In this article we will talk about:
- Holidays throughout the year and overtime
- Compulsory overtime accounting
- How to calculate and pay overtime on holidays
- Example of overtime for an employee who worked on Christmas
- Calculate overtime for the holidays
We are heading towards Carnival and if you have or work for a company, it is very likely that you will need to work some overtime during that period. Before understanding the calculation of overtime on holidays, it is also worth seeking a more complete view on the topic. See the article How to calculate overtime.
The truth is that we almost always have more work than time to carry out our daily activities. This reality ranges from the consultancy that needs to close or forward the largest number of projects before the collective holidays, the end of the year and carnival holidays to the stores, shops and the hotel / tourism sector, which are open as much of the time as possible to serve customers willing to buy and, consequently, to have an increase in sales at that time.
Regardless of the situation in which you find yourself, it will most likely be necessary to work overtime or charge someone to do it, and I don't know if you know, but it is mandatory to pay overtime in a different way.
To begin with, although not mandatory in all cases (only in companies with more than 10 employees), I highly recommend that you have a overtime calculation spreadsheet, so that you can protect yourself in possible future labor lawsuits and always have a record of the actual workday performed by your employees.
Basically, with the spreadsheet it is possible to issue a report of time sheet with the employee's hours worked monthly exactly as in the image shown below:
After that, just make sure that he signs one way for the company and another for him to have as record of the hours worked that you can be avoiding many headaches in the processes and confusion of who is right or not.
Knowing this importance of control, we can move on to the next point, which is the understanding of how to calculate and pay overtime on holidays. We have already written two very nice posts on the subject. A first that sums up how to calculate overtime in excel and another with a deepening in how to use time bankIt is possible to use both overtime worksheet.
It is important to understand that it will exist in some cases where the employee works:
- more than the agreed daily journey
- in the intrajornada period (lunch / rest time)
- in the interjornada period (before completing 12 hours between shifts)
- (between 22h and 5h)
- on holidays and non-working days
In addition to having this understanding, you need to know that the amount of overtime on weekdays is usually 50% on the amount of your already paid time and 100% on weekends and holidays. Therefore, the overtime is worth more than the normal working hour. This table below may help you:
If the hourly amount paid to an employee is $ 10, then his overtime will be worth $ 15 on weekdays and Saturdays and $ 20 on Sundays and holidays.
To make it extremely clear what your obligations are, let's look at a practical example of how the overtime calculation for year-end holidays might be. The example of hours worked below refers to the month of December in our overtime worksheet. Note that I considered 24, 25, and 31 days as holidays.
In our scenario, the employee worked exactly the agreed time every day of the month and did overtime on the 3 Christmas and New Year holidays and also on the 26 and 27 weekend. Note that it is a total of 8 overtime, of which:
- 8 hours on a Saturday
- 8 hours on a Sunday
- 24 hours on holidays
This leads to a very simple calculation of overtime. Assuming that the hour value of this employee was $ 10, then we would have:
- Overtime value on Saturday: 8 x R $ 15 = R $ 120
- Overtime value on Saturday: 8 x R $ 20 = R $ 160
- Overtime value on Saturday: 24 x R $ 20 = R $ 480
- Total amount of overtime = R $ 120 + R $ 160 + R $ 480 - R $ 760
Below is a summary of the overtime that is automatically calculated in our worksheet:
See how easy it can be to do the overtime bills on year-end holidays? THE spreadsheet for overtime calculation it works both if you are an employer and want to have correct control by the end of the year, as if you are an employee you want to control your hours correctly (without depending on anyone).