One of the most powerful features in Tanda is the award engine, which gives you the ability to create award rules which specify the conditions which your staff are paid according to.
This guide will outline just some of the many ways you can create rules in Tanda to pay your staff:
- Best Practice for Creating Rules
- Ordinary Hours
- Overtime Rules
- Minimum Engagement
- Overtime for hours outside of Roster
- Setting up rules to apply to specific public holidays
Best Practice for Creating Rules:
One of the most powerful features in Tanda is the award engine, where you can program in the conditions which staff are paid according to. Built for flexibility, there are a range of ways you can create your rules. But for a strong foundation, we recommend:
Breakdown your rules by day
Typically rates of pay will differ depending on day and will need to be broken down into a few rules. However, even if you have the same rates across the board, we recommend to split rules to apply:
- Monday to Friday
- Public Holiday
Each rule should be designed to handle one scenario. If the same rate of pay can apply to a few different scenarios, break these down into multiple rules.
For example, let's say Overtime x1.5 kicks in when an employee work past 7pm, or if they work more than 8 hours in a day, or if they work more than 38 hours in a week. We'll want to create a rule for each scenario.
Use Numbers to organise your rules
When creating specific rules that are broken down by day, you'll start accumulate a few rules. In order to make it easier organising your rules, we recommend using numbers at the beginning of the rule's name. If looking at rules from a template or custom build created by Tanda, you'll notice we use a numbering system (i.e 1.1.1 Weekday Ordinary), which your welcome to use too. How our numbering works is:
- The first number refers to a set of Staff. Typically 1 is used for Full Time, 2 is Part Time, 3 is Casual, and so forth.
- The second number refers to day/s. 1 is for Weekdays, 2 is for Saturday, 3 is for Sunday, and 4 is for Public Holidays.
- The third number refers to how specific the rule is. 1 will typically be your base rule (i.e ordinary hours). As the larger the number, the more specific the rule. For example, 2 may be Ordinary hours after 7pm, which is more specific than 1 as it can only apply after 7pm.
When creating rules, you'll see there is the option to use multipliers or rates. We recommend to use multipliers where possible. This is because multipliers tend to remain consistent across employee classifications and over time, whereas rates change more frequently (ie EOFY, birthdays, promotions). Multipliers typically won't require as much updating, and from a payroll perspective would mean less pay items would be required.
Test on a Staging Account
If you'd like to play around with rules without affecting your live account, you can do this at https://staging.tanda.co/. Simply login with your usual credentials, and then you'll see a copy of your account with information as accurate as yesterday. When you're happy with your rules, you can then create these rules in your live account. Please note: changes made in Staging will not push through to the live account, and Staging will reset daily at 5am.
Creating and Updating rules via CSV
If you need to bulk manage rules, doing this via csv may be the easier and more efficient option.
Generally speaking, hours fall into two categories: ordinary or overtime.
Ordinary hours are an employee's normal and regular hours or work, which do not attract overtime rates. Work performed outside the ordinary hours is considered Overtime.
Awards, enterprise agreements and other registered agreements usually set out any:
- maximum ordinary hours in a day, week, fortnight or month.
- minimum ordinary hours in a day.
- times of the day ordinary hours can be worked (eg. between 7am - 7pm).
When entering this information into Tanda as custom rules, best practice is to create generic rules for Ordinary hours that do not specify any times or hours, leaving that information to be configured in Overtime rules.
In the pictured example above, a set of rules have been created or Full Time employees. Apart from breaking down the rules by day and to apply 'Full Time' employees as per best practice, the only information on this rules is that is considered ordinary hours.
By building generic rules for our ordinary hours, we've created a foundation we can then build our overtime rules on top of.
In most employee contracts, there will be overtime that applies after a certain amount of hours in day/pay period, followed by another level of overtime after Y hours of overtime.
For example, "Hours worked in excess of the 38 hours per week are to be paid at time and a half for the first three hours and double time thereafter".
This means we need at least two rules:
- Overtime after 38 ordinary hours, paid at 1.5x.
- Overtime after 3hours of overtime (1.5x), paid at 2.0x.
Overtime (1.5x) after 38hours
To build the first overtime rule, ensure you have:
- Selected 'Overtime' as your rule type.
- Conditions are set to apply after ordinary hours have elapsed, based on hours worked in a pay period, and hours in the pay period is set to 38.
Overtime (2.0x) after 3 hours of overtime (1.5x)
To create the second rule:
- Select 'Overtime' as your rule type.
- Set conditions to apply after overtime hours have elapsed, based on hours worked in a pay period of 38 hours, and after 3 hours of overtime.
In this specific example, we looked at overtime (1.5) after 38 hours and overtime (2.0) after 3 hours of overtime. However, you can change the conditions to suit your specific arrangement.
- To create a custom allowance, head to Compliance > Customise Your Setup > Allowances > Manage.
2. Click on the green + New allowance button in the top right corner:
3. First, set a Name for the Allowance and link this to your Payroll & Accounting System.
4. Next, select what type of allowance it is - Manual or Automatic:
Manual allowances require detail on who it will apply to and the rate to be paid. This will only apply when you add it to the timesheet. A common example is the travel allowance where the distance travelled (i.e. kilometers) is manually entered on the timesheet.
Automatic allowances apply whenever the conditions specified on the form are met, including factors such as the day, time and type of shift. For example, an employee can receive the laundry allowance for every shift they work.
5. Set whether you want all staff to be eligible for the allowance or whether this will only apply to specific staff with specific tags (ie, Part Time/ Casual, a specific grade of pay, etc).
6. Then, under ‘What rate is it paid at?’, select the either the ‘multiplier’ option or the ‘specific cost’ option.
Both manual and automatic allowances require a rate to be specified, which can either be a specific cost (e.g. dollar amount) or multiplier (calculated with the employee's base hourly rate).
6. When you're finished, just click Create Allowance at the bottom to save.
7. If the allowance was automatic, it should apply to the corresponding time sheet automatically should the required conditions be met. If the allowance was manual, head to the necessary timesheet and select the allowance from the blue ‘+Add’ option next to ‘No Allowances Applying’. Then, select the allowance you’ve just created from the list, enter the required number of units and hit 'Save Allowances'.
A common stipulation in modern awards and enterprise agreements is the minimum number of hours an employee can be asked to work on a day.
Using the example above, the employee either works three hours, or works less than three hours but is paid for the full three hours.
If you're using a Tanda Managed Award Template, this will likely be pre-configured for you. If you need to build this rule into your account, head to Compliance > Custom rules > + New Rule.
Under Conditions, you'll see the option 'Minimum Shift Length'. Tick this condition and specify the minimum hours required.
After creating this rule, eligible staff will receive payment for 3 hours on shifts that are less than 3 hours. For example, the employee below worked 3:30-5:30pm (two hours) and this is reflect on the start and finish times. However, they are paid as if they had worked 3:30pm-6:30pm (three hours).
Some award and agreements allow for an employee and an employer to agree for time off to be taken instead of being paid overtime pay. This is known as 'time in lieu', 'time off in lieu' or 'TOIL'.
When TOIL can apply and how it is calculated will depend on the award or agreement. This guide will go through how to create 'time for time' rules, where the period of time off that an employee is entitled to take is the same as the number of overtime hours worked.
TOIL Accrued - Time for time
When building the rules, enter the conditions that trigger TOIL accrual (e.g. after 38 hours in a week, or after 8 hours in a day). If overriding a template, the conditions will need to either be the same or more specific than the overtime rules currently applying to the staff member.
Tip: If systematic TOIL accrual is not desired, the best approach would be to set the rule to apply to 'Specific Shifts' with an Award tag that represents TOIL Accrued. Staff profiles and shifts on the timesheet would then need to be tagged to be calculated as TOIL Accrued.
The Award tag drop-down is only visible when enabled under Settings > Timesheets > Advanced.
Then, under outcomes, ensure the rate has been entered as '0' and 'Export this time as a TOIL or RDO accrual' has been ticked. This will ensure the hours are considered an accrual and will not be paid. Hours will be paid when TOIL is taken.
A 'TOIL Taken' leave type can be created at https://my.tanda.co/awards/leave. Generally this leave would be considered 'ordinary' hours and cost at a 1.0 pay rate multiplier.
Integrate with Payroll
Overtime for Hours Outside of Roster:
One scenario where an employee may be entitled to overtime is when they work hours outside of their rostered hours.
Using the example picture above, an employee who works beyond their rostered hours is entitled to Overtime at 1.5x for the first three hours and Overtime 2.0x after that. Two rules need to be created under Compliance > Rules to cater for this.
First three hours beyond Roster
Under Conditions, select 'After number of hours worked'. Specify here that the rule will kick in After ordinary hours have elapsed and Rostered hours.
3+ hours beyond Roster
For the second rule, under Conditions select 'After number of hours worked' again. This time, specify After overtime hours have been elapsed, Rostered hours, and enter how many overtime hours need to have passed. For the above example, we'd enter 3.
Then, on timesheets, hours worked will be compared to the roster. Hours outside the rostered hours will be paid according to the rules above.
Setting up rules to apply to specific public holidays:
You can create rules that apply to specific public holidays only. For example, the Restaurant Industry Award 2010 specifies that a 225% penalty rather than 250% penalty should apply when Christmas Day falls on a weekend.
Please note that if you are on a Managed Template in Tanda, double check if this condition has been built in with Tanda's support team.
1. Start to create your award rule using our award rules page
You will need to:
- name your award rule;
- pick who is entitled to the award rule; and
- select if it is ordinary hours or overtime hours.
See this article for guidance on creating award rules.
2. Go to 'specific day(s)' under the conditions section of the award rules page
3. Select the public holiday option
4. Specify the public holiday by starting to type the name of the public holiday
You will need to create it with the exact wording specified in your Tanda accounts pre-built holidays. You can find the exact name to tag the public holiday under General Settings.
- Make sure you are on the 'General' tab page under Settings.
- Select Show Pre-Built Holidays to see a full list of public holidays specified for your Tanda account.
- Start to type the specific public holiday name that you are creating an award rule for and select the green '+ Create' button.
4. Finish creating your award rule
5. Check the award rules summary page
On the award rules summary page, you should see Specific Public Holidays show up under the Applies On column.