How do overtime policies, multiplier rules, categorization rules, time margins, and compensatory absence types relate to each other?
Think of the Compensation system as layers applied in order over the time worked by an employee:
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Time margins decide when time starts to count as overtime (through clock in/clock out tolerance and the minimum hours required for it to start adding up).
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Multiplier rules define the value of each hour according to the conditions in which it was worked (night slots, public holidays, time slots); categorization rules classify that time into categories of their own (travel, night hours, etc.) so they can be viewed separately.
- The overtime policy establishes how that balance will be managed: whether it is compensated with time off, pay, or both, how often the validation period closes, when it expires, and what limits exist.
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Compensatory absence types define the specific time-off types (e.g., Regular overtime balance, Public holidays worked) to which time is sent when it is compensated with time off.
In summary: margins and rules generate and nuance the time; the policy decides what to do with the balance; and compensatory absence types define what type of time off the overtime materializes into.
