Overtime
Overtime Management
Overtime is one of the most important units in the human resources system, allowing companies to accurately manage employee overtime hours, whether automatically detected through attendance and departure records, or manually recorded by administrators.
The unit aims to ensure financial calculation accuracy, improve record transparency, and facilitate review and approval processes for overtime requests.
It is an integrated system within HR System aimed at accurately controlling overtime hours, whether automatically recorded from employee attendance and departure… or manually recorded based on an overtime request.
Main Objective of Overtime Unit
- Eliminate randomness in hour calculation: Ensure accurate and organized calculation
- No overtime hour lost for employee: Protect employee rights
- No incorrect payments from company: Financial protection for company
- Give management clear view of overtime costs: For informed financial decisions
Use the overtime system regularly to ensure financial calculation accuracy and protect all parties' rights.
Second: Importance of Overtime Unit for the Company
1. High Accuracy in Hour Calculation
The system calculates the actual time between check-in and check-out and determines whether it is within working hours or overtime.
Automatic calculation ensures high accuracy and reduces human errors in calculations.
2. Fairness and Accuracy in Payroll
No overtime hour will be lost for the employee… and no extra hour will be calculated for the company without documentation.
Fairness in calculations protects employee rights and ensures the company doesn't pay unjustified amounts.
3. Reduce Conflicts Between Employees and Management
Every hour is documented:
- Check-in time
- Check-out time
- Reason for overtime
- Approval or rejection
Complete documentation of every overtime hour prevents conflicts and ensures transparency in transactions.
4. Protect Company from Manipulation
If an employee says "I worked extra"… the system automatically reviews their record and reveals the truth.
The system automatically verifies claim validity and protects the company from incorrect claims.
5. Provide Strong Financial Reports
The company knows monthly how much overtime was paid for each department/employee.
Financial reports help management in financial planning and cost monitoring.
Third: Overtime System Features
1. Automatic Detection of Overtime Hours
The system alone detects the difference between:
- Official check-out time
- Actual check-out time
And classifies the hours → overtime.
Automatic detection ensures no overtime hour is lost for the employee.
2. Ability to Add Hours Manually
If a manager requests an employee to stay extra… it can be entered manually.
Manual addition is useful for special cases that are not automatically detected.
3. Approve or Reject Hours
Every hour must go through a review stage.
4. Automatic Payment Rate Calculation
The system determines per day:
- Regular → 1.25x
- Official Holiday → 3x
- Weekend → 2x
- Night → 1.5x
Automatic payment rate calculation ensures correct application of financial policies.
5. Send Approved Hours to Payroll
With one click, all hours are sent to payroll.
6. Detailed Tracking for Each Record
Every operation has date, time, reason, and employee name.
Recording Overtime
This page is the designated place for manually entering overtime hours for any employee. It is usually used by the human resources department or supervisors to add hours that were not automatically detected or to enter special overtime for a specific reason.
Page Importance
- Record any overtime hours not automatically recorded by the system
Example:
-
Work outside company premises
-
Work hours completed without attendance recording
-
Emergency assignments outside working hours
-
Automatically calculate overtime value
The system applies the appropriate payment rate (1.25x – 1.5x – 2x… etc.) based on:
-
Time
-
Day type (regular – weekend – official holiday – night)
-
Document hours officially before sending to payroll
Making the payroll process accurate and transparent.
Make sure to enter all details correctly before saving to ensure financial calculation accuracy.
Steps to Record Overtime
Step 1: Select Employee
(Appears automatically when opening the form)
Step 2: Specify Overtime Date
Example: 31/12/2025
Step 3: Enter Start and End Time
Example:
- From: 18:00
- To: 20:00
The system then calculates: 2 hours overtime
Make sure to enter time accurately to ensure correct calculation of number of hours.
Step 4: Verify Payment Rate
The system selects it automatically based on the day.
Example:
If the day is an official holiday → shows 2x
You can change it if needed.
Payment rate varies according to day type and company financial policies.
Step 5: Write Reason
Example:
- "Manager assignment"
- "Urgent project completion"
- "Technical support outside working hours"
- "Hours not automatically recorded"
Writing the reason is important for documentation and later review. Make sure to write a clear and detailed reason.
Step 6: Save
The record is added to:
- Overtime page
- And can be reviewed and approved or rejected by manager or HR
How Does the System Calculate Overtime Pay?
Calculation Formula:
Number of Hours × Hourly Rate × Multiplier
Example:
40 EGP × 2 hours × 1.25 = 100 EGP
The system performs the calculation automatically when sending records to payroll.
Automatic calculation ensures amount accuracy and reduces payroll errors.
Sending Overtime to Payroll
This page is dedicated to the final step in the overtime management cycle… which is adding the value of approved overtime hours to the employee's salary officially.
Its Importance
The page is considered the financial transfer stage, meaning:
- Convert approved overtime hours to actual financial amount: Added to employee's account in monthly salary
- Review overtime hours before adding them: To ensure everything is correct before recording the amount
- Automatic value calculation: The system calculates overtime hour value based on:
- Employee hourly rate
- Payment rate (1.25x, 1.5x, 2x…)
- Day type (regular – holiday – official day…)
- Display total to be added for all employees: In the specified currency for each employee (EGP – SAR – USD…)
Make sure to review all hours before sending to payroll to ensure financial amount accuracy.
1. Ready-to-Send Overtime Hours Table
Contains:
- Employee Name: Know the owner of the hours
- Department: Employee's department
- Number of Approved Overtime Hours: Accepted hours
- Payment Rate: (Example: 1.5x)
This shows the hours that have been accepted and are allowed to be transferred to payroll.
2. Total Amount Due
At the bottom of the screen appears:
- Total Amount in Egyptian Pounds
- Total Amount in Saudi Riyals
- (Or any currency according to employee)
Meaning: This is a summary of everything that will be added to monthly salaries.
Reviewing the total before sending helps verify amounts and financial planning.
Overtime Record Details
This page is a detailed window displaying all data for an overtime request or record (Overtime Record) for one of the employees. It is usually used by the human resources department or direct manager before making a decision to accept, reject, or modify data.
Its Importance
- Accurate review of all recorded overtime details: The main goal is to ensure data accuracy before approval and sending to payroll
- High transparency in tracking overtime records: The page provides all information:
- Name – Job Title – Department – Record Type – Date – Duration – Detection Type – Actual Check-in and Check-out Time
- Make correct decision (approve – reject – modify): Without needing to return to other screens
- Ensure error handling before payroll calculation: Because any error in entering hours leads to incorrect final salary calculation
Displayed Data
1. Employee Name
Example: Basma Shehata
To identify the record owner.
2. Job Title
Example: Senior Business Analyst
Helps know the job category and record relevance.
3. Department
Example: Software Department
To identify the department responsible for the employee.
4. Record Type
Example: Automatic Detection
Shows whether overtime:
- Was automatically detected by the system
- Or was manually entered
Record type helps understand data source and reliability level.
5. Date
The day on which overtime was recorded.
6. Scheduled Shifts
Shows the employee's original shift time, example:
07:00 → 15:00
This helps know if the hours are actually overtime.
Comparing shift time with actual check-in and check-out time helps verify record validity.
7. Actual Check-in
The time the employee recorded their attendance.
How to Use the Page
Step 1: Review Data
Read:
- Check-in time
- Check-out time
- Detection type
- Is the record logical and matches the shift?
Step 2: Make Decision
You have 3 options:
Approve
If the hours are correct and the employee deserves approval.
Reject
If the record is incorrect or doesn't match policies.
(When clicking reject, a window appears to enter rejection reason.)
When rejecting, make sure to write a clear reason to help the employee understand the decision.
Modify
If the record needs modification of check-in time, check-out time, or payment type.
Step 3: Execution
After making the decision, the record status is updated:
- Approved: Moves to "Ready to Send to Payroll" list
- Rejected: Returns to employee
- Modified: Updated immediately
All changes are logged in the system record with manager name and modification time.
Fifth: System Importance for Management and Employees
For Management:
- Prevents errors and overpayments: Financial protection for company
- Protects company financially: Prevents paying unjustified amounts
- Reduces complaints: Through transparency and accuracy
- Provides very accurate financial reports: For informed decisions
Use financial reports to monitor overtime costs and make strategic decisions.
For Employee:
- Ensures 100% employee right: No overtime hour lost
- Knows reason for accepting or rejecting any hour: Complete transparency
- Work is clear and documented: Protects their rights
System transparency helps employees understand how overtime is calculated and builds trust.
Sixth: Practical Examples
Example 1: Automatic Overtime
Employee: Ahmed Mohamed
Shift: 08:00 → 16:00
Actual Check-out: 18:00
Overtime Hours: 2 hours
Rate: 1.25x
Status: Approved
This is an example of overtime that was automatically detected and successfully approved.
Example 2: Manual Overtime
Employee: Mona Ahmed
Reason: Manager assignment
Hours: 3 hours
Rate: 2x (weekend)
Status: Under Review
This is an example of overtime entered manually due to a special assignment.
Example 3: Rejected Overtime
Employee: Khaled Ali
Reason: Doesn't match policies
Status: Rejected
Rejection Reason: "Overtime was not pre-approved"
In this case, overtime was rejected due to not following required procedures.
Seventh: Integration with Other Systems
The overtime system integrates with:
1. Attendance System
Automatic detection of overtime hours from attendance records.
2. Payroll System
Automatic sending of approved hours to salary calculation.
3. Leave System
Considering leave days in payment rate calculation.
4. Shifts System
Comparing shift time with actual work time.
Integration with other systems ensures calculation accuracy and smooth information flow.
Section Summary
Overtime Management = A smart system that prevents loss of rights, prevents manipulation, and ensures payroll accuracy. The system provides automatic detection of overtime hours, ability for manual addition, review and approval of hours, and automatic amount calculation. Through this system, companies can ensure fair payment for employees and financially protect themselves from incorrect claims.