Overtime Compensation
The normal working hours are 8 hours a day and 40 hours a week. An employer can ask an employee to work beyond normal working hours, provided the employee's normal working hours, other than those engaged in shift work, do not exceed 9 hours in a day. In such a case, working hours need to be proportionately reduced on other days so that the total number of working hours in a week do not exceed 40 hours. The working hours of an employee engaged in shift work must not exceed 40 hours per week when averaged over 3 weeks. However, an employee may agree to work more than 3 hours of overtime per day or 10 hours of overtime per week.
On mutual consent, a worker may work up to 3 hours overtime in a day and 10 hours in a week. The employer is required to pay overtime at the rate of one and a half times the normal rate of pay (150% of the normal wage rate) when overtime work is performed on working days. If employees are required to work overtime on a weekly holiday, they are paid two times the rate of normal pay (200% of the normal wage rate).
However, overtime is not applicable where workers have been granted leave in lieu of overtime.
Sources: §56 & 57 of the Labour Act, 2017; §28 of the Labour Regulations, 2023
Night Work Compensation
An employer who requires an employee to perform night work is to obtain a written agreement from the employee to perform such work and to take special measures to ensure the employee’s health, safety and security.
Sources: §68 of the Labour Act, 2017
Compensatory Holidays / Rest Days
There is no provision for compensatory leave to a worker engaged on a weekly rest day. However, the Labour Act requires either one day compensatory leave for a worker engaged on a public holiday or monetary compensation.
Sources: §59 and 61 of the Labour Act, 2017
Weekend / Public Holiday Work Compensation
All employees are entitled to paid leave on public holidays. An employee who works on a public holiday is entitled to two times (200%) the regular hourly rate for working on a public holiday or one day paid leave by way of compensation. Where a worker is engaged for working overtime on weekly rest day, the compensation is 200%/two times the regular hourly rate.
Sources: §57 and 61 of Labour Act, 2017
