3 overtime implications if your employee earns over the earnings threshold
Do you have employees who earn over the earnings threshold?
If so, then it's worth noting that they're not entitled to certain payments and benefits as opposed to employees who earn below this threshold?
This is especially true when it comes to overtime pay...
The current earnings threshold, as stipulated from the 1st of July 2014, stands at R205 433.30.
Having said that, know these 3 overtime implications for employees who earn above the earnings threshold, and avoid giving them what they actually shouldn't be getting...
Implication#1: Ordinary hours of work
You don't have to pay your employees overtime
the four alternatives you have that can save you thousands on your staff's salaries this month…
You, as the employer, are entitled to ask employees who earn above the earnings threshold to to work longer than the standard working hours WITHOUT remuneration.
The maximum normal working time is 45 hours per week. This means 9 hours per day (excluding lunch breaks), if she works 5 days per week, or 8 hours per day (excluding lunch breaks), if she works more than 5 days per week.
But this doesn't necessarily mean that an employee must work 45 hours per week normal.
You and the employee must agree on the normal working hours.
You DON'T have to pay employees who earn over the earnings threshold overtime
an hourly rate of 1.5 their usual rate.
This ONLY applies to employees who earn below the threshold.
If an employee has worked over his personal time, you should compensate him in a fair manner. For example, you could give him a bonus, time off etc.
Implciation#3: Compressed working week
Employees who earn above the earnings threshold CAN work compressed working weeks WITHOUT receiving overtime
pay or time.
For example, you can ask employees to work a compressed working week in case of emergencies.
*Those were 3 overtime
implications for employees who earn above the earnings threshold.
But did you know that there are 6 other implications?
Simply page over to chapter E 23
in your Practical Guide too Human Resources Management
handbook to see what they are.
If you don't already have this fantastic resource, then simply click here.
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