This section will have the system automatically apply a penalty for employees who are not given required meal breaks.
•Meal break threshold (in hours) - This is number of hours after starting work at which the employee is entitled to an unpaid meal break.
•Standard meal break duration (in minutes) - So that overtime may be properly calculated if your overtime settings are per day or per shift, you need to enter the length of scheduled meal breaks (in minutes).
•Penalty threshold (in hours) – This is the number of hours after stating work that the employee will start to be paid a penalty if they have not taken the unpaid meal break.
•Ordinary hourly rate penalty factor - This percentage value defines how much a base rate is increased by when a meal break penalty is applied. For example if an Ordinary hourly rate penalty factor of 50% is applied to a base rate of $16 per hour, the rate of pay would become $24. That is: base rate + (base rate x Ordinary hourly rate penalty factor) = 16 + (16 x 0.5)
Here are some examples where the:
•Meal Break Threshold = 4 hours;
•Standard Meal Break Duration = 30 mins;
•Penalty Threshold = 6 hours.
If an employee works from 12:00 to 19:00 without a break (a total of 7 hours), the Meal Break Threshold has been exceeded and there has been no meal break taken. The total hours worked has exceeded the Penalty Threshold by 1 hour, therefore the employee will be paid the penalty factor for 1 hour.
If an employee works from 12:00 to 17:00, and then 17:30 to 19:30 (a total of 7 hours), the Meal Break Threshold has been exceeded but there is a 30 minute break taken. No penalty will apply.
Please note: If a break is taken but the duration is less than the number of minutes entered in the Standard Meal Break duration the system will deem that the meal break has not been taken.
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