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Set up overtime

Track overtime hours worked by employees.

Oliver Cook avatar
Written by Oliver Cook
Updated yesterday

You can use Timesheets to track overtime hours. This automatically breaks down overtime into different categories. This is useful for differentiating between the rates at which you pay overtime.

Only employees with administrator or timesheets administrator access can follow the steps below.


Overtime settings

  1. Click your name in the top right, then click Settings.

  2. On the settings menu click Timesheets, then click Overtime.


Select how overtime is tracked

Select your overtime tracking option

  • Each day individually

  • Hours exceeding default working pattern

  • Don't count overtime

📎NOTE: If you use Sage HR integrated with Sage Payroll UK, you must select Each day individually for approved timesheets to send across to Sage Payroll.


Allow employees to move overtime to a time off policy

You can select a time off policy to have employees choose to move overtime hours to. This gives employees the choice of either you paying them for their overtime or increasing their time off allowance. This is the equivalent of time owed in lieu (TOIL).

You can set it so that either:

  • Overtime only goes towards the selected time off policy

  • An employee can choose to split overtime hours to be paid as salary and/or the selected time off policy


Create an Overtime Category

Create overtime categories to break down overtime hours worked.

Overtime categories section in Sage HR settings.


Overtime tracking per group

This allows you to assign overtime categories to track the overtime hours of your timesheet groups.

How do I extract the overtime data for my employees?

Use the Overtime report to retrieve the information on Overtime hours reported by your employees, with breakdown by categories and total per period.


Tracking overtime for part-time employees

To be eligible for overtime payouts, labour codes often require part-time employees to accumulate hours equal to a full-time working day.

To enforce this, you can specify the number of hours to calculate overtime when you set up working patterns.

Create working pattern page showing the Overtime settings section within it.

📎NOTE: Having this parameter set will enable Sage HR to track the overtime for each day only if it reaches this amount of time. For example, if set to 8 hours, overtime calculations will only take into account time worked after 8 hours. Even if the day duration defined in the working pattern is lower.


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