How to File a Compensatory Time Off Overtime (Rest Day/Holiday CTO)

With the enhancements on the Compensatory Time Off feature on Sprout HR, work done on a rest day and/or holiday can now be converted into leave credits! Keep on reading to know more:

Step 1:  From your Sprout HR dashboard go to My Request > Overtimes > Add

Step 2: On the OT Classification, select Restday/Holiday CTO.  Fill out Start and End for actual overtime hours, then click Apply.

Notes:

• In order to be considered as a valid Rest Day CTO, there must be an approved Schedule Adjustment and biometric logs (What to Apply For when Working Overtime From Home on a Rest Day)
• In order to be considered as a valid Holiday CTO, there must be an approved Schedule Adjustment (regardless of the Holiday Type) and biometric logs (What Applications Should Be Filed During Holidays?)

Step 3: Once sent, the application can now be approved. After approval, the Restday/Holiday CTO application should be converted into CTO Leave Credits, below are the calculation conversion:

Approved RD/Holiday CTO conversion:

Scenario 1: Whole Shift will be converted to CTO

• Schedule Type: Normal Shift
• Shift Schedule: 9:00 AM to 6:00 PM with a break from 12:00 PM to 1:00 PM
• Total hours to work (including the break hours): 9
• Applied CTO: 09:00 AM to 06:00 PM
• Approved CTO Hours: 9 hours
• Biologs: 09:00 AM to 06:05 PM

Given this, the employee would have earned 8 hours worth of rest day/holiday work. Using the formula, the computation would be as follows:

• Overtime hours / total hours to work (excluding the break) = CTO credits
• 8 hours / 8 hours = 1 credit

Scenario 2: Whole Shift and additional hours will be converted to CTO

• Schedule Type: Normal Shift
• Shift Schedule: 9:00 AM to 6:00 PM with a break from 12:00 PM to 1:00 PM
• Total hours to work (including the break hours): 9
• Applied CTO: 09:00 AM to 07:00 PM
• Approved CTO Hours: 10 hours
• Biologs: 09:00 AM to 07:00 PM

Given this, the employee would have earned 9 hours worth of rest day/holiday work. Using the formula, the computation would be as follows:

• Overtime hours / total hours to work (excluding the break) = CTO credits
• 9 hours / 8 hours = 1.125 credits, rounded off to be 1.13

Scenario 3: Half Day work rendered be converted to CTO

• Schedule Type: Normal Shift
• Shift Schedule: 9:00 AM to 06:00 PM with a break from 12:00 PM to 1:00 PM
• Total hours to work (including the break hours): 9
• Applied CTO: 09:00 AM to 12:30 PM
• Approved CTO Hours: 3.5
• Biologs: 09:00 AM to 12:30 PM

Given this, the employee would have earned 3.5 hours worth of rest day/holiday work only as they did not complete the entire shift. Using the formula, the computation would be as follows:

• Overtime hours / total hours to work (excluding the break) = CTO credits
• 3.5 hours / 8 hours = 0.437 credits, rounded off to be 0.44

Scenario 4: Half Day work rendered be converted to CTO

Schedule Type: Normal Shift

Shift Schedule: 9:00 AM to 06:00 PM with a break from 12:00 PM to 1:00 PM

Total hours to work (including the break hours): 9

Applied CTO: 09:00 AM to 02:00 PM

Approved CTO Hours: 4

Biologs: 09:00 AM to 2:00 PM

Given this, the employee would have earned 4 hours worth of rest day/holiday work only as they did not complete the entire shift. Using the formula, the computation would be as follows:

• Overtime hours / total hours to work (excluding the break) = CTO credits
• 4 hours / 8 hours = 0.50 credits

Reminders:

• The Overtime Start and Overtime End are dependent on the earliest logs and latest logs available. This means that outer thresholds may affect the time indicated on the application (All About Thresholds)
• By filing the Rest Day and/or holiday work as CTO, employees will no longer have premiums recorded for work done on these specific cases. Meaning, no premiums will be computed for them as these will be converted into leave credits instead.

With the new enhancement, the following company policies also affect the computation of CTO OT:

• Deduction of Late/Undertime on a Rest Day
• Deduction of Late/Undertime on a Holiday
• Deduction of Late/Undertime on a Holiday that falls on a rest day.

If these are enabled, then they will receive late/undertime deductions as well as valid overtimes. Here's a sample to illustrate further:

• Schedule Type: Normal Shift
• Shift Schedule: 8:00 AM to 05:00 PM with a break from 12:00 PM to 1:00 PM
• Total hours to work (including the break hours): 9
• Biologs: 8:45 AM to 5:00 PM
• Applied CTO: 8:45 AM to 5:00 PM
• Approved CTO Hours: 7.25

Using the formula, the computation would be as follows:

• Overtime hours / total hours to work (excluding the break) = CTO credits
• 7.25 hours / 8 hours = 0.906 credits, rounded off to be 0.91

For their shift on that day, they will also have 45 minutes late deduction since they clocked in later than their expected shift. Though this would also depend on the grace period set for the company (The Two Types of Grace Period on Sprout HR)

If the three company policies are disabled, then the system will disregard any late or undertime minutes incurred during the Rest Day/Holiday work but the basis of the valid overtime is on the earliest and latest logs only. Here's a sample to illustrate further:

• Schedule Type: Normal Shift
• Shift Schedule: 8:00 AM to 05:00 PM with a break from 12:00 PM to 1:00 PM
• Total hours to work (including the break hours): 9
• Biologs: 8:45 AM to 3:00 PM
• Applied CTO: 8:45 AM to 3:00 PM
• Approved CTO Hours: 5.25

Using the formula, the computation would be as follows:

• Overtime hours / total hours to work (excluding the break) = CTO credits
• 5.25 hours / 8 hours = 0.656 credits, rounded off to be 0.66

Feel free to get in touch with us should you wish tor review your company policies!

Related Articles:

• Compensatory Time Off (CTO)
• How to Create a Compensatory Time Off Leave Plan
• How to File a Compensatory Time Off Overtime (Early CTO and Normal CTO)