Overtime is compensated according to national law or agreed legal rates

What does this mean?

  • Payment of overtime is laid out in SD 14, i.e. it must be at least one and a third times the employee’s wage for the first 10 hours of overtime and one and a half times the employee’s wage for any overtime in excess of ten hours worked in a week.  Alternatively a business may grant an employee at least 90 minutes’ time off for each hour of overtime worked.
  • There are however allowances around this and they should be looked at if applicable for your business.
  • It is important to remember that payment of overtime should occur at the same time as the payment of the employees’ normal wage, and not at a later date.  As such overtime must be reflected on an employees’ payslip.
  • It is very important to ensure that the payment of overtime for temporary workers is transparent and is not allocated as normal hours worked if the employee did not make up their normal wage allocation for that week or month.