Need employees to work overtime this December but can’t afford it? This little-known fact could help you solve your dilemma

Simangele Mzizi, Fsp Business, 22 Dec. 2014

Tags: overtime, overtime pay, bcea, overtime work

Great news! You just got a big contract from a new client.

You’re excited because business will finally pick up.

But your excitement quickly disappears when you realise the client wants you to start doing work in December. And with the majority of your employees already on leave, it’s clear you’ll need to ask those who aren’t on leave to work overtime.

But the problem is, business hasn’t been great and you can’t afford to pay for overtime.

So what can you do? Should you just forget about the contract all together?

Not quite.

Keep reading to discover one little-known fact that could help you solve your overtime dilemma.

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Here’s the little-known fact that could help you if you can’t afford to pay for overtime

Fact: You dont have to pay overtime to all of your staff.
It’s true.
According to Section 6(1) and 6(3) of the BCEA, you don’t have to pay overtime to the following employees:
  • Senior managerial employees;
  • Sales staff who travel to customers and regulate their own hours of work;
  • Employees who work less than 24 hours a month for you; and
  • Employees who earn more than the earnings threshold. (The current earnings threshold is R205 433.30 per year. Please note that the Labour Minister changes this amount from time to time.)
Important: Even though the BCEA has this to say, you must pay overtime regardless of the legislated earnings threshold if you’ve agreed in your employment contract to pay overtime.
So if you can’t afford to pay overtime, it may be a good idea to look at whether or not you have staff who fall in the category of employees you don’t have to pay overtime to. You can then ask them to work overtime and not pay. Problem solved.
PS: To find out more information on overtime, check out Your Essential Guide to Overtime: Everything You Didn’t Know About Overtime.

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