Step 1 – Primary setup
Step 2 – Secondary setup
⏱ 20-30 minutes
⏱ 25-35 minutes
Complete this step to configure contract rules, shift types and payroll supplements to track ordinary hours and overtime in Planday and how to apply these rules to the employees. We recommend that you have completed Step 1 before proceeding with this article.
1. Create Contract rules
Navigate to Settings > People > Contract rules to create a contract rule. You can create a contract rule for each of the employee types if the contracted hours vary between them. However, you also have the option to individualise it on each employee when applying the contract rule later.
Select the shift types that should count towards the employees’ worked hours. Then select which employee types this contract rule should be available for.
In the next section you need to choose a start date in the past. We recommend aligning this with your pay calendar, so if that starts on a Monday, select a Monday in the past.
Select an interval and define the hours per day/week/month/year. You can add additional rules to set a span of hours or set the maximum hours per day.
Read more about contract rules here.
2. Create shift type for different types of overtime
Navigate to Settings > Schedule > Shift types to create a shift type for overtime. If you have different types of overtime that trigger different overtime rates, we recommend you create a shift type for each type.
Ensure that the appropriate settings are ticked. To learn more about Shift types see Create and use shift types.
3. Create payroll supplements for different overtime rates
Navigate to Settings > Payroll > Payroll supplement to create the overtime rates applicable to your employees.
These rates will apply when the appropriate shift types for overtime are selected when creating the payroll supplement. Learn more about the different types of supplements here.
Below is an example of an overtime rate for the first 2 hours with a 1.5 multiplier.
If connected to Xero:
Create in Xero as
This will be shown on the Payslip
From & To:
00 – 02 hours indicates that this rate will apply to the first 2 hours of overtime. A second rate can be created that goes from 02 - 999 hours to get another rate after 2 hours of overtime
In this example, we set a 50% increase, which will add an additional 50% on top of the employee’s base rate.
Part-time and Full-time
Monday - Friday
4. Apply Contract rules to employees
Once you have created the payroll supplements, you need to assign the contract rules to employees for the configuration to apply to staff.
To assign a Contract rule to an employee, go to the People page, hover over the employee’s name and select the pencil icon to edit.
From the Employment tab, find the Contract rules section and press Add.
Select the Contract rule you wish to apply from the drop-down list or search for it. Set a Valid from date to set when to apply the contract. Press Save to enable the contract rule.
Need more help?
Contact our support team via the blue icon at the bottom if you have more questions.
See related articles: