Question

Dear HR Professionals,

I would like to seek advice with regard to overtime pay. As there is a capped off 72 hours of overtime per month. And for time being, we do not have/apply for OT Exemption. Therefore, I would like to ask:

1)  If the employee had worked exceeded the 72 hours for that month. Can I bring forward the extra OT to next month?

2)  If so, will there be any breach with MOM?

3)  Do I need to issue any letter to employee to inform them about the changes?

Thank you

Ho

Reply 1

The company would have breached compliance:

1. OT paid out beyond the 14 days from last salary period

2. OT exceeded 72 hours per month. However, it may be accepted if this is the only case and an exception.

3. Under the CPF Act, if applicable, the delayed OT payment must be computed as, ‘Additional Wages’. Or else, the risk of administrative infringement.

Henri

Reply 2

Cannot that’s illegal. You can not “bring forward” the overtime.

If really need to exceed, then do seek exemption.

Chris

Reply 3

Without OT exemption, it is a regulatory breach for an employee to work more than 72 hours of OT a month. The employer is not allowed to carry forward the extra OT hours to the following month.

KS