Common use of Time Off Instead of Payment for Overtime Clause in Contracts

Time Off Instead of Payment for Overtime. By mutual agreement, an Employee may be compensated by way of time off instead of payment of overtime (time for time) on the following basis: (a) Time off instead of payment of overtime must be equivalent to the overtime payment that would have been made to the Employee and taken within 4 months of being accrued. (b) Where it is not possible for an Employee to take the time off, instead of payment for overtime, within the 4-month period, it is to be paid out at the appropriate overtime rate based on the rates of pay applying at the time payment is made. These provisions will also apply on termination of employment.

Time Off Instead of Payment for Overtime. By mutual agreement, an Employee may be compensated by way of time off instead of payment of overtime (time for time) on the following basis: (a) Time off instead of payment of overtime must be equivalent to the overtime payment that would have been made to the Employee and taken within 4 three months of being accrued. (b) Where it is not possible for an Employee to take the time off, instead of payment for overtime, within the 4-three month period, it is to be paid out at the appropriate overtime rate based on the rates of pay applying at the time payment is made. These provisions will also apply on termination of employment. (c) An Employee cannot be compelled to take time off instead of overtime.