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Three alternatives to paying your employees overtime

by , 03 May 2016
Overtime. The word alone is enough to disrupt any employer's peace of mind. And understandably so! It can be very expensive for you, with your employees often coming out on top.

But did you know that you don't necessarily have to pay an employee overtime?

That's right! There are three alternatives you can use to help you manage overtime more effectively in the workplace!

Keep reading to find out what they are...

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You don't have to pay your employees overtime...

Discover the four alternatives you have that can save you thousands on your staff's salaries this month...

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Alternative#1:
 
You can give your employee time off instead of paying her for overtime worked.
 
But remember that the time off you give your employee must be equal to the pay you would have given her for the overtime worked. In other words, this means you must give her 90 minutes off for every hour of overtime she works.

NOTE: This excludes Sundays.

Alternative#2:

You can pay your employee her normal wages and give her 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.

Alternative#3:

If your employee works on a Sunday, you can grant her 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 her for the overtime worked.
 
REMEMBER: An employee who agrees to time off instead of payment for overtime worked is entitled to receive that time off within one month of her having worked the overtime. But this can, through written agreement, be extended to a period of 12 months.
 
NOTE: According to Section 10(3) of the Basic Conditions of Employment Act (BCEA), you can only use these alternatives if there's an agreement in place. This could be in the form of a clause in your employee's signed contract, stating they can get time off instead of payment for overtime.
 
 
*To learn much more on managing overtime in the workplace, page over to Chapter O 02 in your Labour Law for Managers handbook.
 
If you don't already have it, simply click here to order a copy of this brilliant labour resource today.
 
 
 


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