Overtime recording policy template
A free, ready-to-edit overtime recording policy template for Australian workplaces. Set clear rules for pre-approving, recording and paying overtime — including time off in lieu (TOIL) — so hours are captured accurately and you stay compliant with Fair Work record-keeping. No signup required.
Overtime recording policy
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By downloading, you agree to our template disclaimer
This overtime recording policy template reflects Australian workplace and Fair Work record-keeping standards at the time of publication and is provided as a general guide to adapt for your business, award or enterprise agreement. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Why your business needs an overtime recording policy
Overtime is one of the easiest costs to lose control of — and one of the easiest ways to end up underpaying staff. When overtime is worked without approval or captured inconsistently, you face unexpected labour costs, payroll disputes and the risk of underpayment claims. A clear overtime recording policy fixes this by setting out exactly how overtime is requested, approved, recorded and paid.
The policy explains what counts as overtime under your award or agreement, when pre-approval is required, and how hours are logged against ordinary hours. It pairs naturally with your timesheet approval policy and unauthorised overtime policy to give managers a consistent framework.
Under the Fair Work Act, employers must keep accurate records of the hours an employee works, including overtime, and retain them for seven years. Capturing overtime in time and attendance software — and feeding approved hours straight into payroll — means the right rates are applied automatically and you can show every hour was authorised and recorded.
What an overtime recording policy should cover
The essentials of capturing and approving overtime correctly
Overtime definition
What counts as overtime under your award, agreement or standard hours (e.g. beyond 38 per week).
Pre-approval process
How employees request overtime in writing and who must authorise it before it is worked.
Recording requirements
How exact start, finish and break times are logged, separate from ordinary hours.
Payment & rates
How overtime is calculated and paid at the rates set by the relevant modern award.
Time off in lieu (TOIL)
When TOIL can replace overtime pay and how both the hours and the leave are recorded.
Record-keeping & compliance
Retaining accurate records to meet Fair Work obligations and support payroll.
What's included in this template
A complete framework for authorising, recording and paying overtime
Purpose & scope
Why the policy exists and which employees and roles it applies to.
Overtime definition
What counts as overtime under awards, agreements or standard hours.
Pre-approval requirements
Written request and authorisation before overtime is worked.
Approval authority
Who can approve overtime and under what circumstances.
Recording procedures
How overtime is captured in timesheets with exact times and reasons.
Documentation requirements
The evidence needed to support and verify overtime claims.
Payment processing
How overtime is calculated and paid at award rates.
Time off in lieu (TOIL)
Optional TOIL arrangements and how they are agreed and tracked.
Reasonable additional hours
Limits and the right to refuse unreasonable overtime under the NES.
Non-compliance & acknowledgement
Consequences of unapproved overtime and employee sign-off.
Recording and approving overtime correctly
Get the process right and overtime stays controlled, compliant and correctly paid
Pre-approve overtime in writing
The clearest policies require overtime to be requested and approved before it is worked, with a short written note of the task and expected hours. This keeps costs predictable and stops disputes. Pair it with your unauthorised overtime policy so everyone knows what happens when overtime is worked without approval.
Direction or knowledge still means pay
Pre-approval controls cost, but it doesn’t override the law: where an employee works overtime at the employer’s direction, or with the employer’s knowledge, those hours must be paid even without formal sign-off. Make this clear so the policy is fair and defensible.
How overtime should be recorded and approved
Request & approve
Employee submits a written request; an authorised manager approves it before the hours are worked.
Record exact times
Log actual start, finish and break times, kept separate from ordinary hours.
Verify & approve
The manager checks the recorded overtime against the approval before payroll.
Pay or bank as TOIL
Apply the correct award overtime rate, or record agreed time off in lieu.
Digital timesheets make this far simpler: employees clock exact times, overtime is flagged automatically, and approved hours flow into payroll at the right rate. See how to implement digital clock-in and track employee hours accurately.
Overtime rates and TOIL rules vary by modern award and enterprise agreement, so always check the instrument that applies to your team before setting rates. Employers must keep accurate records of all hours worked — including overtime — for seven years. Understanding how to calculate overtime costs also helps you budget rosters and spot when persistent overtime signals a staffing or scheduling problem. The Fair Work Ombudsman provides authoritative guidance on record-keeping and hours of work.
Who should use this template?
Essential for any Australian business where staff work overtime
Especially valuable for managers and payroll teams who authorise and process overtime each pay cycle.
Compliance resources
Official Fair Work guidance on overtime, hours of work and record-keeping.
Capture and pay overtime automatically
RosterElf records exact clock-in and clock-out times, flags overtime against the roster, captures approvals and feeds the right rates straight into payroll — so every authorised hour is recorded and paid correctly.
Related guides
Record, approve and cost overtime the right way
Related templates
Build a complete time & attendance framework
Overtime recording policy FAQ
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An overtime recording policy is a document that sets out how a business defines, requests, approves, records and pays overtime. It explains what counts as overtime under the relevant award or agreement, who can authorise it, how hours are captured in timesheets, and how time off in lieu (TOIL) is handled — so overtime is consistent, compliant and correctly paid.
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Yes. The template gives you a solid foundation, but you should tailor it to your own time-recording systems, pay cycles and the specific modern award or enterprise agreement that applies to your team. Overtime rates and TOIL rules differ between instruments, so always check the one covering your employees.
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Share it during onboarding for new starters and by email or team meeting for existing staff, then have employees sign an acknowledgement. Storing the policy and capturing acknowledgements in HR software gives you an audit trail showing everyone has read and understood it.
Before you download
General information only — not legal advice
This document is a general HR template provided for informational purposes only. It is not legal advice and may not reflect the latest changes in legislation or apply to every workplace situation. RosterElf Pty Ltd and the template provider accept no liability for any loss arising from reliance on this document. Users should seek independent legal advice and customise the template to ensure it complies with all relevant laws, awards and workplace requirements.