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There are two alternatives to overtime pay. Knowing what they are can save you money

by , 10 November 2014
When you hear the word 'overtime', I bet the first though that comes to mind is 'extra costs'.

But what if I told you, you don't always have to pay for overtime?

It's true.

According to Section 10(3) of the Basic Conditions of Employment Act (BCEA), you can give your employee time off in lieu of overtime payment, but only if you have an agreement in place.

Confused?

Keep reading to discover two alternatives to overtime pay you have so you can save money.


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Stop paying your employees overtime!

You don't have to pay your employees money for working overtime...

That means no more having to do overtime calculations or deal with angry employees because of overtime miscalculations.

Read on to discover the four alternatives you can use to compensate your employees instead of spending thousands every month.

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Two alternatives to overtime pay
 

#1: If overtime happens on a normal working day (excluding Sunday), give your employee at least 90 minutes off for each hour of overtime he works.
 
The rule here is, time off must equal what you'd pay for the overtime.
 
For example, your employee works two hours of overtime on a Wednesday. You want to give him time off instead of paying him. You can't simply give him two hours off, you have to give him three hours off (90 minutes for every hour of overtime).
 
#2: Alternatively, you can pay your employee his normal wage and give him 30 minutes off for each hour of overtime he works. This is a combination of paying for overtime and granting time off.
 
For example, your employee works two hours of overtime on a Wednesday. You want to give him a combination of time off and payment instead of full overtime pay. You must pay him his normal wage for the two hours' overtime he works and give him one hour off.
 
There you have it: You don't always have to pay for overtime. Use these two alternatives if you have an agreement in place to save your company money.

For two more alternatives to overtime pay, check out Your Essential Guide to Overtime: Everything You Didn't Know About Overtime and More.

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