Compensation

Overtime Compensation

According to the General Wages Order, normal working hours are 52  per week and 60hours per week for the night workers. Normal working hours per day are not clearly mentioned, however, for young workers normal working hours are 6 per day.

In accordance with the Employment Act 2007, employer may set working hours in such a way that the worker gets a day off in a week. An employer is required to pay at least 150% of the wage if overtime work is performed during normal working hours. Overtime payment for the workers that are not employed on hourly basis, is calculated on the basis of the basic hourly rate of at least one two-hundred-and twenty-fifth of the employee’s basic minimum monthly wage.

The Wages Order also specifies that overtime plus time worked in normal hours per week  may not exceed 116 hours in total in any period of 2 consecutive weeks. Thus a worker can work only 6 hours of overtime in a week. For night workers this limit is 144 hours per week. For night workers, 12 hours of overtime is allowed.

Although it would normally be considered a criminal offence to force workers to do overtime, still employers have the right to schedule overtime for their employees. Therefore, employees can be asked to work a reasonable amount of overtime to complete a job. However, collective bargaining agreements often restrict the authority of employers regarding overtime. The law does not provide for a compensatory time-off for overtime work done.

Sources: §5-6 of the Regulation of Wages (General) Order 1982;  §27 of the Employment Act 2007

Night Work Compensation

There is no premium payment for night work. Working hours for night workers are more than day time workers. Normal working hours at night cannot  exceed 60 hours per week and overtime of 24 hours is allowed in a period of 2 consecutive weeks. The total working time, inclusive of overtime, may not exceed 144 hours for night workers.   

Sources: §5-6 of the Regulation of Wages (General) Order,1982

Compensatory Holidays / Rest Days

No provision could be identified in laws to require an employer to provide compensatory rest day for working on weekly rest day or public holiday.

Weekend / Public Holiday Work Compensation

Workers may be required to work on weekly rest days and public holidays. In such circumstances when employees have to work on official holidays, they are entitled to receive wages at a premium rate of 200% of the normal hourly wage rate. Workers working on weekly rest days are entitled to premium pay at the rate of 200% of the normal wage rate.

Source: §6 (1b) of the Regulation of Wages (General) Order 1982

Regulations on Compensation

  • The Labour Institutions Act, No.12 of 2007
  • Employment Act, 2007
  • Regulation of Wages (General) Order 1982
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