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Set up your own employment terms
How to set up your own employment terms – Step 2
How to set up your own employment terms – Step 2
Louise Devantier avatar
Written by Louise Devantier
Updated over a week ago

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.

To have excess hours be suggested through a different shift type such as overtime in Timesheets, select a shift type from the drop down list.

Read more about contract rules here.

Tip: You can also set up rounding settings for Punch Clock entries to track overtime. Read more about rounding settings 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.

Supplement type:

Day-based supplement

If connected to Xero:

Create in Xero as

Overtime

Title:

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

Payroll:

In this example, we set a 50% increase, which will add an additional 50% on top of the employee’s base rate.

Range:

1 week

Employee types:

Part-time and Full-time

Payment days:

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.


See related articles:

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