Day-off offset: how offset requests work
An offset converts extra hours worked into time off. The employee files an offset request for the date worked, it is approved, and the approved hours become a balance that expires after a set number of days.
What an offset is
An offset lets an employee take time off for extra hours worked, instead of being paid overtime for them. The company decides whether to allow it.
How it works
- The employee works extra hours on a date.
- The employee files an offset request with the worked date, the number of hours and a reason.
- The request is approved, either automatically or by an approver.
- The approved hours add to the employee's offset balance.
- The employee uses the balance for time off before it expires.
The offset policy
HR sets these rules for the company:
| Setting | What it does | Default |
|---|---|---|
| Expiry days | How long approved hours stay valid, counted from the worked date | 30 days |
| Maximum hours per request | The limit set for a single request | 8 hours |
| Approval threshold | Requests at or below this many hours are approved automatically | None |
| Require approved overtime first | The worked date must have an approved overtime request | On |
Approval
A request above the auto-approve threshold follows the company's approval workflow for offset requests. If no workflow is set up, the request is approved straight away. Approved requests send the employee an email. A rejected request does not add hours to the balance.
Balance and expiry
The balance is the sum of approved hours that have not been used or expired. HR can see the balance for each employee and the date the earliest hours expire. When the expiry date passes, the unused hours are marked Expired and no longer count.
Offset and overtime pay
Hours taken as offset should not also be paid as overtime. If your company requires an approved overtime request before an offset, keep the two records consistent, so the same hours are not paid twice. See File and approve overtime.
Questions people ask
What is an offset?
Time off taken in place of overtime pay. Hours worked beyond the schedule are banked and used later as hours off.
Does an offset need an approved overtime request?
By default, yes. The offset policy has a setting that is on by default: filing is blocked until an approved overtime request exists for the worked date. HR can turn it off.
How long does an offset balance last?
The policy sets the number of days from the worked date. The default is 30 days. Unused approved hours then expire.
Can small offsets be approved automatically?
Yes. The policy has a threshold. Requests at or below it are approved automatically; larger ones go through the approval workflow.