Compensation

Overtime Compensation

The normal working hours are 8 hours a day and 48 hours a week. An employer can ask the employee to work more than the normal working hours as long as the normal working hours of the employee, 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 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 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 

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 weekly rest day. However, the Labour Act requires one day compensatory leave for a worker who is engaged on a public holiday or a 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

Regulations on Compensation

  • Labour Act, 2017
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