Overtime Functionality On Holidays

Overtime Functionality on Holidays
Oracle Corporation
OTL: Overtime
Functionality On
Holidays
Descriptions, Setups and Examples
An Oracle Whitepaper
Oracle Time and Labor Development Team
Author
Reviewed By
Ashok Rajagopal, OTL Development Team

Anima Prasad, OTL Development Manager
Vishwanath Kuchibhotla, HCM Product Management
2
Oracle Time and Labor
CONTENTS
Holidays and Worked hours on Holidays .......................................................................................................................4
Erstwhile Holiday Functionality in OTL ......................................................................................................................4
Drawbacks .............................................................................................................................................................4
Profile Option HXT: Overtime Functionality on Holidays ..............................................................................................7
No Explosion Except Holiday Rule ............................................................................................................................7
Normal Explosion and Holiday Rule .........................................................................................................................7
Points to note while considering this profile option .............................................................................................9
How to set the Earning Group ...............................................................................................................................9
How to setup Holiday Premium .............................................................................................................................9
How to setup Shift Differential Premium ............................................................................................................10
Daily/Weekly/Special Overtime only and Holiday Rule ........................................................................................12
How to set the earning group ..............................................................................................................................14
How to setup Holiday Premium ...........................................................................................................................19
How to set Up Shift Differential Premiums .........................................................................................................20
Daily/Weekly/Special Overtime and Holiday Rule only for Regular .....................................................................23
How to set the Earning group ..............................................................................................................................25
How to set up Holiday Premium ..........................................................................................................................26
How to setup Shift Differential Premiums ...........................................................................................................27
Points to note in setup ............................................................................................................................................28
3
HOLIDAYS AND WORKED HOURS ON HOLIDAYS

Holidays are any kind of Public holidays, Organization Holidays or any other sort of pre scheduled days
on which the employees are not expected to work. Such days are associated with National or regional
festivals usually and are decided at the beginning of the financial/calendar year.
Worked hours on holidays happen when, due to planned/unplanned requirements, an employee is
expected to work on a holiday day. The employee may be paid in a different rate for such kind of work
performed on a holiday.
ERSTWHILE HOLIDAY FUNCTIONALITY IN OTL

OTLRs existing holiday rule is equipped to handle a different rate of payment on holiday days. This is by
the use of a Holiday Rule, which can be defined in the Earning policy form, along with
Daily/Weekly/Special earning rules. Holiday rule is similar to other rules, and it facilitates creation of
tiers of rules and Payroll elements to be paid when the number of hours entered falls in the given tier.
Eg. Holiday rule defined like below.

Table 1
Rule Name
Holiday Regular Rule
Holiday Overtime Rule
Type
Holiday Earning Rule
Holiday Earning Rule
Element
Time Worked (holiday)
Overtime (holiday)
Hours
8
24
If the employee works for 7 hours he gets paid with Time Worked(holiday) element for 7 hrs.
If the employee works for 10 hours he gets paid with Time Worked (holiday) element for 8 hrs, and 2
hours of Overtime (holiday).
This explosion overrides any other rules (Daily/Weekly) in case the day worked is a holiday as defined in
the Holiday calendar. It works like a special daily overtime rule, which takes highest precedence on a
Holiday day. So as per this functionality when an Employee works on a Holiday day, the only thing that
he will get paid is what is defined in the Holiday Rules in the Earning policy.
DRAWBACKS
4
Needless to say, this has drawbacks. The legislative requirements of Daily/Weekly and Special overtimes
are not met with, if a Holiday falls towards the latter half of the week, when the employee has crossed
over weekly overtime.
Here is an example
Table 2
Monday
Tuesday
Wednesday
Thursday
Saturda
y
Friday
Time Worked
12
12
12
12
12
Explosion
Regular
Overtime
12
12
12
4
8
12
Sunday
This is a normal work pattern for many organizations, where there is a Weekly overtime rule defined to
pay the employee in Overtime for hours above 40. The weekly overtime paid is added as part of the
Earning group. On Thursday, which is the Fourth day of the week, Weekly overtime is reached. On the
Fifth Day all the 12 hours falls on to Weekly overtime. Since the employee has worked a total of 60
hours for the week, he is entitled to receive 20 hrs of Weekly overtime.
In case there is a holiday rule defined, and the holiday falls on Monday, the explosion changes like
below, which might still is ok.
Table 3
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
12
Wednesday
Thursday
Friday
12
12
12
12
12
12
4
8
12
Saturday Sunday
8
4
Here, Regular hours on Monday did not get paid. Nevertheless Holiday rule came into calculation there
and paid the employee according to Holiday Rule. This is fine because Holiday Pays would normally be
more than Regular Pay and no legislative requirements are broken here.
5
But, if the holiday falls on the fourth day of the week,

Table 4
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
12
12
12
12
12
12
Thursday
12
Friday
Saturday Sunday
12
12
8
4
Here the scenario differs slightly. On Thursday, the Holiday rule came in and paid the employee as per
the rules. On Friday, since employee has worked 48 hours since then, has exploded into 12 hours. But
this breaks a few legislative requirements. Employee worked for 60 hours in the week, but got paid only
12 hours of Weekly overtime. It can be argued that the holiday Pay on Thursday could have covered the
overtime, but all of it will depend upon how the Labor laws are set up for the organization. If the
legislative requirement says that any hour over 40 SHOULD be paid as Overtime for the employee, we
just broke the law with this kind of explosion.
There you go with the drawback of the existing functionality. The existing functionality was good
enough until Weekly overtime is reached. Once it reaches Weekly overtime, the Holiday rule intervenes
in other Overtime rules, and creates a mismatch in Overtime rules.
6
PROFILE OPTION HXT: OVERTIME FUNCTIONALITY ON HOLIDAYS

With 11iFPKRup5 and R12.1.2, we have the new profile option HXT: Overtime Functionality on Holidays.
This is a site level profile option and can be set to decide the way you want Holiday Rule to function with
the rest of the earning rules. The available profile options are as follows.
NO EXPLOSION EXCEPT HOLIDAY RULE
This option preserves the existing functionality of the application as described above. How this option
works is explained above.
NORMAL EXPLOSION AND HOLIDAY RULE

This profile option is just a combination of all the existing explosions and Holiday Rule. Lets take the
above example of 60 hours worked on a week.
Table 5
Monday
Tuesday
Wednesday
Thursday
Friday
Time Worked
12
12
12
12
12
Explosion
Regular
Overtime
12
12
12
4
8
12
Saturda
y
Sunday
This of course is the explosion when there are no holidays in the Week.
When Monday is a holiday, explosion turns into
7
Table 6
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
Friday
12
12
12
12
12
12
12
12
4
8
12
Saturday Sunday
8
4
Please note that on Monday, for which 12 hours are worked, Regular hours as well as hours as per
Holiday rule got paid.
For a Holiday on Thursday
Table 7
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
Friday
12
12
12
12
12
12
12
12
4
8
12
Saturday Sunday
8
4
As the name of the profile option says, this option makes the Holiday rule apply on top of the existing
explosions.
8
POINTS TO NOTE WHILE CONSIDERING THIS PROFILE OPTION
On a holiday, employee is paid according to Daily/Weekly/Special rule and Holiday rule. This
means that you pay twice for a given hour of work, although in different Payroll elements.
HOW TO SET THE EARNING GROUP

With this profile option, Holiday rules elements work like a premium on the hours worked. So it is
imperative that adding these to Earning group should be avoided at all times. It certainly would topple
up Weekly overtime calculation. For example in Table 6 above, if the elements in Holiday Rule where
added to earning group, explosion will change to the below pattern.
Table 8
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
Friday
12
12
12
12
12
12
12
4
8
12
12
Saturday Sunday
8
4
This happens because the hours paid under holiday rule on Monday got counted towards weekly cap
and the system counts 24 hours for Monday, rather than the 12 hours the person worked for. To avoid
such kind of circumstances, it is advised to avoid including the Holiday rule elements to earning group.
HOW TO SETUP HOLIDAY PREMIUM
A similar case exists while adding a Holiday Premium to act on Holidays for every hour worked. Such a
holiday premium is a requirement for many organizations on top of the Holiday rules and other
overtimes. Premiums may be of any kind. Nevertheless, for this option of the profile, since you are
paying more than the number of hours actually worked, it would make sense to attach the premium to
EITHER the holiday rule elements or Other Regular and Overtime elements and NEVER to BOTH.
Attaching Holiday premiums thru Premium Eligibility Policy to both the set of elements will result in
overpayment of holiday premiums, like below.
9
The below picture shows how duplicate Holiday Premiums appear

Table 9
Monday
Time Worked
Tuesday
Wednesday
Thursday
12
12
12
12
12
12
12
Friday
Saturday Sunday
12
Explosion
Regular
Overtime
Holiday Worked
Holiday Overtime
Holiday Premium
12
12
Holiday Premium
12
For Regular
For Holiday Worked and

Holiday Overtime
HOW TO SETUP SHIFT D IFFERENTIAL PREMIUM

It might be required that Shift Premiums might be paid to the employee when he works on a particular
window of time, say 6 PM to 11 PM. For such cases too, the above point about Holiday Premiums are
valid. If the employee works from 6PM to 11 PM on a holiday day, he gets paid as per the Daily/Weekly
rules and Holiday Rules. So if SDP is attached, to both the set of elements, it would be paid twice.
Consider a case in the above example, where Monday is a holiday, and employee enters start time- stop
time instead of straight hours. He works from 11:00 to 23:00 and is eligible for a Night Shift premium. If
the SDP element is attached via Premium Eligibility Policy to Regular element, Holiday Worked and
Holiday Worked Overtime element, the following explosion will result.
10
Table 10
Monday
Time Worked
Tuesday
Wednesday
Thursday Friday
11:00
23:00
12
12
12
11:00
23:00
12
12
Saturday
Sunday
12
Explosion
Regular
Overtime
Holiday Worked
11:00
19:00
Holiday Overtime
19:00
23:00
SDP
18:00
23:00
SDP
18:00
23:00
12
For Regular
Hours
For Holiday Rule

elements
To avoid this kind of duplication, it is imperative that SDP elements may not be attached thru
PEP to the Holiday rule elements, when using this profile option.
11
DAILY/WEEKLY/SPECIAL OVERTIME ONLY AND HOLIDAY RULE
This is the third and more sophisticated option available for Holiday and overtime for the new profile
option HXT: Overtime Functionality on Holidays. If this is set,
No Regular element will be paid on Holidays.
All overtime (Daily/Weekly/Special) elements that fall on a holiday day will be paid in full
All holiday elements ( elements attached to the holiday rule in earning policy) will be paid for
the total number of hours worked.
To understand this, lets get back to the example of a 60 hour work week. Here is the time
worked and expected explosion when there is no holiday.
Table 11
Monday
Tuesday
Wednesday
Thursday
Friday
Time Worked
12
12
12
12
12
Explosion
Regular
Overtime
12
12
12
4
8
12
Saturday Sunday
When a holiday falls on Monday, with profile option set to this value, the explosion would be
Table 12
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
12
Wednesday
Thursday
Friday
12
12
12
12
12
12
4
8
12
Saturday Sunday
8
4
12
As you can see here, on the holiday no regular element was paid. Holiday rule was paid fully for the
total number of hours. Lets see a scenario with Holiday falling towards the end of the week.
Table 13
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
12
12
12
12
12
12
Thursday
Friday
Saturday Sunday
12
12
8
8
12
As you can see in the above example, on Thursday, which is a holiday, 8 hours of overtime that the
employee was supposed to get was paid. Also, holiday rule got applied for all 12 hours worked during
the day. The 4 regular hours which the employee would have got if the day was not a holiday was not
paid. This is an example of a holiday falling on a day which has regular and overtime to be paid
according to other (daily/weekly) rules. On the holiday, the employee worked for 12 hours, and he got
paid for a total of 20 hours, according to Weekly overtime rule and Holiday rule.
In case the holiday was on Friday instead of Thursday, the following explosion would have happened.
Table 14
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
12
12
12
12
12
12
12
4
8
Friday
Saturday Sunday
12
12
8
4
13

This option being complex as it is, the system is intelligent enough to count the Regular hours that are
not getting paid to be counted towards Weekly overtime cap. So, for this profile option also, it is
imperative that Holiday elements are not added to earning group. The system does not pay the
employee with the regular element, but it knows that a regular element has to be counted on the day,
and weekly cap will be calculated based on the total number of hours worked rather than what is paid.
Lets see this clearer with the above example of Thursday as holiday.
If Friday was not a holiday, the following explosion is expected.
Table 15
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
Friday
12
12
12
12
12
12
12
12
4
8
12
Saturday Sunday
Here employee worked for 60 hours in the week, and he is supposed to get 20 hours of overtime. With
the holiday coming on Thursday, explosion changes as below.
Table 16
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
12
12
12
12
12
12
Thursday
Friday
12
12
8
8
12
Saturday Sunday
14
Here the system assumes the regular element being paid on the day, and does OT calculation with the
below picture.
Table 17
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
Friday
Saturday Sunday
12
12
12
12
12
12
12
12
4
8
8
12
Though this is not paid, system assumes it

is paid, and calculates overtime
accordingly.
To get the scenario clear lets get an example of time worked like below.
Table 18
Monday
Tuesday
Wednesday
Thursday
Friday
Time Worked
12
12
12
12
Explosion
Regular
Overtime
12
12
10
2
12
Saturday Sunday
15
When the holiday falls on Thursday and HXT: overtime Functionality on Holidays is set to
Daily/Weekly/Special Overtime and Holiday rule on Holidays is set, the following explosion occurs.
Table 19
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
Friday
Saturday Sunday
12
12
12
12
12
12
10
2
8
12
Here again, the 10 hours on Thursday, which is the grayed out cell is not paid. But if the system did not
know of this 10 hours, then the explosion would have been like below.
Table 20
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
12
12
12
12
12
2
8
Friday
Saturday Sunday
12
8
4
Note that Friday explodes into 8 hours regular and 4 hours overtime instead of all 12 hours of overtime.
This is because, without the regular element on Thursday, the total number of hours worked for the
week is 12+12+6(all regular, Monday thru Wednesday)+2(overtime) = 32 hours. System has to assume
the Weekly cap is not reached, and will pay 12 hours into 8 regular and 4 overtime hours.
16
Please note that this is not how the explosion happens; it is just an explanation of how a less intelligent
system would have behaved.
To understand how adding Holiday Worked elements to Earning rule would topple up the explosion,
lets go into a 3 tier Weekly rule where anything above 52 hours in a week is Weekly doubletime.
Look at the below explosion.
Table 21
Monday
Time Worked
Explosion
Regular
Overtime
Doubletime
Tuesday
Wednesday
Thursday
12
12
12
12
12
10
2
Friday
Saturday Sunday
12
10
2
The Friday hours are exploded to 10 hours of Overtime and 2 hours of Doubletime, because till
Thursday, a total of 42 hours have been worked. Anything over 52 is to be paid as doubletime.
Lets impose the holiday on Thursday, and see the explosion.
Table 22
Monday
Time Worked
Explosion
Regular
Overtime
Doubletime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
12
12
12
12
12
10
2
Friday
Saturday Sunday
12
10
2
8
4
Note the grayed out cell of Regular hours not being paid and System already knowing it. If System did
not know about it, the following explosion would have happened.
17
Table 23
Monday
Time Worked
Explosion
Regular
Overtime
Doubletime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
12
12
12
12
Friday
Saturday Sunday
12
12
8
4
8
4
Till Thursday, there are a total of 32 hours being worked, and system explodes the 12 hours on Friday to
8 hours of Regular and 4 hours of overtime.
In case you add Holiday worked and Holiday overtime to the earning group, this would be the resulting
explosion.
Table 24
Monday
Time Worked
Explosion
Regular
Overtime
Doubletime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
12
12
12
12
Friday
Saturday Sunday
12
12
8
4
8
4
Since there are 44 hours as per the earning group up to Thursday, system explodes the 12 hours into 8
Overtime and 4 doubletime. Here again the explosion is not right because employee worked for a total
18
of 54 hours in the week, which means he is entitled to receive 12 hours of Overtime and 2 hours of
doubletime.
To avoid all this kind of Overpayment and underpayment issues, the System is equipped to count the
Regular hours paid on the Holiday, even though it is not paid. It also means that adding Holiday Rules
elements on to the Earning group is to be avoided completely because the system automatically takes
care of it.
HOW TO SETUP HOLIDAY PREMIUM

In addition to the normal overtime rules, holiday overtime rules etc, it might be required to set up a
Holiday premium for the total number of hours worked on a holiday. From the above explanation, it
should be clear for you that on a holiday day, Regular elements do not get paid, Overtime elements do
get paid and Holiday rule gets applied for all the hours worked. So it is imperative that Holiday premium
should be attached only to the holiday rule elements. Eg. If you attached Holiday premium thru PEP to
the overtime elements, this is what happens.
Table 25
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
12
12
12
12
12
12
Thursday
Friday
12
12
8
8
12
Saturday Sunday
Holiday
Premium
Holiday
Premium
8
12
For Holiday
Worked and
Holdiay OT
elements
For Overtime
element
19
To avoid these kinds of overpayment, it is imperative that you attach any Holiday Premiums only
to the elements in the Holiday rule if this is the profile option you are selecting.
HOW TO SET UP SHIFT DIFFERENTIAL PREMIUMS

For this profile option, on the holiday days, Regular hours are not paid. But the holiday hours are paid in
full and so are Overtime hours. This would lead to many duplication of SDPs. But the system will take
care of deleting any duplicate SDPs provided for the same period of time. Let us get back to the
example of 60 hours entered in a week, and time entered on Thursday with start time to stop time
instead of straight hours.
Imagine there is a shift premium associated to time from 12:00 Noon to 11Pm at night and time is
entered like below.
This is how explosion would happen if there was no holiday.
Table 26
Monday Tuesday Wednesday Thursday Friday

Time
Worked
12
12
11:00
12 23:00
12
11:00
12 15:00
Saturday Sunday
12
Explosion
Regular
12
Overtime
15:00
23:00
SDP
12:00
15:00
SDP
15:00
23:00
12
Corresponding to the
regular hours
Corresponding to the
Overtime hours
20
Actually the two SDP entries would be combined this is put up to make the idea clearer.
When a holiday comes up on Thursday, the explosion comes up to like this.
Table 27
Monday Tuesday Wednesday Thursday Friday

Time
Worked
12
12
11:00
12 23:00
12
11:00
12 15:00
Saturday Sunday
12
Explosion
Regular
12
Overtime
15:00
23:00
SDP
15:00
23:00
Holiday
Worked
11:00
19:00
Holiday OT
19:00
23:00
SDP
12:00
19:00
SDP
19:00
23:00
12
For Holiday Worked

For Overtime Hours
For Holiday OT
21
This is not paid,
System
Oracle
Time and Labor
assumes this
As you can see here, there is a chance for Duplicate SDPs in case Shift Differential element is attached to
both the Holiday rule elements and the other elements. But it throws a deadlock situation because not
attaching it to Holiday rule element might mean that you wont get SDP paid on a holiday day where you
worked for 12 hours but there are no overtime hours, like when a holiday falls on the beginning of the
week. Not attaching SDP element to Regular or overtime element is not an option because you need
SDP to be paid on normal days too.
Fortunately, system is now equipped to eliminate any of the duplicate sdps. In case of the above
example, system will eliminate the 15:00 to 23:00 entry for SDP because it is a duplicate entry. System
scans thru all the available SDP elements paid and eliminates whichever one is overlapping another or is
the exact copy of another.
22
DAILY/WEEKLY/SPECIAL OVERTIME AND HOLIDAY RULE ONLY FOR REGULAR

This option follows the above profile option closely, but allows yet another complex requirement. There
are organizations which have the rule which states that you need to have all the overtimes(weekly/Daily
etc) paid as a mandate, irrespective of whether the day is a holiday or not, and holiday rules and special
pay should only be applicable in case where the hours are not overtime. So if you set this profile option,
No Regular element will be paid on Holidays.
All overtime (Daily/Weekly/Special) elements that fall on a holiday day will be paid in full
All holiday elements ( elements attached to the holiday rule in earning policy) will be paid, but
only for those hours which should have been Regular in the first place. If the explosion is such
that all the hours worked goes to overtime, no holiday rule is applied.
Here is our 60 hours work week, when there is no holiday attached.
Table 28
Monday
Tuesday
Wednesday
Thursday
Friday
Time Worked
12
12
12
12
12
Explosion
Regular
Overtime
12
12
12
4
8
12
Saturday Sunday
When a holiday falls on Monday, with profile option set to this value, the explosion would be
23
Table 29
Monday
Time Worked
Tuesday
12
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Wednesday
Thursday
Friday
12
12
12
12
12
12
4
8
12
Saturday Sunday
8
4
Here is an example of with holiday falling towards the end of the week, on Thursday. On
Thursday, 4 hours of regular and 8 hours of overtime were to be paid, if it was not a holiday.
Table 30
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
12
12
12
12
12
12
Thursday
Friday
12
12
8
4
12
Saturday Sunday
Holiday rule applied only for

4 hours, which was the
calculated regular hours on
the day.
24
In case Friday was a holiday in place of Thursday, the following would have happened.
Table 31
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
Friday
12
12
12
12
12
12
12
12
4
8
12
Saturday Sunday
No Holiday Pay here

because all 12 hours worked
were counted as overtime.
The Holiday rule applies
only for Regular hours.
In this above example, there is not Holiday pay coming into picture. That is because all 12 hours worked
were moved to Overtime as per the weekly earning rule, and since there are no regular hours, the
Holiday rule finds no place to apply itself.

Earning group setup for this profile option is also pretty much the same as that of the 3 rd profile option.
The elements in Holiday Rule are not to be added to the earning group. The system assumes that they
are summed up, even though they are not paid.
25
Table 32
Monday
Time Worked
Explosion
Regular
Overtime
Holiday Worked
Holiday
Overtime
Tuesday
Wednesday
Thursday
Friday
12
12
12
12
12
12
12
12
4
8
4
12
System does not pay

this but counts it in
overtime calculation.
Saturday Sunday
Holiday rule applied

only for 4 hours of
regular
As is the case with 3rd profile option, having Holiday Rules elements in earning group will result
in unnecessary overpayments.
HOW TO SET UP HOLIDAY PREMIUM

For this profile option, the total number of hours worked on a day are preserved. If the employee
worked for say 10 hours, which was supposed to get paid for 6 hours regular, and 4 hours overtime, he
gets 4 hours of overtime, and 6 hours as exploded by Holiday rule on a holiday. Since the total 10 hours
is preserved, there is no possibility of overpayment of Holiday Premium.
But since there is no Regular element paid, but the system still assumes a regular hours worked, it is
imperative that adding Holiday Premium thru PEP to Regular element is not useful. On the contrary, if
Holiday Premium is not attached via PEP to Overtime elements, the system would not pay Holiday
premium on the Holiday, if holiday falls after Weekly overtime is reached. So the following points are to
be noted.
Holiday Premiums not to be attached to Regular element.

26
Holiday Premiums must be attached to Overtime elements.
Holiday Premiums must be attached to Holiday Rule elements.
HOW TO SETUP SHIFT D IFFERENTIAL PREMIUMS

On Holidays Regular hours would not be paid, but Overtime elements would be paid in full. And for the
regular hours that are not paid, holiday rule will come into effect. It can be safely assumed that Holiday
rule elements and Overtime elements divide the hours between them, and one would not overlap the
other. So, for the case of Shift differential premiums, PEP must hold SDP elements against Holiday
Rules elements, and all overtime elements.
27
POINTS TO NOTE IN SETUP

The following important points have to be complied with for the smooth functioning of the Holiday
Functionality in OTLR.
EARNING CATEGORY
Elements in the Holiday rule are to be created as type Overtime earning, and not Absence or any other
type. An Absence type is used to represent a day the employee did not work, either part of PTO or
otherwise. For an element which denotes the explosion of working on a Holiday, the category should be
Overtime.
MUTUALLY EXCLUSIVE ELEMENTS
Elements in the Holiday Rule should not be the same as Daily/Weekly/Special overtime elements. At
various instances in calculating what should be paid on Holidays, system needs to clearly distinguish
between what is paid as Daily/Weekly/Special overtime and what is paid as Holiday rule. To help the
system identify which is which, it is important to have distinct elements for Holiday Rule.
LIMITING THE HOLIDAY PAY
If the employee works for 12 hours a day, and the Holiday rule is defined only for 8 hours on a day, the
system just pays the employee 8 hours of Holiday pay. In other words, Holiday rule applies for a
maximum of what is defined in the Holiday Rule in the Earning policy. This should be noted while
creating a setup for a case where normally an employee works for a maximum of say 15 hours, but on
exceptions, he might work upto 24 hours. If the system is expected to adjust for this, Holiday rule must
be set up for 24 hours.
This could alternatively serve as a feature for Organizations following Holiday policy of one kind. For
example, a few organizations might have the following rule.
If the employee works on a holiday
All regular/overtime pay as per normal Daily/Weekly explosions prevail.
Any hours worked under 8 should be paid a Holiday pay, over and top of the daily/Weekly
explosions, at a different rate.
For any hours worked over 8, the same rate paid for 8 hours will prevail.
In this case, the Holiday rule setup would have only one rule, upto 8 hours. For all the profile
options, if the employee works more than 8 hours, he gets paid only 8 hours.
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OVERRIDING OF HOURS
Holiday Rule is a form of explosion performed by the OTLR engine. To facilitate this, it is required that
users do not enter elements or enter only the base element type in self service or PUI. If the holiday
Rules element is explicitly entered, it is assumed to be an overridden element and no explosions would
result.
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Overtime Functionality On Holidays

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Overtime Functionality on Holidays

Oracle Time and Labor Development Team