Overtime:
o It is any working hour in addition to the regular hour limit. In countries where legislation sets the limit below 48 hours per week (e.g. 40 hours), any additional working hour is considered overtime
o It must be paid in a premium rate
Most countries’ legislations define:
o Temporary exceptions allow additional working hours (e.g. force majeure, accident risks or actual and urgent work to be done to machinery)
o Overtime limits (e.g. maximum 3 hours per day)
o Premium rate that applies to overtime (e.g. 25% more than a regular working hour)
o Type of working processes, which due to their nature, must be done in continuous shifts and national law allows a permanent exception (e.g. national law allows 2 shifts of 12 hours per day instead of 3 shifts of 8 hours per day)
The auditee must be aware of the regulation that applies to its industry.
Written procedure: The auditee puts into practice a procedure to deal with overtime, particularly with regard to temporary exceptions. This procedure:
o Originates in an agreement between the workers representative and the auditee
o Sets the daily limits of work over the exceptional period
o Sets the premium rate paid by the auditee
o Respects any other criteria defined by law
Legal exceptions: If the auditee belongs to a type of industry covered by a legal permanent exception, the auditee must keep updated documentary proof of the agreement that describes the legal exception.
This agreement must have force of law and define:
o Type of exceptions
o Categories of affected workers
o The maximum additional working hours in each case
o The premium rate for overtime: at least 25% more than the regular rate
Additional comments about overtime:
o Voluntary: It needs to be voluntarily agreed, unless in cases of temporary exceptions (e.g. force majeure) which must be described in the employment contract
o Exceptional: It needs to be exceptional. Overtime cannot be repeatedly added onto regular working hours
o No adding risks: It needs to be set without increasing the risk to workers’ health and safety
o Premium paid: It is paid in a premium rate as defined by the law. Overtime occurring during official holidays and/or Sundays may have a higher premium rate to pay
o It takes into consideration:
* The vulnerability of temporary workers, migrant workers and piece rate workers to do too much overtime
* The accumulation of fatigue related to shifts
* Special protection for young workers, pregnant women and night workers
Corrective measures: Certain measures can be implemented to reduce excessive overtime:
o New technologies to improve production efficiency
o New production techniques
o More skilled and qualified workers
o Improvement in logistics (e.g. coordination and planning)
o A proper discussion with clients on delivery time expectations
All these aspects of overtime also apply for agricultural undertakings including if the auditee is a cooperative.