HR Terminology

Overtime

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  7. Overtime: Definition

Overtime refers to the additional hours worked by an employee beyond their standard working hours. These extra hours are typically worked outside of normal working hours, which are defined by an organisation’s policies, employment contracts, or applicable labour laws.

FAQ

Not all employees are eligible for overtime. Some exemptions may apply based on job responsibilities, salary level, or industry. Exempt employees, such as certain salaried workers, may not be entitled to overtime pay. Understanding these exemptions is crucial for compliance with labour laws.

Overtime can be calculated based on different methods, including daily or weekly. It is essential to know which method aligns with local regulations. Some regions may have daily overtime requirements, while others focus on a weekly accumulation of hours.

Employers should implement robust time-tracking systems to accurately record hours worked by employees. Clear communication about overtime policies, obtaining prior approval for overtime work, and regularly reviewing and updating policies are crucial steps in managing overtime effectively and ensuring compliance with labour laws.

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