Calculating CLA allowances automatically: how it works
CLA allowances, such as for evening, night and weekend hours or overtime, can be calculated automatically if your payroll software knows the allowance rules from the collective labour agreement and gets the hours worked from the rota. When something changes, check in advance who is affected. In Nexora, CLA rules are stored with their source, and the payroll run applies the allowances based on the hours from the planning.
Which allowances are in a CLA?
Often an allowance for irregular hours (evening, night, weekend), for overtime, for working on public holidays and sometimes for shift work. The percentages and time periods differ per CLA.
Which CLA applies to you?
A CLA applies if you are a member of the employers' organisation that concluded it, or if it has been declared generally binding for your sector. Which one that is depends on your company's main activity.
What do you need to calculate automatically?
- the allowance rules as rules, not as a PDF: which hour, which percentage, for whom;
- the hours worked per shift, with start and end times;
- each employee's pay scale and contract;
- versions: which rule applied on which date.
What if the CLA changes?
Then you want to see in advance which employees, contracts and rotas are affected and what it costs. What is unambiguous, you apply. Exceptions you check.
How it works in Nexora
Every day Nexora fetches the list of collective labour agreements declared generally binding. Nora reads the CLA and turns it into rules, and a person approves each rule before it becomes active. Every rule can be traced back to document, version and page. The payroll run applies the allowances using the hours from the planning, and a trial payroll shows you in advance what changes.
Read more: CLA & Compliance · Payroll
Frequently asked questions
What happens if I pay too little in allowances?
If you deviate from an applicable CLA to the employee's disadvantage, the employee can claim back pay.
Do I have to enter the CLA myself?
No. Every day Nexora fetches the collective labour agreements declared generally binding; a CLA that isn't, you upload yourself as a document. Nora turns the text of your CLA into rules. A person approves each rule before it becomes active.
Can I also record our own agreements?
Yes. Alongside the CLA you record your own company rules, such as your contract policy. If a contract or rota deviates from them, you get a signal.
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