How to reduce an employee's banked hours balance.

The time bank balance reduction feature is essential for maintaining control and organization of an employee's total hours balance. It allows you to reset the accumulated balance up to a specific date and start a new time bank cycle, with a timeframe stipulated by the time bank rules. This process must be performed whenever the time bank validity period expires or when the balance is paid to the employee.

In this article, you will learn how to reduce your bank of hours balance in a practical and efficient way!

Step by step:

1. Access the module

In the top menu of the Management website, click on Management and then select Time Bank .

2. Fill in the search filters.

Filter by employee , select the employee, and click Search .

3. Open the "bank of hours" section.

Click the Manage , which will appear next to the collaborator's name in the list below the filters.

4. Fill in the fields.

• Date of termination : Enter the date on which the termination will be carried out. All time bank balances prior to this date will be reset to zero in the system. From this date onwards, a new time bank cycle will begin, and the zero balance will only appear in the termination history.

As long as the banked hours are not expired, it is possible to record the withdrawal at any time. If you wish to withdraw the hours on the last day of the banked hours accounting period, but do not know the expiration date, please refer to this article to learn how to check the expiration of an employee's banked hours.

• Payment date : This date indicates the day the balance will be paid on the employee's payroll, appearing in the time sheets as "Payroll Settlement". We recommend that this date be the same as the settlement date to avoid possible confusion when interpreting the records.

If you choose different dates, it is essential to pay close attention to ensure clarity in the interpretation of the history. This is because the end of the previous cycle and the beginning of the new cycle are defined by the termination date, while the termination payment date only serves as an indication of this event on the employee's payroll.

Consider (including) the date of the termination in the calculation of the time bank termination : Activate this option if you want to include the time bank balance from the termination date in the calculation. With this, the new time bank cycle will start on the day after the date specified for the termination.

If this option is not enabled, the previous cycle will close on the day before the low, and the new cycle will begin on the day of the low.

5. Add the low

Finish by clicking on add download.

How to cancel expired banked hours

When an employee accumulates hours that are not compensated within the timeframe defined by the time bank rule, this balance is no longer considered in the time bank . Instead, it is directly reflected on the timesheet as hours to be paid or deducted.

In these cases, the system displays the time bank with a zero balance and in red, indicating that the period has expired and requires attention.

How to register a cancellation:

It is necessary to record the withdrawal on the last day that the time bank was still valid and accumulating a balance. To do this, follow the step-by-step instructions above and, in the date field, enter the last day of the period that the time bank was in effect .

To easily identify this date, access the employee's timesheet and look for the last day the bank account appears in green — this indicates that it was still within the deadline.

Do you want to adjust the start date of a new cycle?

If you want to restart the time bank cycle on a different date, simply:

1. Perform a second check on the desired date for the new start;
2. Next, reissue the balance that accumulated between the two write-offs, linking it to the new cycle.

In this way, the system will consider the new balance from the indicated date, respecting the new compensation period defined by the company.

Automatic reduction of banked hours.

Automatic time bank reduction is a feature that allows the system to perform scheduled balance deductions without the need for manual intervention. In other words, the system itself creates scheduled events that are responsible for applying the reductions directly to the employee's payslip.

How to enable:

• Access: admin > time bank rules
• Edit an existing rule or create a new one.
• In "other settings", enable the option "automatically process bank payments upon due date".

How it works:

• By enabling the option "automatically process bank due dates ," the system generates scheduled events for employees with due dates after the date the time bank rule was modified. Creating retroactive schedules is not allowed.
• The scheduled event date is set for the employee's banked hours expire
• The automatic adjustment is applied to the payroll one day before the employee's due date .
• If the payment is manually processed before the due date, the automatic payment will remain active and will be processed again on the new due date .
• For mobile banking cases, if the employee does not yet have a first event registered, there may be no appointments available.
• If the feature is disabled, all previously created appointments will be removed .

• The feature does not apply retroactive adjustments . This means that if the setting is activated in April, for example, automatic adjustments will only occur from that date onwards.
• The system operates on the principle that the time bank is up-to-date, with no outstanding balances, for the automation to function correctly.

Recalculation report

Whenever a time bank rule is saved, the system automatically generates a recalculation report . This report has two tabs:

• Affected employees : displays the code and name of all employees impacted by the rule change.
• Scheduling of payments : displays detailed information about the dates involved, including the automatic payment date, due date, and scheduling date.

Reading the bank of hours reduction

After recording a time reduction in the time bank, it's crucial to know how to interpret the recorded information. This ensures clarity and facilitates tracking balances throughout the cycles.

The balance zeroed out by the system will be recorded in the Time Bank's Deduction History , specifically in the Compensated . This column shows the amount that was "deducted," that is, removed from the employee's total balance.

How to interpret the value of the write-off:

• Positive balance before write-off: If the employee has accumulated positive hours before the write-off, the write-off value will appear in the "compensated" field as a negative number . This format indicates that the system has zeroed out the positive balance.
• Negative balance before write-off: If the employee had a negative balance (compensated hours exceeding accumulated hours), the write-off value will appear in the "compensated" field as a positive number . This format indicates that the system has zeroed out the negative balance.

Therefore, it is important to note that the amount of the withdrawal will always have a sign opposite to the amount the employee actually had in the bank before the withdrawal.

By understanding how to perform and interpret time entries in the system, you ensure clear and efficient monitoring of employees' time bank cycles, avoiding inconsistencies and facilitating the reading of the history.

If you need further support, contact our team via WhatsApp . We're ready to help!

Updated on: September 29, 2025