Overtime Policy

Definition of Overtime

• Standard Working Hours: Standard working hours are defined in the employment contract and typically follow local labor laws. Any work performed beyond these standard hours qualifies as overtime.
• Overtime Classification: Overtime may be classified as regular or exceptional. Regular overtime is scheduled in advance to meet ongoing operational needs, while exceptional overtime occurs in response to unexpected emergencies or workload spikes.
  
  

Eligibility and Compensation

• Non-Exempt Employees: These employees are entitled to overtime pay according to the legal requirements, usually at a rate of one and a half times their regular hourly wage. This applies regardless of where the work is performed, as long as it is for company business.
• Exempt Employees: Exempt employees are not legally required to receive overtime pay. However, the company may offer compensatory time off or additional bonuses at management’s discretion. All decisions regarding exempt employees’ overtime compensation must align with company policy and legal guidelines.
• Shift Work: Employees working in a shift-based system are subject to specific rules to ensure their health and safety. Night shift workers and those on extended shifts (12 hours or more) are restricted from working excessive overtime to prevent fatigue-related risks.
  
  

Procedures for Assigning and Recording Overtime

• Approval Process: Overtime must be pre-approved by the department manager. Employees should not work overtime without explicit authorization, except in emergencies where immediate action is required to protect company interests or safety.
• Timekeeping: Accurate recording of overtime hours is mandatory. Employees must use the company’s timekeeping system to log overtime hours. Any discrepancies or errors in time records must be reported to HR immediately.
• Compensation and Payment: Overtime compensation will be included in the employee’s next regular paycheck, provided the overtime was recorded correctly and approved. The payroll department is responsible for calculating overtime pay in accordance with legal and contractual obligations.
  
  

Managing Excessive Overtime

• Health and Safety: The company recognizes that excessive overtime can lead to health and safety risks, including reduced productivity and increased likelihood of accidents. Therefore, the company has set limits on overtime hours to prevent these risks. Employees should not work more than 2 hours of overtime per day or 8 hours per week unless in extraordinary circumstances.
• Mitigation Strategies: If excessive overtime becomes necessary, the company will take steps to reduce the need for ongoing overtime. This may include hiring additional staff, redistributing workloads, or adjusting project timelines to ensure that employees are not overburdened.
  
  

Abuse of Overtime

• Prevention of Abuse: Both managers and employees are expected to prevent the abuse of the overtime system. Managers should not encourage unnecessary overtime, and employees should not work excessive hours in pursuit of higher pay at the expense of work quality.
• Consequences: Abuse of overtime, whether by excessive demands from management or unnecessary work by employees, will be investigated by HR. Disciplinary action, up to and including termination, may be taken against those found to have violated the overtime policy.