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Why an Organization Needs a Well Defined Employee Overtime Policy?

Employee overtime is nothing but an additional work done by an employee beyond his normal working hours, where he is paid a fixed or additional sum of money for the same. Different countries have made different laws in order to prevent employer to fo..

Employee overtime is nothing but an additional work done by an employee beyond his normal working hours, where he is paid a fixed or additional sum of money for the same. Different countries have made different laws in order to prevent employer to force his employees to work extra than their normal working hours. Many a times some companies assign work in such a way that most of the employees have to spend more time than their normal working hours in order to complete the given job, but if the employee is not getting paid for those extra hours spent by him, he may get frustrated and this would cause a negative impact on his performance. He may even think that he is been taken advantage of and might sometimes plan to leave the job. Making employees work and not paying them is totally.†
In every organization, it is the responsibility of the management to make sure that they have the right data on employee overtime. Most of time it has also been observed that an employee generally works more than his working hours in order to get the work done, this may be due to his poor time management skill. In such cases the management has to make sure that they provide the employees with proper time management training to accomplish the given job in the given time.†
They should be thoroughly trained in order to get this problem resolved at the earliest and avoid any further issues. Here the basic reason for over time is the inefficient performance of the employee, the organization is not at fault but the employee himself is responsible for it as he is not able to complete the assigned work within the given time frame. Thus the employer is not at all liable for the employee overtime or any other kind of compensation in such a scenario.
When it comes to employee overtime, company management must always have some basic over time polices that must be followed strictly to avoid unnecessary overtime and prolonged hours of work. To avoid such situation of unnecessary overtime, overtime must not be allowed unless the manager or a concern person gives an approval for it. This will help the management to spot any issue, if it's there and get it resolved as soon as possible, so that the same should not be repeated in near future. At the same time the management must strictly monitor the log in and log out time of their employee, including the break timings, to avoid any confusion regarding the total working hours of an employee.
Employee overtime can be compensated in various ways and it generally varies from organization to organization. There are different ways to compensate for the overtime done by an employee. Some organizations prefer to pay a cash amount according to the hours worked, which is mostly twice the regular hourly payment that is paid for normal working hours or even more depending upon the organization policy. While some organizations might even give compensatory offs as per the number of extra hours the employees has spent doing the overtime. Most of the timeBusiness Management Articles, employees work on their day offs or holidays. This can also be taken into account and considered as overtime. In this case employee gets compensatory off or paid leave for that particular day.

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ABOUT THE AUTHOR


Ryan Fyfe is the CEO of http://www.shiftplanning.com/ - An intuitive and free online employee scheduling tool for businesses of all sizes in all industries.



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