Short answer: track total hours per week, define the overtime threshold in writing, and calculate it from tracked time. Rules differ by country, so confirm yours.
Tracked hours per week (threshold 40 h)
At home, the workday blurs. People answer messages at night, finish a task after dinner, or start early. Without tracking, that time is invisible, and so is the overtime owed for it.
1. Define your policy
- The weekly hours threshold (for example 40).
- The rate for extra hours.
- Whether overtime needs approval first.
2. Track every hour
Untracked evening work is where disputes start. Automatic tracking removes the guesswork and protects both sides.
3. Review before payroll
Look at weeks that go over the threshold and approve or adjust them before the pay run.
4. Keep records
Keep hours and approvals. They protect you and the employee.
Example
| Week | Tracked | Threshold | Overtime |
|---|---|---|---|
| 1 | 38 h | 40 h | 0 h |
| 2 | 44 h | 40 h | 4 h |
| 3 | 41.5 h | 40 h | 1.5 h |
Avoid
- Letting overtime build without approval.
- Treating salaried staff differently without checking local law. Some are still entitled.
General information, not legal advice. Check local employment rules.
TrustHours payroll supports overtime and short-day rules.
Run payroll from tracked hours