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.

Using a 38 Hours Week
Base Hours: 38
Worked Hours: 40
RDO Accrued Hours: 2
With a pay rate of $5.00/ hr (38 hour rate): 40 hours x $5.00 = $200.00
Less 2 hours RDO accrual x $5.00: $10.00 (negative)
Net: $190.00
  • Two hours are held in the employee's RDO bank for payment later.
  • If the RDO Rule has specified that the employee is to be paid at the pay rate that they accrued the RDO bank the $10.00 is stored .
  • This example works regardless of base hours or work cycle. The accrual is the difference between the worked hours and base hours.

 

Facilities for accruing RDO:

  • Hours Types are used to attract RDO (e.g. Normal Hours but not Overtime).
  • 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 provides the employee work enough time to cover the RDO accrual deduction.
  • RDO balances can be manually maintained.
  • The RDO Accrual Process uses the first Hours Code with a Classification of R (e.g. RO precedes 16).

 

Facilities for pay RDO hours:

  • 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 nominated amount regardless of the value, in the bank even if overdrawn.

    OR

  • 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 employees 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.

    If the employee worked 40 hours in a standard 38 hours week, the 40 hours are included and the 2 hours RDO accrual is excluded.

 

In the reference table record under calculation rules, the following need to be established.

  • The Hours Types that attract RDO accrual are nominated. Generally all paid hours, apart from overtime, attract RDO accrual. This can be controlled to suit individual organisations.
  • An Hours Type Code used for the RDO accrual and payment is created with a Classification of R.
  • If only paying the RDO hours that an employee has in their RDO bank and report any unpaid RDO hours on the Employee's pay slip, you must create an Hour Type Codes with a Classification of O.

 

This Hours Type Code is then used for reporting and is entered into the Hours Type for Unpaid Leave field on the Hours Type Code which is used to enter RDO's into Time Entry.

This is used in conjunction with option B in the RDO Print Flag field on the Base Hours Codes window. See more on the Partial Payment section.

  • A work cycle must be established for each RDO cycle using the Base Hours Codes window, including the following.
  • Worked Hours per Day
  • RDO Accrual Method
  • RDO Payment Method
  • The relevant Base Hours code is specified in each relevant employee's Payment Details window.

 

Specify the number of weeks in the cycle and the work hours for each week. In Week 1 of the Worked Hours per Day record the base hours are specified.

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.

As well as adding the worked hours. The week in which the RDO falls due also needs to be specified.

Preceda needs to know how to accrue the RDO balances. There are three options, one of which is specified in the RDO Accrual Method in the week 1 record.

Code Description
W Whole accrual for pays days worked
P Proportion accrual for part day worked
F Full accrual each week regardless of hours worked

 

Finally, specify how to pay the accrual. Three options are available on number of hours to pay and two options on dollar values.

Code Description
F Full accrual payment regardless of RDO bank (see Hours to pay for RDO)
P Pay only what is in the bank up to a given value
T Total bank. This can be any value up to 999.99

 

The Hours to Pay for RDO field on Base Hours Codes window is used to nominate how many hours represents a normal RDO day.

The RDO hours at the rate of pay, at which it was accrued, or at their current rate of pay can be nominated in the RDO Print Flag field.

Code Description
A Employees will accrue RDO and be paid at the rate where the RDO have been accrued. The actual rate used will be an average of the Hours and Values accrued.
B RDO Taken - the employee will be paid at the current hourly rate based on the rules defined in the RDO pay method.
C This is the same with 'A' except that the employee is paid at the current rate of pay for the hours entered.
Blank Not RDO

 

This cycle must be given a Base Hours code that is specified in the employee's Payment Details window.

 An employee's pay journal for 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

 

If the hours an employee worked are the same across the cycle, only specify week 01 of the Base Hours Record. If they are different, specify the complete cycle.

A Base Hours code must be specified in the Payment Details window for each employee, leaving the RDO Day Number, RDO Payment Method and Hours to pay for RDO fields blank.

 

Preceda can be set to pay RDO for the hours in the employee's RDO bank. Any extra hours keyed are either discarded or reported depending on the setup.

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

 

To set this up:

In the Base Hours Codes window, select P in RDO Pay Method. This is for partial payments.

In the Base Hours Codes window, select B in RDO Print Flag.This is for paying only the RDO's in the bank at the current hourly rate.

To report any lost hours setup, an Hours Type Code for Unpaid RDO with a Classification of O (Other Leave); Attach this Hours Type Code to the RDO Hours Type Code in the Hours Type for Unpaid Leave field.

 

RDO's can be included in Leave History as Other Leave. RDO can also be called PDO's and can be entered in the Time Entry window or generated automatically through the Bulk Maintenance window.

  • To generate RDO hours and payments, the methods under Rostered Day Off should be used.
  • RDO as leave allows manual generation only of Time Entry records for payment
  • A Leave Reason Code relevant to RDO must be established as this is a requirement when entering RDO as other Leave.

 

The various Time Entry options allows for the entering of an RDO as Other Leave. Use an Hours Type with a Classification of R - Rostered Days, Reason Code and Start and End dates of the RDO.

  • Position 47 of Program Control option PAY34 can be used to force the entry of dates when RDO's are entered into the Time Entry window.

 

Once the Close Payrun is complete, the RDO, as leave details, can be viewed in the employee's Leave History window.