Overtime Reduction

Available to: Owner, Admin

Overtime reduction (Zeitausgleich) is a leave type where an employee takes time off and a specific number of overtime hours are deducted from their balance. It's the standard Austrian approach to compensating overtime with time off instead of pay.

How it works

When you create an overtime reduction leave entry:

1. You specify the number of overtime hours to deduct
2. You set the date(s) for the time off
3. Once the date passes, those hours are deducted from the employee's overtime balance

The key detail: overtime reduction only takes effect once the date has passed. Future-dated overtime reduction entries are visible in the system but don't affect the current balance until the date arrives.

Creating an overtime reduction

1. Go to Leave Requests
2. Click + New Request
3. Select the Employee
4. Set Type to Overtime Reduction (Zeitausgleich)
5. Set the Start date and End date
6. Enter the Overtime hours to deduct
7. Click Submit

The request follows the normal approval workflow. See Approve and Reject.

How it affects the overtime formula

In the overtime calculation:

Overtime balance = (Actual hours + Leave credits + Overtime reduction hours) - Expected hours - Baseline

The overtime reduction hours are added to the "worked" side of the equation. This might seem counterintuitive, but it's how the math works out: adding hours to the numerator while the employee didn't actually work reduces the net overtime.

The reduction uses the exact number of hours you entered in the overtime_hours field. It does not use a daily rate.

Example

An employee has 12 hours of overtime. They take one day off as overtime reduction with 8 hours deducted.

• Before: 12 hours overtime
• Overtime reduction: -8 hours
• After: 4 hours overtime

The employee gets a day off, and their overtime balance goes down by 8 hours.

Important details

Exact hours, not daily rate

When entering overtime reduction, you specify the exact number of hours to deduct. The system uses this number as-is. If an employee normally works 8-hour days but you enter 6 hours, only 6 hours are deducted.

Only effective after the date

If you create an overtime reduction for next Friday, the overtime balance won't change until next Friday actually passes. The Dashboard shows the current balance based on actual dates, not future plans.

Shows on the schedule

Overtime reduction days appear on the schedule calendar with a grey indicator. This helps you see that the employee is off and why.

Tip: Use overtime reduction strategically. If an employee has accumulated too many overtime hours, schedule them for overtime reduction during slower weeks rather than cutting shifts, which can affect coverage.