Setting up pay rules

Are you setting up a legacy timesheet?
If your Administration > Pay Codes and Policies menu shows Overtime Rules rather than Pay Rules, refer to Setting up legacy Replicon timesheets > Creating overtime rules for information relevant to your version of Replicon.

Pay rules define how employees are paid, and are typically based on the labor laws of the employee's jurisdiction. They can factor in overtime work, holiday, premium pay conditions, meal breaks, and just about any other parameters that are used to determine a worker's pay.

Replicon provides a library of pre-defined pay rules that you can enable in your system. We currently offer out-of-the-box rules for:

We are currently working on adding many more international pay rules. Refer to About the pre-defined pay rules library for a full list of the default rules we offer, along with links to information on the labor codes the rules are based on.

If we don't a pre-defined rule that meets your organization's needs, we can create a new pay rule to fit your requirements.

A note on compliance
We work hard to ensure the pre-defined pay rules match the current labor laws of each jurisdiction. However, we cannot guarantee that using the rule for a given region will put you in compliance with all employee pay regulations for that region. Please confirm that the pay rule you use meets all applicable labor laws for your jurisdiction.

Using a pre-defined pay rule

To use a pre-defined pay rule:

  1. Go to Administration > Pay Codes and Policies > Pay Rules.
  2. Click the name of the pay rule you wish to use. The Pay Rule Details section of the page that displays shows a description of the rule. 
  3. Confirm the rule meets your organization's needs and legal obligations.

Editing a default rule

If you'd like to modify certain parameters of the default rule, you can make a copy of it and then edit the copy. To copy a rule, click the Make a Copy of this Pay Rule link at the bottom, right-hand corner of the page. Or, from the Pay Rules list page, you can select the rule, then click More > Make a Copy.

  1. If an Available for use in section is available, select the group(s) the rule will apply to. For example, you may wish to set a Location to make sure a specific rule can only be assigned by administrators who have access to the California group.

  1. Click Save.

The pay rule is now ready to be assigned to users.

Creating a new pay rule

If none of the pre-defined rules meets your needs, you can create a new pay rule. Alternatively, contact your Customer Success representative or Replicon Support to inquire about having a rule created for your region.

To create a new pay rule:

  1. Go to Administration > Pay Codes and Policies > Pay Rules.
  2. Click the Add Pay Rule button. A blank pay rule is created.
  3. Enter a name, description, and region, and select a country for the pay rule.

  1. Adjust the parameter settings to meet your needs. The Pay Rule Details section shows the names and descriptions of the parameters that are available for use in your new rule. Refer to Pay rule calculation examples for examples of how the parameters are used in pay calculations.

  1. If an Available for use in section is available, select the group(s) the rule will apply to. For example, you may wish to set a Location to make sure a specific rule can only be assigned by administrators who have access to the London group.
  2. Click Save.

The pay rule is now ready to be assigned to users.

Assigning pay rules to users

Assign pay rules to users via the Payroll side menu of their user profiles. Pay rules will only apply to timesheets generated after the rule is assigned. Existing timesheets will not use the new pay rule unless they are reopened and saved.

If users are using the Standard or In/Out legacy timesheet formats, enable the Calculate pay using Pay Rules option in their assigned timesheet templates.

FAQs

What are overtime rules and how do they relate to pay rules?

Overtime rules can be used to calculate pay for employees using the Standard and In/Out timesheet formats. The assigned overtime rule applies to these users unless the Calculate pay using Pay Rules option is enabled in their timesheet template. In this latter case, their assigned pay rule will apply instead.

For users using the Configurable timesheet format, only pay rules are used to calculate pay.

Can we use two different pay rules in combination?

No, each user can only be assigned a single pay rule.

Do pay rules include time off?

Most pay rules include an Include Time Off parameter that you can use to define whether the pay rule factors in time off.

For example, if you have a weekly rule that pays hours worked up to 40 at one rate (or pay code), and overtime at a different rate, you can specify that time off hours should count towards these totals by enabling the Include Time Off option.

How does a user know they’ve earned overtime?

Once a pay rule is assigned to a user, Replicon calculates overtime hours each time the user saves or submits their timesheet. The last calculated number of overtime hours is displayed on their timesheet.

What is 7th Day Premium?

7th Day Premium applies to hours worked on the seventh day of the employee’s Work Week, if they worked all six preceding days. All seven days must fall within the user's assigned Work Week.

What do I do if there isn't a rule for my region?

If no rule exists for your region, you can create a new rule to meet your needs. Alternatively, contact your Customer Success representative to inquire about having a rule created for your region.

Related links

About the pre-defined pay rules library
Using the Compliance Dashboard
Setting up meal break enforcement and waivers
How is pay calculated?
Pay rule calculation examples