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What you need to know about a dismissed employee's entitlement to overtime

by , 24 July 2015
Let's say you have an employee called Anna. She was earning R12 000 plus R1000 fuel allowance per month.

Anna worked a lot of overtime to meet production deadlines. But now, Anna's been dismissed. The reason for dismissal was theft.

You still need to pay Anna out. But is she still entitled to her overtime pay?

Here's what you need to ask to that answer out for yourself...

'Does the employee qualify for overtime pay?'

Does Anna inside the provisions the BCEA makes for overtime? Work it out.
The current threshold is R205 433.30 per annum. This excludes fuel allowance. So if Anna earns R12 000 per month, she earns R144 000 per year. Therefore, she falls outside the provisions.
But this doesn't necessarily mean she's not entitled to overtime pay. You'll also need to ask yourself this…

'Was there an agreement for the employment to work overtime and be paid for it?'

Check if there's a clause in Anna's contract regarding overtime. Is there anything about workingovertime for extra pay? Take a careful look.
******** Here's something else on overtime to look at **********
Just because your employees work overtime doesn't mean you have to pay them for it...
Yes you read right, you really don't have to pay your employees overtime...
In fact, today you can discover how to get rid of all your overtime headaches without having to fork out thousands of rands every month for overtime
Click here to find out more.
If there was an agreement like this in place, Anna's 100% entitled to her overtime pay. If there isn't, then she's not.

The bottom line: If there was an overtime agreement and the employee worked overtime, you need to pay her out!

Even though you've dismissed Anna, she's entitled to all her overtime pay if there was an agreement in place.
So when you pay her out, you need to include all her overtime that's due.

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