Settlement Period
The period over which flextime hours are tallied and balanced (up to 3 months).
One month is the most common settlement period, but up to 3 months is allowed.
· Worked more than required → excess hours are paid as overtime
· Worked less → shortfall carries over to the next period or is deducted from pay
With a 3-month settlement period, if the monthly average overtime exceeds 50 hours, the Article 36 special provision applies.
Example
1-month settlement, 160 hrs required → 180 hrs worked = 20 hrs overtime
settlement periodflextimetotal hourscarry over
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