Does overtime contribute to leave entitlements?
When employees work over the regular hours outlined in their employee agreement, they are working ‘overtime’. The employee agreement should also outline whether they will be paid a different rate for overtime hours. In New Zealand, employers are under no legal obligation to pay them more than their regular rate for any overtime hours. However, employers can choose to do so. For example, any extra time an employee may work on a weekend could be paid at time-and-a-half.
In PayHero, employers can set up a Pay Item for overtime, plus a corresponding Work type that is linked to that Pay Item. Employees can then record their time against this Work and will be paid according to the rate set on the Pay Items.