Sunday, 20 March 2016

Everything you need to know about overtime :

Working hours in UAE is governed by UAE LABOUR LAW. Over time is calculated on the basis of basic salary only. There are many jobs which often require an employee to work overtime whether an employee entitled to overtime or not.


It always depends on the role of the employee and the working hours of the company has in place. Each employee should be aware of the normal working hours and how many additional hours an employee asked to work.

The overtime provision will not be applicable to the following positions:

>Senior Positions
>Administrative Supervisory Roles
>Crews of naval ships and Marine employees

As per UAE Labour Law an employee’s normal working day should not exceed 8 hours [update] OR 48 hours per per week. An employer is also able to request an employee to perform up to 2 hours of additional work, which will be treated as overtime. However, the working hours may be increased to nine hours per day in case of persons employed in trade, hotels , cafeterias guards.

Following hours are not included in computing over time:

>The time travelling to and from work.
>Resting and food break.

Computation/Calculation of Overtime:

Under UAE Labour Law, Article 67, Article 68, Article 68, Article 69, Article 70, Article 71 and Article 72 cover how to calculate overtime.
Computation of Normal Overtime:If the nature of the job requires overtime, the employees shall be paid overtime and the payment shall be equivalent to the wage paid for the ordinary working hours plus and increase of not less than 25% of his wage for the overtime period.

Example:

Basic Salary X 12/365= per day salary
Per day Salary/8=Per hour salary
Overtime amount is =Number of overtime hours X Per hour salary X 1.25

However, if the employee’s overtime fall between the hours 9.00 PM to 4.00 AM the employee will be entitled to an overtime equivalent to the normal working hours plus an increase of not less than 50% of his wage for the overtime period.

Example:

Basic Salary X 12/365= per day salary
Per day Salary/8=Per hour salary
Overtime amount is =Number of overtime hours X Per hour salary X 1.5

Computation of Friday Overtime:If the circumstances require the employee to work on a Friday, he must be granted either another day off (compensatory off) or receive his basic salary plus an additional 50 % of his remuneration (i.e, basic salary plus allowances). However, employee cannot be asked to work more than two consecutive Friday unless they are employed on a daily wage basis.

Example:

Basic Salary X 12/365= per day salary
Per day Salary/8=Per hour salary
Overtime amount is =No of overtime hours X Per hour salary X 1.5 or An additional day off.

Computation of overtime during Public holiday:

As per the Article 81 of UAE Labour Law, where the circumstances of the work make it necessary for a worker to work on public holidays or rest day in respect of which he/she is entitled to full or partial pay, he shall be granted compensatory leave in respect of such days, together with a bonus equal to 50 per cent of his remuneration. if he is not compensated for such days by leave, his employer shall pay him a bonus equal to 150 percent of his basic remuneration in respect of the days worked.

Example:

Basic Salary/30= per day salaryPer day Salary/8=per hour salaryOvertime= Number of overtime hours X Per hour salary X 1.5 in addition to one day compensatory off100 percent of normal daily remuneration basic salary plus allowances plus 150 per cent of basic salary.

OR

Example:

Basic Salary/30= per day salary

Per day Salary/8=per hour salary

Overtime= Number of overtime hours X Per hour salary X 2.5

Calculation of overtime is very easy and is clearly provided in UAE Labour law.

For more details or to file a complaint call MOL @ 800665



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