Overtime and shift work
Accurate capturing and managing your employees’ hours worked is essential, and a reliable and reputable time and attendance system will ensure your Payroll department achieves this.
Remember (or imagine) the frustration of manually tracking the employee’s time and attendance details. A nightmare!
Thankfully, the automated systems guarantee accurate recording and payments to workers, for overtime and Public holiday hours worked. But even an excellent automated system needs to be trained and informed Payroll and HR staff to interpret and understand the South African overtime and shift work legislation.
Overtime rights for employees earning above the threshold
Now, if your staff members are earning more than the current “earnings threshold” (which as of 2024 is R254,371.67 per year), a different set of rules comes into play when it comes to overtime, normal working hours, and holidays.
Simply put, employees who earn over this threshold aren’t automatically covered by certain basic protections in the BCEA (specifically those referring to working hours, overtime, meal breaks, rest periods, and work on Sundays or public holidays). This means they can’t demand paid overtime or capped working hours the way lower-earning employees can.
But—and it’s a big but—these employees still have important protections. Everything about their hours and overtime must be settled through mutual agreement between the employee and employer. It’s a negotiation, not something either party can enforce unilaterally. So for any additional hours, overtime, public holidays, or Sunday work, both sides need to sit down and reach a clear agreement on how it will work and what pay will apply.
Also critical: Employers can’t suddenly decide to strip away existing contractual benefits, working hours, or arrangements for those earning above the threshold. Agreements in place at hiring must be honoured unless both parties explicitly agree to a change. And, of course, the law still absolutely prohibits any form of forced labour—no one can be compelled to work overtime or extra shifts without consent.
In summary: Above-threshold earners don’t get automatic overtime payments or limits, but they can’t be forced to accept unfair changes to their work arrangements. It’s about negotiation, not demands, and mutual respect for the contract already in place.
What Does “Overtime Worked” Mean?
So, what exactly qualifies as “overtime worked”? According to the Basic Conditions of Employment Act, overtime kicks in the moment an employee exceeds their normal, contracted hours for the day or week. In practical terms, if someone’s employment contract sets their usual working week at 45 hours, any time spent working beyond that is considered overtime. The same logic applies for contracts with a 40-hour workweek—once those 40 hours are up, additional hours count as overtime, too.
The essential point: overtime is always measured relative to whatever has been stipulated as the standard working hours in the original employment agreement. Regular hours may differ between employees, but any work done over and above that agreed baseline lands in the overtime column.
Overtime for Employees Earning Above the Threshold
When it comes to employees who earn above the prescribed threshold, the approach to overtime takes a distinctly different turn. If you’re picturing someone waltzing into the payroll office demanding time-and-a-half for working late, press pause right there.
Employees exceeding the threshold amount are not automatically covered by the overtime rules in South Africa’s Basic Conditions of Employment Act. In other words, just because someone clocks extra hours doesn’t mean they can insist on overtime pay or compensatory time off—unless that was agreed upon from the outset.
Negotiation is Key
Here’s where things get interesting (and contractual):
- Neither side is the boss of overtime. Employers can’t simply instruct high-earning staff to burn the midnight oil without a mutual agreement. Likewise, employees can’t show up with a calculator expecting overtime rates unless it’s been previously settled.
- All conditions regarding overtime—including the number of hours, the type of compensation, and specifics like work on Sundays or public holidays—need to be negotiated and agreed upon by both parties.
- This is not just a matter of office etiquette; section 48 of the BCEA flatly prohibits forced labour. Compensation and extra hours must be the result of open conversation and a fair negotiation—not one-sided directives.
Protecting Previously Agreed Terms
It’s worth noting: If any employment agreement already covers conditions for overtime, those terms remain binding. Employers cannot unilaterally change these simply because an employee moves above the earnings threshold. Amending such terms requires agreement from both parties—no “just sign here” surprises.
So, in summary:
- For employees earning above the threshold, everything boils down to negotiation.
- Both employer and employee need to sit down and clearly agree on overtime expectations and compensation.
- What’s agreed is what sticks, unless both sides decide to renegotiate.
Whether you’re the payroll pro or the one negotiating your own terms, clear, written agreements are your best friend in the world of threshold overtime.
Overtime rules for high earners
If you’re dealing with employees who earn above the current earnings threshold, there’s a different set of overtime expectations in play. These employees are not covered by Section 10 (overtime) of the Basic Conditions of Employment Act, which means they generally aren’t legally entitled to overtime pay or paid time off for extra hours worked.
However, this isn’t a free pass for employers to pile on extra hours without discussion. An employer cannot compel high-earning staff to work overtime, nor expect them to do so without some form of agreement. Any overtime arrangements for these employees must be the result of mutual negotiation—ideally put in writing—so both sides understand the expectations and compensation (if any).
Simply put, the overtime landscape for staff above the threshold boils down to what you both agree on: if you want formal overtime pay or additional time off, it must be negotiated, not assumed.
Understanding the Earnings Threshold
Now, before diving headfirst into the rules about overtime, there’s a crucial threshold to know about—think of it as the “turnstile” that determines which sections of South Africa’s Basic Conditions of Employment Act (BCEA) apply to which employees.
The current earnings threshold:
As of now, the threshold stands at R254,371.67 per year. If an employee earns less than this, the BCEA wraps around them like a legal safety blanket, offering protections for working hours, overtime pay, rest periods, and more.
How this affects your rights:
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If you earn below the threshold:
You’re fully covered by the Act’s provisions on working hours and overtime. That means you can legally: -
Refuse to work beyond normal or overtime hour limits.
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Insist that overtime is only by agreement, not by default.
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Demand payment for overtime at a minimum of 1.5 times your regular wage, or opt for paid time off instead—whichever suits you best.
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If you earn above the threshold:
The situation changes. Those sections of the Act—covering overtime, rest, and certain leave rights—no longer apply automatically. Instead, everything comes down to negotiation: -
Neither the employer nor the employee can simply demand overtime (or refuse it) without mutual agreement.
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The terms around extra hours, pay rates, working Sundays, or public holidays must be spelled out in the employment contract, or negotiated as circumstances change.
Crucially, employers can’t use the threshold as an excuse to unilaterally alter employment terms for high earners. Any changes to hours or pay must be agreed upon by both parties.
This threshold, then, isn’t just a bureaucratic hurdle—it sets the playing field for what you can insist on versus what you’ll need to negotiate. Both payroll pros and employees should keep this in mind when discussing overtime and shift arrangements.
Who Is Excluded from Working Time Regulations?
Not everyone falls under the standard overtime and shift work rules set out in the Basic Conditions of Employment Act. In fact, a few groups of employees are specifically excluded from chapter two—so if you’re in one of these categories, those protections and obligations don’t apply.
The main exclusions are:
- Senior managerial employees: If you’re part of your company’s management team and have significant decision-making authority, these working time regulations don’t cover you.
- Sales staff with flexible schedules: Employees who spend their days traveling to customers and set their own working hours are also outside the scope.
- Casual or low-hour workers: Anyone who works less than 24 hours a month for an employer is not covered by these particular rules.
If you fall into any of these groups, the Act takes a hands-off approach when it comes to regulating your hours. For everyone else, however, the usual conditions and protections apply.
Can Employers Unilaterally Change Conditions for High Earners?
Here’s a crucial point for both Payroll and HR teams to keep top of mind: For employees earning above the current annual earnings threshold (R254,371.67 per year), employers can’t simply decide to change the terms of employment on their own. Those original employment agreements are binding, and any adjustments—whether to pay, hours, or responsibilities—must be agreed on by both employer and employee.
In other words, business owners and managers can’t pull a Houdini and magically alter contract terms the moment someone crosses the threshold line. Changes must be discussed and accepted by all parties, just as in any good partnership.
Here follows the PRIMARY rules for overtime and shift work;
- An employee must voluntarily agree to work overtime
- An employee must not work more than 3 hours overtime ( on any given day)
- An employee may not work more than 10 hours overtime (on any given week)
Payment for overtime must be ;
- calculated by using a 1 1/2x rate of pay – minimum- of that employee’s normal working hours rate
- or calculated at a normal (1x) rate of pay, with additional 30 minutes off for every hour worked overtime ( this must be granted within 1 month)
- OR if money is not paid for overtime, 90 minutes time off for every 1 hour worked overtime may be granted
Once they have worked a number of overtime shifts, they must receive their overtime payment within 1 month of the shifts. However, overtime payment may be delayed for up to 12 months after the work, by PRIOR, MUTUAL agreement between employer and employee.
Sunday Overtimes policies and regulations explained: A comprehensive guide on how to calculate and manage Sunday work hours.
- If Sunday is not a normal working day, then overtime is calculated using the double time (2x) rate of an employee’s normal working hour rate. OR an employee may be given time off during normal working hours.
- If a Sunday is a normal working day in their shift roster, then they may be paid a rate of 1 1/2 x their normal hour rate.
- If the majority of the shift does NOT fall on a Sunday, no additional payment is required.
Public Holiday Pay Policies: A clear understanding of employee compensation for holiday work hours.
- If an employee works on a Public holiday, it must be voluntary. An employer may not force them to work a Public holiday shift , unless agreed to by prior arrangement, or by collective bargaining agreement.
- If they choose to work on a Public holiday, then payment must be;
– calculated (at minimum) 2x the normal working hourly rate (and if additional hours are worked on a Public holiday, these are also paid 2x the normal hourly working rate). - NOTE: All Public holidays are PAID holidays. Even if the employee does not work on the Public holiday, they must be paid their normal hourly rate.
- If the employee does work on a Public Holiday, they must be paid their normal daily salary, PLUS their hourly rate of the hours worked.
- If the majority of the shift does not fall on a Public holiday, no additional payment is required.
Secondary guidelines for the “Compressed work week” and the averaging of hours worked.
An agreement in writing to work up to 12 hours a day ( including a meal break) without paying overtime IF
- You abide by the “not more than 45 hours working rule”
- You do not allow the employee to work more than 10 hours overtime per week
- You do not allow them to work more than 5 days a week
Averaging of Working Hours: Explaining the 4-month agreement for work hours and overtime compensation.
If agreed to by collective bargaining, working hours may be AVERAGED over a 4 month period. This agreement lapses after 12 months.
This means an employee may work an average of 45 hours a week over 4 months ( calculated at 4.33 weeks per month), and an average of 5 hours of overtime per week.
EXAMPLE: an employee may work 50 hours in week 1, then 40 hours in weeks 2 & 3, and 50 hours in week 4. This adds up to 180 hours worked (180 divided by 4) equals 45 hours worked a week, on average. So no overtime is paid.
Are you still unsure of some of the aforementioned guidelines? If so, you are welcome to contact our helpdesk, who will be happy to clarify any uncertainties that you may have.
