Settlement policies

A settlement policy decides what happens to an employee’s time account at the end of each approval period — how much of the period is banked and at what rate, whether any of it is paid out, and how high the balance is allowed to grow. It runs once per period, after the timesheet is settled.

Settlement is where the different kinds of earned time come together. A policy can bank plain flex, add overtime at a premium, fold in additional hours and other inconvenience allowances earned during the period — each at its own rate — then cap the balance and pay out or carry the rest.

Overview

Most workspaces only need plain flex: the period’s difference between worked and expected hours (the delta) is added to a flex account and carries forward. That happens automatically as soon as an employee has a flex account — no settlement policy required.

You add a settlement policy when the agreement needs more than plain carry-forward — for example:

• bank overtime at a premium rate (×1.5) while banking ordinary additional hours at base rate,
• add an inconvenience or on-call allowance earned in the period to the same account,
• cap the balance and pay out or forfeit the surplus,
• let employees request a payout at submit time.

When a settlement policy targets an account, the policy is the single source of truth for that account — the automatic carry-forward is switched off, so nothing is counted twice.

Getting started

1. Go to Settings › Policies
2. Click Add Policy and choose Settlement
3. Give it a name (for example, Flex with overtime premium)
4. Pick the account the policy settles (the employee’s flex account)
5. Add the input activities the steps will use (see below)
6. Add one or more steps, in order
7. Click Save
8. Open an employment term and attach the policy under Settlement policies

Input activities

Steps that credit the account from earned amounts — the counters such as Additional hours and Overtime, or any allowance activity — refer to those activities by a short alias rather than by name. You declare each alias once on the policy:

Using aliases keeps expressions readable and lets a workspace be exported and re-imported without rewriting every policy by hand.

The settlement pipeline

The policy runs its steps in the order you list them. Crediting steps add to the account first; cap and payout steps then adjust the result. See Settlement steps for the full list and the configuration of each step.

How it relates to the other policies

• The flex account is set on the employment term and is the account the policy settles.
• The allowance counters produce the period totals (additional hours, overtime, …) that a Credit (expression) step combines.
• The work time policy still tracks the daily flex difference; settlement only decides what is banked at period end.

Troubleshooting