Custom rules are created by going to Compliance > Customise Your Setup > Custom Award Rules:
To create a new Award Rule, click on the green + Create award rule button in the top right corner:
Award rules are used to determine what the employee should be paid based on certain factors such as the day, time, total number of hours worked and type of work the person is doing. The types of award rules you can create in Tanda are base rates, special ordinary hour rules and overtime hour rules.
A base rate is a what an employee is paid hourly. For example, a casual staff member may be paid a base rate of $21.90 per hour. Base rate rules will be counted as ordinary hours when applied on timesheets.
Ordinary hours rule
Special ordinary hours rules is where staff are paid differently based on certain working conditions. For example, all casual staff members are paid x1.25 their base hourly rate on weekends.
Overtime hours rule
Overtime hours rule is used to pay staff at a higher rate when they work outside of their ordinary hours. For example, an employee is paid x1.5 their base hourly rate when they work longer than 7.6 hours in a day.
Creating award rules
The award rule builder is split into four sections:
In this section you give the award rule a name and select who it should apply to. Both of these sections are required to be completed.
(a) Name the Award Rule
Give the rule name to identify your award rule. This will show up on the employee's timesheet. You can add a description that provides further detail when it appears on the timesheet.
(b) Who will it apply to ?
Here you choose which staff the rule will apply to by choosing either all staff or staff categorised by tags. You can add additional considerations by selecting an age range or probation period for the selected staff.
It is recommended that to have your award rule applying to specific types of employees rather than all employees. For example, creating separate rules for “Full Time”, “Part Time” and “Casual” types of employment.
An award rule can be either ordinary hours or overtime hours. Ordinary hours are the employee's normal and regular hours of work, which contribute to superannuation payments. Overtime hours are hours worked by the employee that are outside of their usual work pattern and generally paid at a increased rate.
Conditions are the details that allow the rule to apply to staff under the appropriate circumstances.
After number of hours worked
This condition is used to specify when an overtime rule should apply. The rule can apply after ordinary hours or overtime hours have been worked by the employee.
After ordinary hours have been elapsed:
This option covers overtime after [x] number of ordinary hours has been worked in the week or pay period. For example, use this option if you are creating a 150% overtime rule when the employee works over 38 hours in the week or over 7.6 hours in the day.
After overtime hours have been elapsed:
Use this option if the employee is meant to receive a different overtime rate once [x] hours of overtime has been worked. For example, use this option if you are create a 200% overtime rule if the employee has worked over 38 hours in the week and 3 hours of overtime has already passed.
By default the rule will apply every day but this condition allows you to select the specific days you want it to only apply on.
In order to be specific, the best way to break it up is into the following categories:
- Monday to Friday;
- Sunday and
- Public Holidays.
Here you can select a time range for the rule to apply. The options include hours worked between the times selected, when the employee starts work, and when the employee finishes work. You will typically only need to use ‘Workdays starting between’ and ‘Workdays ending between’ if you are creating shiftworker rules.
Hours worked between:
The award rule will only apply if the person is working between the two starting times.
Workdays starting between:
The award rule will apply if the person clocks in within the specified hours. For example, if I enter for shifts starting between 2:00am and 6:00am. The rule will apply if I clock in at 3:00am until I clock out for the day.
Workdays ending between:
The award rule will apply if the person clocks out within the specified hours. For example, if I enter for shifts ending between 6:00pm and 11:00pm. The rule will apply if I clock out at 7:00pm.
This condition allows you to add additional specificity to rules by specifying whether it should or should not apply to an award tag or team. For example, if 'Uniform Required FT' is selected on the timesheet then the award rule will apply.
Note: Use the Exclude Option only as a last resort when you cannot get rules to apply on the timesheet correctly. This does not necessarily make a rule more specific and may impact all the rules applying to the tag associated to the employee.
Minimum shift length
Select this field if you need to build a rule where a person is required to be paid for a minimum amount of time. They will be paid the full amount even if they do not work the full amount of hours specified.
Rest between shifts
This rule will apply when the employee is not given the set amount of hours off work before starting another shift. If ‘Ending in overtime’ is ticked, the rule will only apply if the last shift had overtime applying.
Outcomes are what happens when the conditions of the rule apply to the timesheet.
(a) What rate is it paid at?
Here you specify how much the rule should be paid at by selecting either multiplier or a specific cost for this option. The method selected will depend upon how you have set up your payroll items/pay categories in your accounting system.
Generally it is best practice to have rules set up to multiplier when setting up rules for Full Time, Part Time and Casual classifications. This makes it easier to maintain and update the rules when rates of pay change.
The award rule will be paid as a multiple of the employee’s base hourly rate. You can set the base rate on the employee’s Payroll page in Tanda.
Use this option if there is a set rate of that will only apply to the conditions you set in the award rule. This will override any base rate you have set to the person.
(b) Link to your payroll system
In this section you can select the name of the payroll category/pay item that the award rule should link to in your payroll system.
Custom Payroll Setup means that the rules will not apply to staff under one of Tanda’s managed award template. If you are using one of Tanda’s managed award templates, this will apply in addition to the award rules under the award template. If you are having trouble getting the rule to apply to the employee’s timesheet, please contact Tanda Support for assistance.
If you do not wish this award to be sent to your accounting system you can select the option 'Do not export this to payroll'.
When you are finished, click Create Rule.