Smoothing makes it possible to calculate overtime by month and not by week.
This is a tolerated practice, but it does not respect the French Labour Code.
With adjusted overtime, you can compensate for the missing hours of your employees with their overtime or complementary hours, on the weeks included in your pay period.
How does the smoothing option work ?
1️⃣ All weeks in which Sunday is included in the pay period are taken into account
2️⃣ For each week, the number of missing normal, additional and/or overtime hours is counted and added together
3️⃣ The missing hours are subtracted from the following hours in this precise order: normal hours then additional hours then overtime hours
An example will clear it up !
Let's take Matthew, the pay period is from the 1st to the 29th February 2024.
He has a 35 hour contract and has worked the following hours :
W5 : 33 hours → missing 2 hours
W6 : 37 hours → 2 hours of overtime
W7 : 33 hours worked + 7h of paid leave → 2 hours of normal hours
W8 : 36 hours → 1 hour of overtime
W9 : As overtime is calculated on a Sunday, these hours will be accounted for in the March pay period
1️⃣ We have 4 weeks with Sunday included in the period
2️⃣ There are therefore :
2 hours missing
2 normal hours
3 hours overtime
3️⃣ The missing hours are offset by the normal hours, leaving only 3 hours of overtime
How do you calculate the applied amounts of overtime and additional hours ?
If there is any overtime or additional hours remaining, we establish the increments for the entire pay period on the basis of the collective agreement entered in Combo.
The employee's weekly contract time is multiplied by the number of weeks that include a Sunday in the pay period. We then calculate the increments based on this total.
Let's imagine a 4-week pay period. The collective agreement for the account pays 25% extra for hours between 35 and 43 hours:
Let's imagine a 4-week pay period. The collective agreement for the account pays 25% extra for hours between 35 and 43 hours :
35h * 4 weeks = 140h
43h * 4 weeks = 172h
Worked hours between 140h and 172h are increased by 25%.
So our 3 hours of overtime are well within this tier and are increased by 25%.
You are now a pro at calculating adjusted overtime ! 🥳
Don't panic, if you're ever unsure, you can always contact us on the chat !