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How to Configure Minimum Engagement Rules

Guide to setting up guaranteed minimum paid hours per shift for payroll compliance

What This Feature Does

Minimum Engagement Rules guarantee that workers are paid for a minimum number of hours per shift, even if the actual shift is shorter. This is a common requirement in Australian awards and enterprise agreements. For example, if a casual worker is called in for 2 hours but the award requires a minimum 4-hour engagement, the worker is paid for 4 hours.

Minimum engagement rules are configured within Rule Groups inside a pay rate document.

Key Concepts

Minimum Hours

The guaranteed minimum number of hours a worker must be paid for when they attend a shift. If actual hours are less than the minimum, "offset hours" are added to make up the difference.

Offset Hours

The difference between the minimum engagement hours and actual hours worked. These offset hours are paid at a configurable rate (normal or overtime).

Example: Minimum engagement = 4 hours, actual shift = 2.5 hours

  • Offset hours = 4 - 2.5 = 1.5 hours
  • Worker is paid for 2.5 hours of actual work + 1.5 hours of offset

You can configure whether offset hours are paid at:

  • Normal rate: Standard base rate
  • Overtime rate: OT1 or OT2 rate

Application Scope

Rules can be scoped to apply to:

  • All shifts: Applies regardless of when the shift occurs
  • Weekday only: Only applies Monday through Friday
  • Weekend only: Only applies Saturday and Sunday

How to Create a Minimum Engagement Rule

  1. Open a pay rate document from the Pay Rate Documents tab
  2. Navigate to the Rule Groups section
  3. In the minimum engagement rules area, click "Add Minimum Engagement Rule"
  4. Fill in the form fields described below
  5. Click "Save" to create the rule Basic Information:
  • Rule Name: Descriptive name (e.g., "4-Hour Minimum for Casuals", "Weekend Minimum Engagement")
  • Minimum Hours: The guaranteed minimum hours (e.g., 4)
  • Offset Description: Label for the make-up hours pay item when workers work less than the minimum (e.g., "Minimum engagement")

Rate Configuration:

  • Paid At Rate: The rate at which minimum engagement hours are paid — Normal Rate or Overtime Rate
  • Applies To: Which shifts this minimum engagement applies to — All Shifts, Weekday Only, or Weekend Only

Employment Types:

  • Optionally restrict the rule to specific employment types (Full Time, Part Time, Casual). If none are selected, the rule applies to all employment types.

Cost Code:

  • Cost Code: Select the cost code for the offset hours pay line item

How the Calculation Works

When "Apply Pay Rates" processes a timesheet:

  1. The system checks if a minimum engagement rule applies to this timesheet
  2. If the worker's actual hours are less than the minimum:
    • Offset hours = minimum hours - actual hours
    • A separate pay line item is created for the offset hours
    • The offset is paid at the configured rate and linked to the specified cost code
  3. If actual hours meet or exceed the minimum, the rule has no effect

Example Calculation

  • Rule: 4-hour minimum engagement at normal rate
  • Timesheet: Worker clocked 2 hours at $40/hour base rate
  • Result:
    • 2 hours actual work: $80 (paid normally)
    • 2 hours offset: $80 (paid at normal rate)
    • Total: $160 (equivalent to 4 hours)

Tips

  • Check your award: Most awards specify minimum engagement hours by employment type (casual workers often have higher minimums)
  • Scope appropriately: Weekday and weekend minimums may differ under your award
  • Use employment type filters: Permanent workers often have different minimum engagement requirements than casual workers
  • Link to a dedicated cost code: Tracking offset hours separately helps identify the true cost of short shifts
  • Review after applying: Check the Summary View to see which timesheets had offset hours added

What's Next