This enhancement allows daily and pay‑period overtime limits to work together seamlessly by supporting separate overtime tags, automatic prioritisation to longer periods, and smooth overflow between tags when limits are reached. It ensures accurate handling of complex scenarios such as overnight shifts that cross midnight, while maintaining compliance with Modern Awards that define both daily and weekly overtime thresholds. The result is more accurate overtime calculations, reduced manual effort, and greater confidence in compliant pay outcomes.
Getting Started
Prerequisites
Before you can use this, your system administrator must configure the appropriate award policy rules. This feature is configured at the award policy level and applies to specific tag rules within the policy.
For System Administrators:
Access to Award Policy configuration.
Understanding of Modern Award requirements for your organisation.
Knowledge of which overtime thresholds apply (daily caps, weekly caps, pay period caps).
Understanding of the prioritisation rules when multiple caps are reached.
For Payroll Officers:
No additional permissions required.
Different Overtime Tags Per Period is applied automatically when configured in the award policy.
Note: This feature must be explicitly configured in your award policy. Existing calculations continue to work unchanged unless the feature is enabled with the appropriate tag rules.
Understanding Different Overtime Tags Per Period
The Problem with Single Overtime Tags
When calculating overtime with both daily and weekly/period caps, a single overtime tag cannot accurately handle scenarios where:
An employee exceeds their daily ordinary hours cap (e.g., 8 hours per day)
The same employee also exceeds their weekly ordinary hours cap (e.g., 38 hours per week)
Both caps are reached on the same day and need to be prioritised correctly
Example Scenario:
An award specifies:
Daily: 8 hours Ordinary, 2 hours paid at OT1.5, then OT2.0 for hours in excess
Weekly: 38 hours Ordinary, 3 hours paid at OT1.5, then OT2.0 for hours in excess (prioritised after being reached)
How Different Overtime Tags Per Period Works
The feature allows you to configure separate tags for different period types, each with their own maximum limits and overflow behaviour. When a tag's limit is reached, hours automatically overflow to the specified overflow tag.
Step-by-step calculation:
Time attendance entries are processed through the award policy.
Tags are applied based on the configured rules and conditions.
Each tag accumulates hours within its specified period (daily, weekly, pay cycle, etc.).
When a tag's maximum limit is reached, excess hours overflow to the designated overflow tag.
Multiple tags with different period types work together, with prioritisation applied when both limits are reached.
Period Types Available
The following period types can be configured for overtime tags:
Period Type | Description |
Shift | Limit applies per shift |
Day | Limit applies per day (based on timesheet date) |
Day (Midnight to Midnight) | Limit applies per calendar day, splitting overnight shifts at midnight |
Week Starting On | Limit applies per week, starting on a specified day |
Pay Cycle | Limit applies per pay period |
Specified Days Aligned To | Limit applies to a custom number of days aligned to a specific date |
Overflow Behaviour
When a tag's maximum limit is reached, excess hours can overflow to another tag. This creates a chain of tags that handle different overtime tiers.
Example Configuration:
Tag Name | Maximum | Period | Overflow To |
Ordinary | 8 hours | Day | OT1.5 |
OT1.5 | 2 hours | Day | OT2.0 |
OT2.0 | No limit | Day | - |
Weekly Ordinary | 38 hours | Pay Cycle | OT1.5W |
Weekly OT1.5 | 3 hours | Pay Cycle | OT2.0W |
Weekly OT2.0 | No limit | Pay Cycle | - |
Prioritisation Rules
When both daily and weekly caps are reached on the same day, the weekly/period cap takes priority. This means:
Once the weekly cap is reached, daily calculations stop.
All remaining hours for the period are paid at the weekly overflow rate.
The daily cap resets for the next period.
Worked Examples
Example 1: Daily and Weekly Caps Working Together
Award Rules:
Daily: 8 hours Ordinary, 2 hours OT1.5, then OT2.0
Weekly: 38 hours Ordinary, 3 hours OT1.5, then OT2.0 (prioritised)
Day | Hours Worked | Ordinary | OT1.5 | OT2.0 |
1 | 10 | 8 | 2 | - |
2 | 10 | 8 | 2 | - |
3 | 10 | 8 | 2 | - |
4 | 11 | 8 | 2 | 1 |
5 | 10 | 6 | 3 | 1 |
6 | 10 | - | - | 10 |
7 | - | - | - | - |
Explanation:
Days 1-4: Daily cap applies (8 hours ordinary, 2 hours OT1.5, excess at OT2.0)
Day 5: Weekly 38-hour ordinary cap is reached, so 3 hours OT1.5 applies, then OT2.0
Day 6: Weekly cap is prioritised, all hours paid at OT2.0
Example 2: Weekly Cap Reached Mid-Day
Award Rules:
Daily: 8 hours Ordinary, 2 hours OT1.5, then OT2.0
Weekly: 38 hours Ordinary, 3 hours OT1.5, then OT2.0 (prioritised)
Day | Hours Worked | Ordinary | OT1.5 | OT2.0 |
1 | 6 | 6 | - | - |
2 | 11 | 8 | 2 | 1 |
3 | 10 | 8 | 2 | - |
4 | 11 | 8 | 2 | 1 |
5 | 12 | 8 | 3 | 1 |
6 | 10 | - | - | 10 |
7 | - | - | - | - |
Explanation:
Day 1: Under daily cap, no overtime
Days 2-4: Daily cap applies
Day 5: Both daily and weekly caps are breached; weekly cap takes priority with 3 hours OT1.5
Day 6: Weekly cap prioritised, all hours at OT2.0
Configuring Different Overtime Tags Per Period
Setting Up Tag Rules in Award Policies
Different Overtime Tags Per Period is configured through the Award Policy using Add Tag actions with maximum limits and overflow settings.
Navigate to Policies > Award Policies.
Select the award policy you wish to configure.
Edit the relevant rule where you want to add overtime tagging.
Add an Add Tag action with the following settings.
Tag Name: The name of the tag (e.g., "Daily Ordinary", "Daily OT1.5").
Apply Max Limit: Enable this to set a maximum for the tag.
Max Amount: The maximum hours for this tag.
Max Per Period: Select the period type (Day, Pay Cycle, etc.).
Overflow Tag Name: The tag to overflow excess hours to.
5. Save the award policy.
Note: It is recommended to use different tag names to differentiate between the daily and period tags.
Example:
Source Column Identification
When tags are processed, the source column in pay run details shows which award rule generated each pay item. The format is:
Award Engine - [Rule Path] - [Tag Name]
For example: Award Engine - 5.1.2.1.1.1.1.1.1 - Daily OT1.5
This makes it easy to identify which specific award rule and tag generated each line item.
How Pay Runs Use Different Overtime Tags
Automatic Application
Once Different Overtime Tags Per Period is configured in an award policy, it is automatically applied during pay run processing. No additional steps are required by payroll officers.
During pay run calculation:
The system processes time attendance entries through the award policy.
Tags are applied based on configured rules and conditions.
Each tag accumulates hours within its specified period.
When limits are reached, hours overflow to the designated overflow tag.
The final tagged hours are used to generate pay items.
Viewing Calculated Results
When reviewing a pay run, you can verify the overtime calculations by:
Opening the pay run.
Reviewing the employee's pay details.
Checking the pay items generated from each tag.
Reviewing the source column to identify which award rule generated each item.
Note: The source column shows the full path of the award rule and tag name, making it easy to trace calculations back to specific award policy configurations.
Overnight Shifts and Midnight Crossing
Handling Shifts That Cross Midnight
When using the Day (Midnight to Midnight) period type, shifts that cross midnight are automatically split at the midnight boundary. This ensures daily caps are correctly applied to each calendar day.
Example:
Employee clocks on at 11pm on Day 1 and clocks off at 7am on Day 2
The 8-hour shift is split: 1 hour on Day 1, 7 hours on Day 2
Daily caps are applied separately to each day's portion
This behaviour is controlled by the Enable Midnight Crossing Fix feature flag, which ensures break deductions and period calculations work correctly for shifts extending beyond midnight.
Backward Compatibility
Existing Award Policies
Implementation of Different Overtime Tags Per Period does not affect existing award policies or calculations that use single tags or different configurations.
Key points:
Existing calculations continue to work unchanged.
The feature must be explicitly configured with multiple tags and overflow settings.
There is a clear distinction between old and new calculation methods.
No existing functionality is broken by the implementation.
Migration Considerations
If you need to transition existing policies to use Different Overtime Tags Per Period:
Review your current award policies and overtime configurations.
Identify which Modern Awards require both daily and weekly/period caps.
Design the tag structure with appropriate overflow chains.
Cease the current version of your award (Recommend ending to coincide with a pay period end date).
Create a new version of your award (Recommend starting to coincide with a pay period start date).
Update the relevant award policies with the new tag configurations.
Test the updated policies in a non-production environment.
Deploy the changes during a suitable pay period transition.
Important: When transitioning to Different Overtime Tags Per Period, be aware that calculated overtime may differ from previous calculations. Review and communicate any changes to affected employees as required.
Troubleshooting
Overtime Not Calculating Correctly
Problem: Overtime hours are not being calculated as expected
Solution:
Verify that the Add Tag actions are configured with the correct settings.
Check that Apply Max Limit is enabled for tags that should have limits.
Confirm the Max Per Period is set to the correct period type.
Ensure the Overflow Tag Name is correctly specified.
Review the rule conditions to ensure they match the expected time attendance entries.
Overflow Not Working
Problem: Hours are not overflowing to the next tag when limits are reached
Solution:
Check that the Overflow Tag Name is correctly specified in the tag configuration.
Verify that the overflow tag exists and is configured in the award policy.
Ensure there are no circular references in the overflow chain.
Review the tag processing order to ensure dependencies are correct.
Weekly Cap Not Prioritising Over Daily Cap
Problem: Daily caps continue to apply after weekly cap is reached
Solution:
Verify that both daily and weekly tags are configured with the correct period types.
Check that the weekly tag's overflow is correctly set up.
Review the award policy rule structure to ensure proper prioritisation.
Confirm the pay period dates align with the expected weekly/period boundaries.
Frequently Asked Questions
Q: Does Different Overtime Tags Per Period apply to all pay items automatically?
A: No, the feature must be explicitly configured in the award policy using Add Tag actions with maximum limits and overflow settings. Only time attendance processed through rules with these configurations will use the feature.
Q: Will enabling this feature change my existing pay calculations?
A: Only for award policies where the feature is explicitly configured. Existing calculations without the new tag configurations continue to use the previous method.
Q: How do I know which tag generated a pay item?
A: The source column in pay run details shows the award rule path and tag name, making it easy to identify which specific configuration generated each pay item.
Q: Can I use different period types for different tags?
A: Yes, you can configure tags with different period types (daily, weekly, pay cycle, etc.) within the same award policy. This is the core functionality of the feature.
Q: What happens when both daily and weekly caps are reached on the same day?
A: The weekly/period cap takes priority. Once the weekly cap is reached, daily calculations stop and all remaining hours for the period are paid at the weekly overflow rate.
Q: Does this feature handle overnight shifts that cross midnight?
A: Yes, when using the "Day (Midnight to Midnight)" period type, shifts crossing midnight are automatically split at the midnight boundary to ensure daily caps are correctly applied to each calendar day.
Q: Can I have multiple overflow chains in the same award policy?
A: Yes, you can configure separate overflow chains for different scenarios (e.g., one chain for daily caps and another for weekly caps). The system processes all tags and their overflow relationships correctly.
Q: What if I configure a circular overflow reference?
A: The system will detect circular references and report an error during tag processing. Ensure your overflow chains have a clear endpoint (a tag without an overflow destination).
Getting Help
If you experience issues or have questions about Different Overtime Tags Per Period:
Review this guide for configuration and troubleshooting information
Contact your system administrator for award policy configuration questions
Refer to Modern Award documentation for official overtime requirements
Check the online help within Definitiv for additional guidance
Contact support if you need assistance with configuration or calculations by raising a case online.