What is overtime?
To understand how workforce management systems can aid in the correct payment of overtime, we must first define what overtime and overtime pay are.
In simple words, overtime refers to the number of hours worked by an employee in excess of their regular scheduled work hours. Overtime also refers to the remuneration of an employee for extra hours worked. Overtime rates often vary between companies, as do the number of overtime hours worked, but standard overtime rates include one-and-a-half and double the time for typical overtime terms.
in South Africa, overtime rules The Basic Conditions of Employment Act (BCEA) is set out. Under the Act, employees can work a maximum of 45 hours a week (excluding lunch hours) at their standard rate of pay, which is 9 hours per day for a 5-day work week and days off for a work week. In 8 hours is more than five. day. Overtime only applies if an employee works more than 45 hours per week.
Overtime is enforced under the following conditions:
- Employees can work a maximum of 3 hours of overtime per day or 10 hours in a week.
- Overtime rates are paid at 1.5 times the normal rate and 2 times the normal rate for Sundays and public holidays.
- Overtime pay is subject to annual income limits R224 080.48,
- All overtime is voluntary and can only be worked under an agreement between the employer and the employee. Employers cannot force their employees to work overtime.
- Senior management employees do not receive overtime pay, nor do employees who work less than 24 hours a month for their employer or employees who regulate their hours (eg traveling salespeople).