DOCSLIB.ORG

Working on Overtime: an Update on Remuneration

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Working on Overtime: an Update on Remuneration Working on Overtime: An Update on Remuneration Raja Vishnu Sivarajah, IR Law Consultant NELC 2018 Working on Overtime: An Update on Remuneration Objectives 1) A run through on hours of work and overtime as prescribed by the law 2) Overview of industry practice on overtime 3) Inconsistencies in industry overtime rates with that prescribed by the law 4) Advise or guidelines to correct inconsistent overtime practices Application of Overtime Applies for ‘employees’ under Employment Act 1955 (‘EA 1955’) Act [First schedule, EA 1955] covers all persons employed under a Contract of Service whereby: • Person’s wages do not exceed RM 2,000 p.m. irrespective of occupation. • Person employed in manual labour irrespective of amount wages. • Person employed in operation/maintenance of mechanically propelled vehicles. • Person supervising or overseeing other employees engaged in manual labour. Application of Overtime (Cont’d) • Person employed in any vessel registered in Malaysia except:- - An officer under Merchant Shipping Act of U.K. - Holder of Local Certificate under Merchant Shipping Ordinance 1952. - Person with agreement under Merchant Shipping Ordinance 1952. • Person engaged as a domestic servant. Overtime (Definition) Employment Act 1955 (EA 1955) : Hours of work Section 60A. 3(b) • (b) In this section ―overtime‖ means the number of hours of work carried out in excess of the normal hours of work per day. Hours of work • Employees shall not be required to work: - more than 8 hours a day; if less up to 9 hours on other days (This means that the hours of hours of work in a day excluding meal breaks is eight hours) - more than 48 hours per week. Section 60A(1) Hours of work S.60A(9) Definition Of Hours Of Work (does not include meal break) • Hours of work is defined as the time during which the employee is at the disposal of the employer and is not free to dispose of his own time and movements. If the employee is permitted to leave the premises during his meal break, that break would not be part of his hours of work. Hours of work (cont’d) S.60C Shift Work (Exception) • An employee who is engaged in shift work may be required to work more than eight hours in one day provided that the average number of hours worked over three weeks or any period exceeding three weeks, does not exceed forty eight hours per week. Overtime (Definition) Employment Act 1955 (EA 1955) : Hours of work Section 60A. 3(b) • (b) In this section ―overtime means the number of hours of work carried out in excess of the normal hours of work (does not include meal break) as agreed under employment contract. • Example: • Normal hours of 9.00am-6.00pm (Mon-Fri) as stated in the employment contract, then overtime shall be the hours of work (with superior’s approval) before 9.00am or after 6.00pm Overtime (based on EA 1955) - Work in excess of normal hours of work. - Rate of payment 1½ times the hourly rate of pay (normal working day) – Section 60A, EA 1955 - Limited to 104 hours a month (Employment (Limitation Of Overtime Work) Regulations 1980. - Work done on rest days and gazetted holidays not overtime.-Section 60A(3)&(4) Overtime: Based on Employment Act 1955 Working on normal day or Work during normal Normal pay rate (1 day rate) Saturday (off-day) - Section work hours 60A, EA 1955 (9.00am-6.00pm) OT (beyond 6.00pm) 1.5 hourly rate Working on Sunday (Rest-day) For work during ½ day rate – Section 60 EA 1955 normal work hours (below 4 hours) For work during 1 day rate normal hours (above 4 hours) For OT (beyond 2x hourly rate 6.00pm) Working on Public Holiday (PH) For work (even for 2 days’ rate + holiday pay (1 – Section 60D, EA 1955 one hour work) day’s rate) during normal work hours For OT (beyond 3x hourly rate 6.00pm) Overtime (industry practice) Manufacturing, SMEs, construction industry as examples: Work done on rest days and gazetted holidays treated as overtime – overpayment (double rate) and inconsistent with Section 60A(3)&(4) Example: Work on Rest day (Sunday) 9.00am - 6.00pm (Industry practice rate: 8hrs x 2times hourly rate) Inconsistent with EA 1955 as work done on rest days and gazetted holidays not overtime – Section 60A(3)&(4) Overtime (industry practice – cont’d) Manufacturing, SMEs, construction industry as examples: Work done on public holidays treated as overtime. Example: Work on public holiday 9.00am - 6.00pm (Industry practice rate: 8hrs x 3x hourly rate) Inconsistent with EA 1955 as work done on rest days and gazetted holidays not overtime - Section 60A(3)&(4) Effect of inconsistent overtime industry practice) 1) Increased costs – Employers not keen to award annual increments for fear of increased costs in overtime. 2) Trade disputes (non compliance under s. 56, IR 1967 Act) for failure to comply to article on annual increment 3) Employees deliberately slowing down work in order to complete job assignments during overtime 4) Excessive MCs after work on rest days and public holidays 5) Breach of Employment (Limitation Of Overtime Work) Regulations 1980 (limitation of 104 hours overtime a month) 6) Low basic salary (to counter high overtime rates) thereby relying more on foreign workers HR Suggested Solution (to overcome effect of inconsistent practices) 1) Revamp overtime rates for new joiners, to be more consistent with EA 1955 (to provide other incentives for work on rest days and public holidays to make such work attractive if EA 1955 rates are perceived to be too low) 2) More lucrative basic wages to lure Malaysian workers (less reliance on foreign workers) once overtime rates have been revamped 3) Set target oriented incentives to achieve productivity without overtime (example monthly company sponsored dinner when targets have been met without overtime) THE END Thank you .
Load more

Recommended publications
  • The Racial D~Vision of Labour in Soutie Africa+
    CAP1TY.L F?ESTRUCTORING AKD THE MOD~CATIONOF THE RACIAL D~VISIONOF LABOUR IN SOUTIE AFRICA+ Robert Davies Recent months* have seen a number of signs that a process of restructuring involving certain modifications to the racial division of labour and job colour bar regulations is currently underway in South Africa. In December 1977, for example, a number of statutory job reservation deteminations were scrapped by the Ivlinister of Labour. In June of this year an agreement between the Steel and Engineering Industries Federation (SEIFSA) and the wkite trade union bureaucracies abolished previous closed shop agreements which had the effect of barring Africans from certain grades of work; and similar agreements have also been entered into in other industries, notably fmznfture making. (1) But the most significant moves in this direction are expected to follow the publication of the report of the Wiehahn Commission of Inquiry into industrial legislation later this year,** llInformedmesses1' suggest that the Commission will, in addition to recommending a strategy aiming at the incorporation of the African trade union movement into a bureaucratic and rigidly controlled "industrial relationsl1 system, also recommend the repeal of all statutory "job reservatione1legislation and the prohibition of closed shop agreements which have the effect of restricting certain places in the division of labour to members of particular racial groups. (2) Although these moves in no way foreshadow the final end of the job colour bar in South Africa (the alternative forms of llprotection of minority ri&tsn which the Commission will recommend will probably amount in practice to a more concealed and less comprehensive but none the less real job colour bar), lkey are impor.tant moves in the class struggle with potentially significant effects on the class structure asnd future trajectory of class S-1;xuggle.
    [Show full text]
  • Low-Paid Employment and Moving Up: a Closer Look at Full-Time, Full-Year Workers 1996-2001 by Teresa Janz
    Catalogue no. 75F0002MIE — No. 009 ISSN: 1707-2840 ISBN: 0-662-37994-2 Research Paper Income research paper series Low-paid employment and moving up: A closer look at full-time, full-year workers 1996-2001 by Teresa Janz Income Statistics Division Jean Talon Building, Ottawa, K1A 0T6 Telephone: 613 951-7355 This paper represents the views of the author and does not necessailyr reflect the opinions of Statistics Canada. How to obtain more information Specific inquiries about this product and related statistics or services should be directed to Client Services, Income Statistics Division, Statistics Canada, Ottawa, Ontario, K1A 0T6 ((613) 951-7355; (888) 297-7355; [email protected]). For information on the wide range of data available from Statistics Canada, you can contact us by calling one of our toll-free numbers. You can also contact us by e-mail or by visiting our Web site. National inquiries line 1 800 263-1136 National telecommunications device for the hearing impaired 1 800 363-7629 Depository Services Program inquiries 1 800 700-1033 Fax line for Depository Services Program 1 800 889-9734 E-mail inquiries [email protected] Web site www.statcan.ca Ordering and subscription information This product, Catalogue no. 75F0002MIE2004009, is available on Internet free. Users can obtain single issues at: http://www.statcan.ca/cgi-bin/downpub/research.cgi. Standards of service to the public Statistics Canada is committed to serving its clients in a prompt, reliable and courteous manner and in the official language of their choice. To this end, the Agency has developed standards of service which its employees observe in serving its clients.
    [Show full text]
  • Modern Slavery Typologies for Financial Services Providers
    Modern Slavery Typologies for Financial Services Providers Modern Slavery Typologies for Financial Services Providers INDEX 3 The ‘Modern Slavery Typologies’ Project 10 Forced Prostitution 16 Fishing 22 Domestic Servitude 28 Construction 34 Manufacturing: Textile and Apparel 40 Agriculture: Plantations 46 An Overview of the Mekong Club 47 References The ‘Modern Slavery Typologies’ Project The purpose of this project This project aims to equip financial service professionals with an understanding of the trends and typologies that are present in modern slavery. This will enhance their ability to assess and mitigate risk within their client portfolios, and identify red flags for better monitoring and reporting of suspicious activity. There is a range of methods that financial institutions can employ in order to contribute to the fight against modern slavery. These include training frontline staff to recognise the signs of a trafficked person in a face-to-face encounter, identifying suspicious activity when the individual visits their branch, or identifying the physical signs of abuse that could indicate a person has been trafficked and is under duress. Furthermore, financial institutions can consider the industries, business types, and locations that are particularly high risk with regards to modern slavery activity. By understanding the typical profile of businesses and institutions that are ‘high risk’, the financial service provider can adjust its risk appetite to avoid funding or supporting illicit activity. In addition, certain transactional activity carried out by individuals or businesses may indicate illegal activity. Financial institutions have a wealth of transactional data at their disposal, but it is important for those assessing this data to understand the patterns that could indicate modern slavery activity.
    [Show full text]
  • What They Believe and Where They're Taking Us
    — IN CANADA — What They Believe and Where They’re Taking Us An Express Employment Professionals White Paper ExpressPros.com/CA “When we talk about the labour force only in terms of ‘blue collar’ and ‘white collar,’ we’re oversimplifying. Understanding the modern workforce requires taking a closer look at the vast middle, rethinking old labels and getting to know this vital group: grey collar workers.” —Bill Stoller, CEO, Express Employment Professionals A Nationwide Study A survey of 507 grey collar workers was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals between June 18 and July 8, 2019. Grey collar workers were defined as adults ages 18+ who are employed full-time, employed part-time or self-employed and work in one of the following professions: airline pilot or flight attendant, agribusiness professional (e.g., farmer, land manager), certified/licensed salesperson (e.g., real estate broker, stockbroker, insurance broker), clergy (e.g., minister, rabbi, imam), child care (e.g., nanny, au pair), engineer (e.g., mechanical, electrical, avionics, civil), firefighter, funeral director/technician, food preparation and catering (e.g., chef, sous chef), high-technology technician (e.g., lab technician, helpdesk technician, IT professional, medical equipment repair, solar panel installer), non-physician healthcare professional (e.g., nurse, emergency medical services personnel, physician’s assistant), paralegal, police officer, protective services, military, security or civil defense, professional musician/artist, school administrator, teacher, educator or other academic field worker, or typist/stenographer). The survey also included 500 Canadian white collar workers (defined as adults ages 18+ in Canada who are employed full-time, part-time, or self- employed and work in an office, cubicle, or other administrative setting).1 2 GREY COLLAR: WHAT DOES IT MEAN? Blue collar.
    [Show full text]
  • Singapore 2021-2022 Clyde & Co Clasis Singapore Pte
    EMPLOYMENT LAW OVERVIEW SINGAPORE 2021-2022 Clyde & Co Clasis Singapore Pte. Ltd. / Proud Member of L&E GLOBAL EMPLOYMENT LAW OVERVIEW an alliance of employers’ counsel worldwide 2021-2022 / SINGAPORE | 1 www.leglobal.org TABLE OF CONTENTS. I. GENERAL OVERVIEW 03 II. HIRING PRACTICES 04 III. EMPLOYMENT CONTRACTs 06 IV. WORKING CONDITIONs 08 V. Anti-DiscriminAtion LAws 10 VI. PAY EQUITY LAWS 12 VII. SOCIAL MEDIA AND DATA PRIVACY 13 VIII. TERMINATION OF EMPLOYMENT CONTRACTs 14 IX. RESTRICTIVE COVENANTS 16 X. TRANSFER OF UNDERTAKINGS 17 XI. TRADE UNIONS AND EMPLOYERS ASSOCIATIONS 18 XII. EMPLOYEE BENEFITS 19 EMPLOYMENT LAW OVERVIEW an alliance of employers’ counselcounsel worldwideworldwide 2021-2022 / SINGAPORE | 2 I. GENERAL OVERVIEW 1. INTRODUCTION The Singapore employment legal system is comprised of employment legislation and common law principles. In addition, guidelines and advisories from the Ministry of Manpower (“MOM”) and the Tripartite Alliance for Fair & Progressive Employment Practices (“TAFEP”) (consisting of the Ministry of Manpower, National Trade Union Congress and Singapore National Employers Federation) are highly persuasive. Employment- related claims in Singapore can be heard in the Employment Claims Tribunal, State Courts of Singapore and the Supreme Court of Singapore. employers and applicable employees would need 2. KEY POINTS to meet the minimum standards prescribed under the Employment Act. Part IV of the Employment • The Employment Act is Singapore’s main piece Act, which provides for rest days, hours of work of employment law legislation and provides and other conditions of service, only applies to: a for the basic terms and working conditions for workman (doing manual labour) earning a basic employees.
    [Show full text]
  • Under the Realm of Precariousness: Slavery and the Meaning of Freedom of Labour in the Nineteenth Century
    Topoi vol.2 no.se Rio de Janeiro 2006 Under the Realm of Precariousness: slavery and the meaning of freedom of labour in the nineteenth century Henrique Espada Lima ABSTRACT This article examines the ambiguities raised by the concept of “ labor freedom” in the XIXth century, through a comparative perspective of not only the history and historiography of slavery, but also the social, economic, and institutional history of labor. It considers that this approach will allow a better understanding of the collective experience of free laborers as well as slaves, in order to criticize the “ transition” model that is still used – often without any criticism – by the historiography on slavery and free labor in Brazil and in the Americas to explain the relationship between freedom and bondage in labor history. Some of the questions raised in the first part of the article will be used to analyze a sample of labor contracts between formal slaves and their formal masters or new bosses, notarized in the city of Desterro, in Southern Brazil, between the 1840s and the 1880s. Keywords: slavery, freedom, labor, wage contracts. 1. The market society utopia The society that was built in the nineteenth century was based on ideological principles established by political economy in the eighteenth century: namely the belief that social relations should be organised to express the ‘natural’ impulse of man to seek his material interests freely and individuallyi. The model of this society is commerce, the market: the place where individuals operate according to a rationality defined by the maximisation of gain. The impulse for exchange and bargaining, which constitutes a central part of human nature, is in the origin of society and defines it.
    [Show full text]
  • The Impact of the Technological Revolution on Labour Markets and Income Distribution
    Department of Economic & Social Affairs FRONTIER ISSUES 31 JULY 2017 The impact of the technological revolution on labour markets and income distribution CONTENTS Executive Summary .................................................... 1 1. Introduction ....................................................... 3 2. A new technological revolution? ....................................... 4 A. Technological progress and revolutions ............................. 4 B. Economic potential of the new technological breakthroughs ............. 7 3. Long term and recent trends .......................................... 8 A. Productivity trends .............................................. 8 B. Sectoral employment shifts and work conditions ..................... 11 C. Income inequality .............................................. 14 4. How does technological innovation affect labour markets and inequality? ..... 17 A. Job destruction and job creation ................................. 17 B. Occupational shifts, job polarization and wage inequality .............. 20 C. Technology and globalization .................................... 21 D. Technology and market structures. .22 E. Technology and the organization of work ........................... 23 F. Technology and the informal sector ............................... 23 G. Technology and female labour force participation .................... 24 5. Looking ahead: What will technology mean for labour and inequality? ........ 26 A. The future of technological progress ............................... 26
    [Show full text]
  • Intellectual and Manual Labour
    Critical Social Studies Editors: jock young and paul w alton The contemporary world projects a perplexing picture of political, social and economic upheaval. In these challeng­ ing times the conventional wisdoms of orthodox social thought whether it be sociology, economics or cultural studies become inadequate. This series focuses on this intellectual crisis, selecting authors whose work seeks to transcend the limitations of conventional discourse. Its tone is scholarly rather than polemical, in tpe belief that significant theoretical work is needed to clea|- the way for a genuine transformation of the existing social .order. Because o f this, the series relates closely to recent developments in social thought, particularly to critical theory and neo-Marxism - the emerging European tradi­ tion. In terms of specific topics, key pivotal areas of debate have been selected, for example mass culture, inflation, problems of sexuality and the family, the nature of the capitalist state, natural science and ideology! The scope of analysis is broad: the series attempts to break the existing arbitrary divisions between the social-studies disciplines. Its aim is to provide a platform for critical Social, thought (at a level quite accessible to students) to enter into the major theoretical controversies of the decade. ^ uooks in the series PUBLISHED Trade Unions and the Media Peter Beharrell and G reg Philo (eds) Beyond the Sociology o f Conflict David Binns A Theory o f Semiotics Umberto Eco Capitalism in Crisis: Inflation and the State Andrew Gamble
    [Show full text]
  • Slavery and Human Trafficking Statement 2016
    Slavery and human trafficking statement 2016 1. Introduction 2. About our business 3. Our code and human rights policy 4. Modern slavery and our governance 5. Training 6. Assessing the risk of modern slavery 7. How we manage modern slavery risks in our supply chain 8. Looking ahead © BP 2017 Slavery and human trafficking statement 2016 This statement relates to the financial year ending 31 Employees are required to report any human rights December 2016. It is published by BP p.l.c. and its abuse in either our operations, or those of our relevant subsidiaries1 in compliance with the UK contractors and other business partners. The code Modern Slavery Act, which requires that certain makes explicit reference to the role all parties can play in companies provide information regarding their efforts the elimination of human trafficking and forced labour. to prevent slavery and human trafficking in their own Our human rights policy commits us to respect businesses and supply chains. internationally recognized human rights as set out in the International Bill of Human Rights and the International 1. Introduction Labour Organization’s Declaration on Fundamental Principles and Rights at Work. We are working to align BP supports the elimination of all forms of modern with the UN Guiding Principles on Business and Human slavery. Such exploitation is entirely at odds with BP’s Rights by implementing our human rights policy. ethics and our strong commitment to respecting the rights of our workforce. We are determined to play We address failures by our employees to adhere to our our part by taking actions to safeguard the rights of code and policies; this may involve disciplinary action, up our employees and contractor personnel, building on to and including termination of employment.
    [Show full text]
  • The New Industrial Revolution
    559 THE NEW INDUSTRIAL REVOLUTION Richard Florida This article outlines a new framework for understanding the current period of global restructuring, focusing on the relationship between technological change and organizational change. After reviewing the major approaches in the debate over future pathways to industrialization, a new perspective for understanding the ‘new industrial revolution’ is presented. At the core of this revolution is the emergence of a series of powerful new industrial technologies, which is giving rise to new forces of production and a concomitant transformation in production organization. A new shop floor is emerging, in which innovation and production, intellectual and manual labour are increasingly integrated. As this process of industrial restructuring evolves, success will depend on organizational forms which effectively harness and mobilize collective intelligence. An employee today is no longer a slave to machinery who is expected to repeat simple mechanical operations like Charlie Chaplin in the film Modern Times. He is no longer a beast of burden who works under the carrot-and-stick rule and sells his labor. After all, manual labor can be taken over by a machine or computer. Modern industry has to be brain intensive and so does the employee. Neither machinery nor animals can carry out brain intensive tasks (Akio Morita, Sony Corporation).’ The accumulation of knowledge and of skill, of the general productive forces of the social brain, is thus absorbed into capital, and hence appears as an attribute of
    [Show full text]
  • Attitudes of Secondary School Leavers Towards Manual Work: Implications for Youth Employment in Botswana
    http://socialwork.journals.ac.za/ http://dx.doi.org/10.15270/47-1-146 101 ATTITUDES OF SECONDARY SCHOOL LEAVERS TOWARDS MANUAL WORK: IMPLICATIONS FOR YOUTH EMPLOYMENT IN BOTSWANA Kwaku Osei-Hwedie, Diana Kgwatalala INTRODUCTION The importance of generating opportunities for citizens to participate in the development of self and country cannot be exaggerated. Employment is usually the main way in which people contribute to the economic growth of a country. Work is an essential part of human life that helps in determining, among other things, one‟s social status. Therefore, it is important that at a certain stage in life one should acquire a job. The International Labour Organisation (ILO) (2008) notes that at some point in their lives youths will enter the world of work as a path toward social integration and as a means to earn an income. Youth unemployment has progressively emerged as a major problem in many developing countries and the world at large. For many youths entry into the labour market comes directly after completing school, depending on the schools‟ exit points of the particular country. Botswana‟s Secondary School education, which is completed in five years, has two exit points. The Junior Certificate (JC) runs for three years, and those who do not pass exit after Form 3. The Botswana General Certificate of Secondary Education (BGCSE) takes two years and the exit point is Form 5 for those who do not qualify to proceed to the tertiary level. YOUTH UNEMPLOYMENT The ILO (2009) suggests that at the end of 2008 working poverty, vulnerable employment and unemployment were beginning to rise as a result of the global financial crisis.
    [Show full text]
  • 3.3 Philippines Manual Labour
    3.3 Philippines Manual Labour Labour and employment are protected by the Labour Code of the Philippines. Without taking away from the code, some key points can be found in the belo w table: Area Provisions Cove The Title shall apply to employees in all establishments and undertakings whether for profit or not, but not to government employees, managerial rage employees, field personnel, members of the family of the employer who are dependent on him for support, domestic helpers, persons in the personal service of another, and workers who are paid by results as determined by the Secretary of Labour in appropriate regulations. Hour Normal hours of work should not exceed eight hours, exclusive of meal breaks s of Work Meal Not less than 60 minutes Brea ks Night Employees are entitled to a 10% increase for hours worked between 2200 HRS – 0600 HRS Shift Overt Employees are entitled to a 25% increase for hours worked in excess of an eight-hour day. Not exceeding 6 working days or 48 hours a week. ime Emer Any employee may be required to perform overtime work in a number of circumstances, including when the country is at war or when any other genc national or local emergency has been declared by the National Assembly or the Chief Executive. y Overt ime Rest Employees are entitled to no less than 24 hours rest following six consecutive days of work. There are several exclusions to this clause including Day in case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and property, or imminent danger to public safety.
    [Show full text]