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Two ways to compensate your employees' overtime without paying them a cent!

by , 30 April 2013
Ironically, while tomorrow's public holiday is called Workers' Day, many employees still show up to work on this day. And while some companies are doing all they can to cut the amount of overtime employees work, others are happy for employees to be in the office at all hours to get through their workload and ensure production targets are met. Luckily, there are two ways to 'pay' your employees for their overtime that won't affect you're company's coffers!

 
Weaver city in Alabama is looking to cut its employees' overtime until the fiscal year ends to save Weaver an estimated $50,000, says The AnnistonStar
 
That shows how expensive it can be to have your employees working overtime.
 
If you're looking to cut costs in a similar way, you have a few options, says the Labour Law for Managers Loose Leaf.
 
Overtime trade-off option 1: Work a public holiday in exchange for another day off
 
For example, your employee can choose to work on a public holiday – like Workers' Day tomorrow – and exchange the public holiday for any other day if you've both agreed to this on an ad hoc basis.
 
This means your employee can work on a public holiday in exchange for an extra day off over his child's school holiday if he doesn't have enough annual leave accumulated to do so and he doesn't want to take a day's unpaid leave.
 
The best part? 
 
Your employee can do this to work on a religion-based public holiday like Good Friday, to exchange the public holiday for a religious holy day of his own faith that's not recognised as a public holiday, such as Rosh Hashanah if he's Jewish, says Taryn Strugnell on FSP Business
 
Overtime trade-off option 2: Work overtime for time off in lieu of payment
 
You can also give your employee time off in lieu of payment for overtime if you have an agreement in place, according to the Basic Conditions of Employment Act.
 
Just remember that if you go with this option, you need to give the employee the time off within a month of his working overtime
 
If you simply can't afford to do so due to company deadlines, you can agree in writing to extend this to 12 months, confirms the Labour Law for Managers Loose Leaf.
 
There you have it. Two great overtime trade-offs that'll keep your employees happy without affecting your business bottom line!
 


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