The subject of overtime is covered in the Basic Conditions of Employment Act. In setting out the rules, the law seeks to find a balance between the rights of employees and the needs of businesses. These rules must be followed by all employers. In this blog post, we will discuss some of the fundamentals regarding overtime.
Who must be paid overtime?
- Currently, all employees who earn less than R 205,433.30 per year are entitled to be remunerated for any overtime that they work.
- Also, any employee whose employment contract agrees to pay them overtime is entitled to that pay.
Who is excluded from being paid overtime?
- Any person who is earning more than R 205,433.30 a year is excluded.
- Senior managers.
- Sales representatives who travel to customers’ premises and who regulate their own hours of work.
- Employees who work less than 24 hours a month for their employer.
- (Unless there has been a contractual agreement to pay overtime)
How should employees be compensated for overtime?
- Employers must pay their employees at 1.5 times the usual hourly rate of pay.
- Alternatively, an employee may agree to receive paid time off or a combination of pay and time off.
- Working on a public holiday is by agreement from the employee only. Work done on public holidays must be remunerated at double the usual hourly rate of pay. A public holiday can be exchanged with another day off by agreement.
- It is a good idea for employers to spell out the specific terms for compensation for overtime into the contract of employment.
How many hours of overtime are allowed?
- No more than 3 hours of overtime a day.
- No more than 10 hours per week.
If you require any assistance in any matter regarding overtime, please do not hesitate to contact us at [email protected].