The Company Overtime Policy is designed to reduce expenses for labor by controlling the cost of overtime pay to employees who have worked overtime in order to make deadlines. As a company, we have a commitment to pay overtime wages at appropriate pay amounts in a timely manner.
It is possible that employees are required to work over the weekend during peak periods to ensure that certain tasks, projects or products are completed in time. However, we must at a minimum adhere to all applicable laws and regulations regarding wages and hours and regulations and offer legally-mandated benefits. The policy will address minimum wage levels overtime hours, hourly rates, non-exempt and exempt classification as well as other elements of compensation.
Purpose Of Company Overtime Policy
The company’s policy on overtime provides a way to compensate employees for working hours that are outside of their regular schedule.
Ensure that employees are appropriately compensated for any extra effort they put into the project they are assigned to complete within the timeframe.
Reduce the risk of abuse during overtime and loss of productivity dangers to health and safety, and other issues that are relevant.
Scope
This policy applies to all employees with the right to work in weekend hours, off-hours and on holidays. Paid leaves such as holiday and sick leave does not affect work time. Staff members who are managers do not have the right to Overtime Policy.
Additional time is at the discretion of the employee or with supervision approval (working between lunch and breaks late or arriving up late) cannot be counted as overtime.
Overtime compensation can also be paid as paid time off, if both supervisor and employee accept this.
Paid time off is required to be used during (number of) months following the time it was earned, unless agreed by the supervisor. Supervisors are able to extend this period by no more than (number of months).
Eligibility
All employees who are not exempted can claim overtime compensation.
Exemptions are available to non-union employees working in managerial or supervisory posts.
Overtime Approval
Supervisors must obtain approval from the manager prior to implementing Overtime Policy. Employees who feel they need overtime in order to finish the week’s workload must inform their supervisors ahead of time. They should seek prior approval before working hours that go beyond their regular schedule. The approval is required for working hours that are more than the number of hours during a week.
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Mandatory Overtime
In times of high demand companies may need employees to work longer hours. Overtime is regarded as a condition of employment at the point of the need. Refusal to accept it after reasonable notice is given can result in discipline, including dismissal.
Limitations
There are limitations on overtime that employees must keep in mind.
Each employee is expected to finish their work in the time frame specified by the business.
If necessary, overtime must be limited to emergency situations or in cases where the work is outside of the normal timeframe.
The concept of overtime should not be viewed as a potential sources of revenue. In all instances, it is the sole management’s discretion.
Working on public Holidays (including weekend days) is also considered overtime.
To create a healthy work setting We:
Make sure you record time-offs accurately and regularly.
Encourage employees to work over only if they must complete work urgently or to meet an obligation.
Are you prepared in place to allow employees to finish their work during regular working hours.
Reduce gradually the amount of overtime management system you work when you notice decreases in work-quality or other issues due overworking.
Establish a daily/weekly maximum for overtime that is (number of working hours) per day or (number of working hours) each week. Employees who work longer than this amount are compensated in accordance with the law. However, we encourage employees to adhere to this limit.
Excessive Overtime
The need for overtime is often for emergencies, high workloads, or any other issue that requires strict deadlines. But, excessive and frequent work hours are detrimental to employees’ health and productivity.
Supervisors who allow employees to work overtime without obtaining prior approval from management could be liable to disciplinary action. Supervisors should refrain from continuously relying on hours of overtime to complete a week’s worth of work without being approved by management. In such instances the supervisor may get placed under a performance-improvement program or under disciplinary sanctions.
We are trying to prevent incidents of abuse of our overtime management system, whether by employees or the company which may lead to litigation. In this regard:
Managers should avoid incentivizing their team members to work long hours.
Employees must avoid working excessive hours in pursuit of the highest pay as it could lead to a compromise in the quality of their work.
In order to be properly compensated the right amount, managers and employees should use our timekeeping systems to help us to ensure that we keep exact reports.
The employees should be aware of this policy and address any concerns to our Human Resources (HR) Department.
Terms You Should Know
Overtime – Work done during non-working hours.
Overtime pay – Monetary or compensated time off (depending on the type of employment you have) for the number of hours which eligible employees work in excess in (number of) hours during a workweek.
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