Overtime
Also called: OT, overtime pay
What is Overtime?
Overtime is work beyond normal working hours, paid at a premium rate set by labour law — commonly double the ordinary wage rate. Records of hours worked are a legal requirement, not an optional practice.
Why Overtime matters
Overtime is one of the largest hidden costs in restaurants and retail. Persistent overtime usually signals a rostering problem, and it is almost always more expensive than hiring for the gap.
Overtime formula
Overtime pay = Ordinary hourly wage × Overtime multiplier × Overtime hours
Statutory rates commonly require double the ordinary rate.
How Overtime works in practice
Track hours per employee weekly, not monthly, and compare the overtime bill against the cost of an additional part-time hand. Repeated overtime on the same shift is a scheduling defect.
Frequently asked questions
For covered employees, yes, at the statutorily prescribed rate, and hours must be recorded.