Compensation
- Discover Compensation
- Migration from Overtime balance to Compensation: everything you need to know
- What are overtime policies and how do I create them?
- What is the difference between a time off, pay, and hybrid policy?
- How does the version history of a policy work?
- How do I assign employees to an overtime policy?
- What is the default overtime policy and how does it work?
- How do I manage the policies I've created?
- What are multiplier rules and how do I create them?
- How do I assign employees to a multiplier rule?
- What are categorization rules and how do I create them?
- What happens if I edit the paid clock in/out type associated with a categorization rule?
- How do I assign employees to a categorization rule?
- How do I manage the rules I've created?
- What is the "Prioritize" function and how does it work?
- What is the difference between multiplier rules and categorization rules?
- What are time margins and how do I create them?
- How do I assign employees to a time margin?
- How do I manage the time margins I've created?
- How do I compensate an employee's overtime balance?
- Does accumulated overtime (positive/negative) expire?
- Can I set a maximum limit on positive or negative overtime?
- Where can I view the movement history of an employee's balance?
- What are compensatory absence types?
- Can I customize the columns I see on the main Compensation screen?
- Where can I see the balance generated by each type of rule?
- How does overtime validation work?
- Who can validate or reject overtime requests?
- How do overtime policies, multiplier rules, categorization rules, time margins, and compensatory absence types relate to each other?
- If an employee has both multiplier and categorization rules, how are they combined in the calculation?
- Do time margins affect the calculation of multiplier and categorization rules, or are they independent?
- What is the difference between "validating" overtime and "adjusting" a balance? Can any manager do it?
What is the difference between multiplier rules and categorization rules?
Multiplier rules and categorization rules coexist in Compensation, but they are independent components.
Multiplier rules answer: how much is an hour worth? By applying an economic factor (for example, x1.25 or x1.75) to hours worked under certain conditions, they ensure that time is compensated or paid at a higher value than a standard hour.
Categorization rules answer: what type of hour is it? What they do is "convert" time worked into a category so it can be viewed, audited, and managed separately, without this necessarily meaning it is worth more.
| Multiplier rules | Categorization rules | |
| What they do | Apply a multiplier or percentage to time worked. | Categorize time worked under a label. |
| Result | A balance with a specific multiplier, separate from general overtime. | A classified balance, separate from general overtime. |
| Can be based on | Days of the week or public holidays. | Time slots, brackets of hours, or a paid clock in/out type. |
| Balance destination | Time off, pay, or both with different values. | Compensated with time off or pay, just like the rest of the extra time. |
For example, if you set up a x1.25 multiplier rule for night hours, an hour worked in the early morning generates 1 h 15 min of balance instead of 1 h. If you also have a "Night hours" categorization rule on that same time slot, that hour is labelled as "night" in the system, so you can view, compensate, or pay it separately from the rest of the overtime.
When to use one or the other?
- Use multiplier rules when the goal is for those hours to be worth more (or less) than a standard hour according to the collective agreement.
- Use categorization rules when the goal is to be able to identify, audit, or manage that time separately, even if its economic value does not change.
- If you are unsure which to use for a given case, ask yourself whether you need to change the value of those hours or only need to label them. The answer tells you which type of rule to create.
In Sesame, you can combine rules on the same conditions if your collective agreement requires it; for example, to multiply the value of night hours and also categorize them so they are clearly visible in the employee's statistics.