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Four instances when you don't have to pay overtime!

by , 04 April 2013
- The First Performance Review Software Available in South Africa

- Four instances when you don't have to pay overtime!

- All the labour, HR and Health and safety forms you need... Ready to use in 4 simple steps

- Your employee can exchange a public holiday for any other day

Dear Reader

There are times when you might need employees to work overtime to get a job done. But did you know you don't have to pay alemployees overtime? And do you know how to compensate employees who you do have to pay overtime to?

Keep reading to find about four facts you have to know about when paying for overtime...

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Four facts you must know about overtime and work on Sundays and public holidays

1.    Four instances when you don't have to pay overtime!

Even if they're required to work overtime, the Basic Conditions of Employment Act says you don't have to pay overtime to the following employees:
•    Employees who earn more than R183 008 a year;
•    Senior managerial employees;
•    Sales staff who travel to customers' premises and who regulate their own hours of work; and
•    Employees who work less than 24 hours a month for you.

2.    Anything over 45 hours a week is overtime

Unless you have a specific agreement with your employee saying you might need him to work overtime, you can't get him to work more than 45 normal hours per week. But if he works more than 45 hours a week, he's working overtime.

You also can't let an employee work more than 12 hours a day, and more than 10 hours of overtime in total in any week. (Unless you reach a collective agreement to increase the overtime hours to a maximum of 15 hours in a week, in accordance with S 10(6) of the Basic Conditions of Employment Act).

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Have you experienced one of these situations:

-    You've disciplined your employee and have to give him a written warning;
-    The health and safety inspector is due for a visit;
-    You need to prove you're compliant with the law;
-    You've got a temporary employee starting tomorrow; and
-    You need an employment contract.

The documents for just these three issues will take you hours to compile. I know all the administration around employees takes up so much of your valuable time. You've really got more important things to do than draw up a warning letter or simple contract from scratch. You need it done for you. And we've done just that.

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3.    You must pay double for work done on Sundays and public holidays

You must pay your workers double their normal rate for work on public holidays and Sundays. This doesn't apply if public holiday or Sunday work is part of the employee's normal working hours. In this case, you must pay your employee time-and-a-half if he works a Sunday or public holiday.

4.    Your employee can exchange a public holiday for any other day

Your employee can exchange any public holiday for any other day if you've both agreed to this on an ad hoc basis.
For example, if he rather wants a day off over his child's school holiday, but doesn't want to take annual or unpaid leave, he can do so. He can also exchange a public holiday for a religious holy day of his own faith, e.g. Rosh Hashanah.

For more facts and procedures on paying overtime, refer to O02: Overtime of the Labour Law for Managers.
Still not a subscriber? Click here.

Until next time,


Taryn Strugnell

P.S. No more wading through countless information sources to keep up-to-date: Labour Watch will do it all for you. In only 15 minutes a month, you'll be 100% informed on the latest developments in the world of labour law and human resources. Click here...



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