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Global Work Glossary

Lost in a maze of global employment jargon? Find your way out with our handy collection of work and HR terminology

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Overtime Rules

What are overtime rules?

Overtime rules are regulations and laws that govern the time employees spend working outside of their usual working hours. This includes rules around payment policies, overtime rates, and the number of extra hours employees can legally work in a week. These regulations are designed to ensure fair compensation for additional work hours and a healthy work-life balance for employees.

Overtime rules differ from country to country and, in the United States, often from state to state as well. For example, in South Korea, most employees must receive overtime pay when they work more than 40 hours a week, at a rate equivalent to one and a half times their regular rates of pay. In India, on the other hand, overtime pay of double the usual rate is required when employees work over 48 hours a week.

It’s the responsibility of every organization to familiarize themselves with and adhere to overtime rules in the countries where their employees live and work. To streamline this process, it’s best to use a global HR solution such as Multiplier, which automatically calculates overtime rates and notifies you of relevant regulation changes.

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