Overtime Policy

Companies recognise that employees may be requested to work overtime in order to complete projects, meet job commitments or manage resource shortfall. The overtime policy clearly outlines when, how and what constitutes overtime and explains the company's compensation procedure. This policy template is available for download in Word format.

With this Overtime Policy template, you can:

• Define the guidelines that oversee overtime hours
• Outline the overtime eligibility and authorisation process
• Explain the disciplinary action protocols

In just a few minutes, you will be able to set up a policy that covers most of the necessary information required. This policy covers rules to be followed with respect to:

• Overtime requests
• Process for approval mechanism
• Recording of overtime hours
• Computation of overtime hours and payments thereof and lots more…

Overtime Policy

Objective

< Company Name Here > recognises that employees may be requested to work overtime in order to complete projects, meet job commitments, and/or make up for an employee shortfall. In response, < Company Name Here > created this overtime policy to clearly outline when employees are eligible for overtime and to explain the company's compensation procedure.

The purpose of this policy is to:

• Define the guidelines that oversee mandatory overtime,
• Outline the overtime eligibility and authorisation process, and
• Explain the disciplinary action protocols.

Scope and Applicability

Applicable to all employees.

This policy is owned by < Name of the Person > and reachable @ < Contact Number > and < email address >

Policy/Process

Mandatory Overtime

< Company Name Here > reserves the right to request any and/or all employees to work overtime during busy periods or in cases of emergency. Overtime is only applicable if an employee works over < 48 hours per week or 9 hours per day >. Thereafter, < Company Name Here > will pay employees < twice the hourly rate > for the additional hours worked.

Employees are only allowed to reject an overtime request if he/she was not notified at least < number of days/weeks > before the expected overtime period or if he/she has a valid reason.

General Guidelines

• Employees will be classified as exempt or non-exempt by < Company Name Here > according to overtime pay rules.
• All non-exempt employees are entitled to overtime. For an employee to qualify for overtime, he/she must first complete the required < number of hours > hours per week. Employees working on a weekly off or holidays with a minimum of 4 work hrs will be eligible for overtime or compensatory off. All working hours, including overtime hours, have to be recorded through the regular timekeeping system or procedure set by < Company Name >

Authorisation

< Managers > are responsible for assessing work deadlines and projects to determine when/if overtime is needed. In cases where overtime is required, the < Managers > must report it to their Senior Manager for authorisation at least < number of hours/days > before the expected overtime date. If the Senior Manager approves the overtime, he/she must fill in an Overtime Report and submit it to the Finance Department for compensation. Depending on the date of submission, overtime will be paid out in the following pay cycle.

Excessive Overtime

In an effort to safeguard our employees' health and safety, < Company Name Here > will not permit the excessive use of overtime. < Managers > are prohibited from requesting frequent use of overtime to complete projects and/or meet deadlines. If a department is unable to meet deadlines without the use of overtime for < number of months > consecutive months, the Manager must conduct a formal assessment on ways to improvise the working process.

Unauthorised Overtime

< Managers > and employees who fail to obtain the appropriate authorisation before working overtime will be subject to disciplinary action, up to and including termination. < Company Name Here > will not be financially responsible to pay any unauthorised overtime. In cases of emergency, employees may be requested to work overtime. However, an employee reserves the right to refuse overtime if the notice period is too short or for any valid reason.

General Disciplinary Guidelines

• Uncommon and unintentional violations may warrant a verbal and/or written warning.
• Frequent and intentional violations may lead to suspension and/or termination.

An employee is allowed to request a union representative or witness to attend all disciplinary meetings. Before approaching an employee suspected of violating policy, it is advisable to first contact the Human Resource (HR) department for procedure guidelines.

Special Circumstance and Exception

Any Deviation from this policy has to be approved by HR. Any changes to the policy have to be approved by Legal and Compliance

Non-compliance and Consequence

Violation of this overtime policy is subject to disciplinary action, up to and including termination. If an employee, including Floor Supervisor and/or Manager, is suspected of violating the policy, he/she must undergo a thorough investigation. The circumstances of each violation will determine the severity of each scenario.