Four things you should know about giving time off for overtime instead of payment
You don't necessarily have to pay an employee for overtime. An alternative option is to give him time off in place of payment. But this can only happen if there is an agreement in place (as required in section 10(3) of the Basic Conditions of Employment Act). This can include a clause in your employee's signed contract that states they can get time off instead of payment for overtime.
Upon agreement to these terms, here are four things that you should know about time off in place of payment for overtime worked...
The time off that you give to your employee must equal the pay you would have given him for the overtime
So, this means that you must give him 90 minutes off for every hour of overtime
worked. That excludes Sundays…
You could also pay your employee his normal wages and give him 30 minutes time off for every hour of overtime
worked. This adds up to a balanced combination of both paying for overtime
and granting time off for it.
You don't have to pay your employees overtime
If your employee works on a Sunday, you must give him 60 minutes time off for every hour worked. But you can also combine pay and time off as long as it all equals what you would have paid in full for the overtime
An employee who agrees to time off instead of payment for overtime
worked is entitled to receive that time off within one month of him having worked the overtime
. But this can, through written agreement, be extended to a period of 12 months.
So, there you have it – four things you should know about granting time off to your employees in place of payment for overtime
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