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Weekly thresholds are the number of hours that an employee must work in a week at one rate of pay before a different rate of pay applies. A typical example of a weekly threshold is where an employee must work for 37.5 hours in the week at the basic rate of pay before they can accumulate overtime pay at a higher rate. If the employee has not worked the threshold number of hours at the basic rate, any overtime hours will be reduced and those hours added to the basic rate before any overtime is calculated.

Thresholds override the standard payment structures defined by the timebands that make up the work pattern for each day.

The rules are flexible and can be applied to any combination of analysis codes and any set number of days, not just a week.

Weekly thresholds are applied to individual work patterns using the Thresholds tab on the Work Patterns Maintenance screen.

Note: You must make sure that you apply the threshold to the correct work pattern in the roster.

To maintain thresholds for an individual day, use the Daily Thresholds screen.

To define a new weekly threshold, click New, enter the data required (all the fields on this screen are mandatory) and click Save.

The fields are:

  • Code - a unique identifier which can be up to six alphanumeric characters.

  • Description - a more meaningful name or description for the weekly threshold (e.g. 37.5 Hours Before OT).

  • Minimum Hours - This is the minimum number of hours required for the weekly threshold (in the example above, 37.50).

  • Accumulate from day - The last day in the work plan that the employee can accumulate hours to (e.g. 7). Optimum calculates accumulated hours in reverse (i.e. counting down to the threshold).

  • Accumulate to day - The first day in the work plan that the employee can accumulate hours from (e.g. 1).

  • Accumulate Codes - Select the code(s) that are paid before overtime (e.g. Basic Pay).

  • Reduce Code - Select the code to be reduced (e.g. Basic Pay).

  • Increase Code - Select the code to be increased (e.g. Overtime 1.5).

  • Reduce from day - The first day in the work plan to reduce hours from (e.g. 7).

  • Reduce to day - The last day in the work plan to reduce hours from (e.g. 1).

 

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