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Overtime work

What is overtime work?

Main HR glossary Overtime work
Overtime work refers to any work performed beyond an employee’s standard working hours. It can be voluntary or required, depending on the employment contract or specific business needs.

For example, if an employee stays late to finish an important project or assist a colleague, that extra time counts as overtime. In most cases, overtime must be compensated with additional pay or time off.

There are various reasons for overtime, including urgent projects, staff shortages, or seasonal workload increases. However, excessive overtime can lead to employee burnout and reduced productivity.

Overtime is regulated by labor laws in many countries. There are often limits on how much overtime employees can work and rules for compensation. For instance, the first overtime hours might be paid at 1.5 times the regular rate, while additional hours could be double pay. These regulations encourage employers to use overtime only when necessary.

Companies that manage overtime effectively balance workload demands with employee well-being. This helps maintain motivation, trust, and overall job satisfaction.

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