29 November, 2016
A recent trend in relation to overtime is for employers to grant time off in lieu instead of paying overtime. This can be confusing in Asia as the ability of employers to do so varies from jurisdiction to jurisdiction. This month we consider the position in Singapore, Malaysia, Indonesia, China, Japan, South Korea and Thailand.
CAN EMPLOYERS AGREE TO PROVIDE TIME OFF IN LIEU INSTEAD OF PAYING OVERTIME?
SINGAPORE
No for Employment Act ( E A)-covered employees; yes for non-EA covered employees so long as there is a contractual entitlement.
MALAYSIA
No for Employment Act ( E A)-covered employees; yes for non-EA covered employees so long as there is a contractual entitlement.
INDONESIA
No.
CHINA
Yes for work on rest days or weekends. JAPAN Yes if this is provided for in the company's work rules.
SOUTH KOREA
Yes, subject to the terms of the written agreement with the employee representative or majority union.
THAILAND
No.
For further information, please contact:
Fatim Jumabhoy, Of Counsel, Herbert Smith Freehills LLP
fatim.jumabhoy@hsf.com
