How to make the law work for you when it comes to overtime

Are you unaware of the little tricks regarding overtime that can make a big difference to your bottom line? Use the law to your advantage – read the report below to find out more.

You don’t always have to pay for overtime so why incur the expense?

You don’t have to pay all employees for overtime, even if they do work overtime. You don’t have to pay overtime to the following categories of employees (Section 6(1) and 6(3) of the BCEA):

  1. Senior managerial employees;
  2. Sales staff who travel to the premises of customers and who regulate their own hours of work;
  3. Employees who work less than 24 hours a month for you;
  4. Employees who earn more than R205 433.30 (The Minister will change this amount from time to time)
Warning! Remember that despite what the BCEA says, if you’ve agreed in your employment contract to pay overtime, you must! Be careful of agreeing to pay overtime if you’re likely to give your employee a salary increases that means he’ll earn more than R205 433.30 per year.

TIP:   Write the following clause into your employment
          Currently, employees who earn less than R205 433.30
          per year must be paid for overtime worked. If, at any
          stage, during your employment your remuneration is
          increased so that you fall outside this threshold, you
          will no longer be paid for overtime worked, although
          you will still be obliged to work overtime as and
          when required.

Take advantage of the flexibility the BCEA allows!

You can agree with your employee to give him time off in lieu of payment for overtime he’s worked – to take advantage of this, you must provide for it in your employment contracts.

Find out the vital clause you must include in your contract, as well as guidelines for overtime payment, in your Labour Law for Managers Loose Leaf. Order today!

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  • Do you know one day’s absence can cost you 3 days’ salary? Start proactively dealing with absenteeism today!
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