Work Hour and Overtime Compliance. Are You in the Know?


The intricacy of the modern world poses a lot of challenges in managing today’s workforce. Handling workforce and work time are not as straightforward as taking note when somebody comes to work at 9 and leaves at 6pm, for example. Work hour is not only limited to what an employer needs from their employees, it also has to fulfill employee rights according to the law. An employee can’t simply request to work overtime at anytime they please just to finish the job and earn more money but it has to adhere to the company’s budget, the labor law and overall ROI. An employer cannot demand an employee to work more than a certain hour daily to increase productivity, and the employee can’t work less than the agreed work time in the employment contract without consequences.

Managing workforce requires an application that can cater to compliances while keeping your company costs at its optimum level. 

Labor law of one’s country governs the work hours and the overtime imposed and taken by employer and employee. Malaysia for example, by law each employee is required to work 8 hours per day and 48 hours per week. Maximum total overtime allowed is 12 hours per day and 104 hours per month. Working overtime on a weekday entitles an employee to a 1.5 times wages calculation and 2 times if overtime happens on weekend rest days or holidays. Each employee should be given 1 day a week rest, 30 hours a week rest for shift workers, 30 minutes minimum break after 5 hours work and 45 minutes minimum break in 8 hours of work. While the rules sound simple to follow but without a proper application to monitor, abiding by these rules could pose a challenge to many companies. 

Mexico has different sets of labor law that limits only 3 hours per day overtime and a maximum of 9 hours overtime per week. The overtime is calculated twice the fixated wages in the first 9 hours and 3 times if it exceeds 9 hours. An employee should be given a one-day rest in a week and 30 minutes minimum break in 9 hours of work. Vietnam, on the other hand, allows a maximum overtime of 4 hours per day and 200 hours per year where the overtime will be paid 1.5% higher than the existing salary during weekdays and double during rest days.

Hence, when buying time attendance system, the software needs to have all these compliances settings in place. At FingerTec, our software TimeTec V3 and TimeTec TA provide users with the compliance settings for work hours, breaks and overtime to protect your company from getting fines and penalties for breaking the labor law, intentionally or ignorantly.

Ask yourself this, have your staffs been taking more overtime hours than permitted by law or you are not in the know?

Have they been taking breaks as required or they just stay in the office without recording proofs of breaks?

Has your Human Resource department been calculating their overtime right according to the labor rate or they forgot?

Bury the loopholes and start having a system that complies with the law and frees yourself from worries. And best of all, stick to a system that gives you automation and cost-effectiveness at the same time. Try FingerTec at info@fingertec.com

T he intricacy of the modern world poses a lot of challenges in managing today’s workforce. Handling workforce and work time are not as...

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