Overtime Policies
Policy Objective:
This Overtime Policy is here to make it clear how we handle extra work hours at our company, so everyone knows the rules and we can all be fair and consistent about it.
Clause 1: Overtime Approval
1.1 Overtime hours will only be considered valid if they are pre-approved by the employee's line manager. The line manager is responsible for evaluating and confirming the necessity of the overtime work before it is undertaken.
Clause 2: Eligibility for Overtime
2.1 Employee only gets overtime if the monthly timesheet hours exceeds the total working hour for that month.
For example:
Total Number of Days in a Month 30
Total Saturdays in that month 4
Total Public Holidays in that month 1
Total Sick Leave taken by the employee 1
Total Casual Leave taken by employee 1
Total Working Days in that month 23
Total Working Hours (8 hours a day) 184
Case I: Eligibility for Overtime
Compensation
An employee who has worked 185 timesheet hours (incl. lunch and buffer hours) for that month will have their overtime hours counted as 1 hour
Case II: Ineligibility for Overtime Compensation
An employee who has worked day and night but doesn’t have a total of 184 hours in their timesheet due to some unapproved leaves, he/she will not be eligible for any overtime hours.
Clause 3: Overtime Compensation
Employees eligible for the number of overtime hours as per Clause 2 will get the benefit as per their Employee Grade.
Case I: Employees below Grade 3
For Employees below Grade 3, the overtime will be paid as per the following:
Normal Day = (Hourly Rate) *(Overtime Hours) *1
Weekends = (Hourly Rate) *(Overtime Hours) *2
Whereas Hourly Rate = ((Gross Salary for the month)/30)/8)
30 = Total Number of Days in a Month
8 = Total Working Hours in a Day
Case II: Employees with Grades 3 and above
For Employees with Grade 3 and above, substitute leave will be allocated equaling to the total approved overtime hours.