RDO - Rostered Days Off

The RDO option is used to average an employee's pay over a given period. It involves an employee working a longer working day so that extra time can be taken off at a later date.

The extra time worked is not paid in the pay period of working, but paid later when the accumulated time is taken off. This gives the employee a consistent pay for each pay period.

Preceda has the ability to cover different types of RDO's such as rotating rosters where excess hours worked are held or banked which makes up the short weeks with the excess hours held in the RDO bank. Time off without pay is also catered for.

Only one rate of pay is used for RDO. The amount of RDO accrual is the difference between the worked hours and the base hours. This generates a negative payment to reduce the employee's pay to his or her base hours.

Rules and Guidelines

• Hours Types are used to accrual RDO's
• Nominate how to accrue part days worked as either Full Accrual or Proportional Accrual

• A Full Accrual for each week worked regardless of the actual worked hours for that week can be nominated. This is providing the employee worked enough time to cover the RDO accrual deduction.
• ROD balances can be manually maintained.
• The RDO Accruals Process uses the first Hours Code with a Classification of R. e.g. RO will precede 16

The facilities for pay RDO hours are:-

• Automatic payment of RDO
• Nominate the week cycle number the RDO is to be paid, week number 01 to 05
• Nominate the amount of RDO that is to be paid automatically
• Pay the balance in the bank, up to a given value or Pay a nominate amount regardless of the value, in the bank even if overdrawn
• Pay the total of the RDO bank
• Nominate the rate of pay to use to pay the RDO. It may be the current rate or the rate that was used to accrue the RDO.
• The payment of the RDO if the employee does not take the RDO when it is due can be suppressed
• manually pay the RDO
• A group of employees that work an RDO roster can be nominated. A code is setup to identify the roster group and then assigned in the employee's Master File record.
• The Hours Types to be included in the costing can be nominated. Therefore the RDO accrual and payment which enables the cost as the time occurs can be excluded

Setting Up RDO's

1. Identify all Hours Type Codes that are to be flagged as being used to accumulate RDO hours. Flag each Hours Type Code by entering Y in the Include in RDO Calculation field. e.g. Normal Hours but not Overtime
2. To allow for the reporting of any unpaid RDO hours, create an Hours Type Code with a Classification of O.
   
3. Create an RDO Hours Type Code with a Classification of R. Preceda, in most cases provides code 16 as the standard RDO Hours Type Code.
   If an Hours Type Code was created to report on unpaid RDO hours, entered this code into the Hours Type for Unpaid Leave field.
4. The Base Hours Codes window is used to create each RDO work cycle, this includes the number or worked hours per day, the RDO Accrual Method and the RDO Payment Method.
5. Allocate the appropriate RDO Base Hours Code to the employee on the Payment Details window.

Standard RDO Setup

Preceda can be setup to pay ROD for only the employee's accumulated RDO hours. An extra hours keyed are either discarded or reported depending on the setup.

Example If an employee has 5 hours in their RDO Bank and 8 hours of RDO is entered, only the 5 hours will be paid discarding or reported as RDO unpaid the 3 hours remaining.

1. Create an Hours Type Code with a Classification of O
2. Create a Base Hours Code with the following parameters:-
   - Set the RDO Pay Method field to P Partial
   - Set the RDO Print Flag to B RDO Taken - Paid at employee current rate of pay based on the rules defined in the RDO Pay method
3. Attach the Hours Type Code with a Classification of O to the Hours Type Code for Unpaid ROD into the Hours Type for Unpaid Leave field.

 

Four Week RDO Cyclic Setup

Specify the number of weeks in the cycle and the work hours for each week.

1. Using the Base Hours Code window, record the base hours into the Worked Hours - Day 1 field and the

Base Hours - 38 Monday Tuesday Wednesday Thursday Friday Saturday Sunday Week 1 8.00 8.00 8.00 8.00 8.00     Week 2 8.00 8.00 8.00 8.00 8.00     Week 3 8.00 8.00 8.00 8.00 8.00     Week 4 8.00 8.00 8.00 8.00 8.00

 

• Even though one of the days listed would be an RDO day, the hours must still be specified in the event an employee does not take the day off when due. RDO is accrued if it is worked.
• The cycle is repeated, so that when the Payrun is processed the week number being processing is specified. Therefore different work cycles need to be synchronised.

 

2. From the Base Hours Code window specify the following:-

• How to accrue RDO Balances, using the RDO Accr Method field
• How to pay the accrual, using the RDO Pay Method field
• Nominate how many hours represents a normal RDO day, using the Hours to Pay for RDO field.
• Nominate the RDO hours at the rate of pay, at which it was accrued, or at their current rate of pay can be nominated using the RDO Print Flag field.

Example  An employee's pay journal for the 4 weeks could be:- Weeks 1, 2 and 3:- Weeks 1, 2 and 3   Normal 40.00 hours at $5.00 200.00 RDO accrual 2.00 hours at $5.00 -10.00 Normal 38.00 hours at $5.00 $190.00 Week 4   Normal 32.00 hours at $5.00 160.00 RDO accrual -1.60 hours at $5.00 -8.00 RDO payment 7.60 hours at $5.00 38.00 Normal 38.00 hours at $5.00 $190.00

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