All overtime to policy

When you enable Allow to give only to selected policy, Sage HR converts approved overtime into time off automatically.

Split between pay and time off

When you enable Allow to split between paying with salary & give to selected policy, employees choose how many hours to:

  • Receive as pay

  • Move to the time off policy

Sage HR notifies the timesheet approver, who can review and adjust the allocation before approval.​
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Timesheet submission page. Shows a list of overtime categories, with a pay out column and give to time off policy column.

Reporting on transferred hours

You can view transferred overtime in the timesheet export.

This export shows how many hours Sage HR moved to the time off policy.

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