How should I be calculating my Employees Overtime?

(1)  Subject to this Chapter, an employer may not require or permit an employee to work—

(a) overtime except in accordance with an agreement;

(b) more than ten hours’ overtime a week.

[Sub­s. (1) substituted by s. 3 (a) of Act No. 11 of 2002.]

(1A)  An agreement in terms of subsection (1) may not require or permit an employee to work more than 12

hours on any day.

[Sub­s. (1A) inserted by s. 3 (b) of Act No. 11 of 2002.]

(2)  An employer must pay an employee at least one and one­ half times the employee’s wage for overtime worked.

(3)  Despite subsection (2), an agreement may provide for an employer to—

(a) pay an employee not less than the employee’s ordinary wage for overtime worked and grant the employee at least 30 minutes’ time off on full pay for every hour of overtime worked; or

(b) grant an employee at least 90 minutes’ paid time off for each hour of overtime worked.

(4)  (a)  An employer must grant paid time off in terms of subsection (3) within one month of the employee becoming entitled to it.

(b)  An agreement in writing may increase the period contemplated by paragraph (a) to 12 months.

(5)  An agreement concluded in terms of subsection (1) with an employee when the employee commences employment, or during the first three months of employment, lapses after one year.

(6)  (a)  A collective agreement may increase the maximum permitted overtime to 15 hours a week.

(b)  A collective agreement contemplated in paragraph (a) may not apply for more than two months in any

period of 12 months.

[Sub­s. (6) added by s. 3 (c) of Act No. 11 of 2002.]