Overtime recording policy template
Clear guidelines for recording and approving overtime hours. Covers pre-approval requirements, documentation, payment processing and compliance — aligned with Australian workplace laws.
Overtime recording policy
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Why overtime recording matters
Accurate overtime recording is essential for correct payroll, cost control and compliance. When overtime is properly captured and approved, you ensure employees are paid correctly at the right rates.
Without clear overtime recording procedures, businesses face unexpected labour costs, payroll disputes and potential underpayment claims. A documented policy establishes approval processes and recording requirements.
This policy also helps manage reasonable additional hours under the Fair Work Act and ensures overtime is authorised and documented consistently.
Key elements of an overtime recording policy
What your overtime recording policy should include
Overtime definition
What constitutes overtime under your award or agreement.
Recording requirements
How overtime hours must be captured and documented.
Pre-approval process
Requirements for obtaining approval before working overtime.
Payment rates
How overtime is compensated under applicable awards.
Authorisation levels
Who can approve overtime and under what circumstances.
Award compliance
Alignment with overtime provisions in modern awards.
What's included in this template
Comprehensive coverage of overtime recording requirements
Purpose & scope
Why the policy exists and who it applies to.
Policy statement
The organisation's approach to overtime recording.
Overtime definition
What counts as overtime under awards.
Pre-approval requirements
Process for authorising overtime before it is worked.
Recording procedures
How overtime is captured in timesheets.
Documentation requirements
Evidence needed to support overtime claims.
Approval authority
Who can authorise overtime work.
Payment processing
How overtime is calculated and paid.
Limits and restrictions
Maximum overtime and reasonable hours provisions.
Non-compliance
Consequences of unapproved overtime.
Who should use this template?
Essential for businesses where overtime occurs
Legal disclaimer
This template is designed to reflect Australian workplace standards at the time of publication. It is provided as a general guide only and does not constitute legal advice.
Overtime provisions vary by award, enterprise agreement and employment contract. You should review and tailor this template to suit your specific circumstances. Seek independent legal or HR advice to support compliance.
Regulatory sources
This template is aligned with Australian workplace record-keeping requirements.
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Overtime recording policy FAQ
- Yes. This template provides a solid foundation, but you should tailor it to reflect your specific time recording systems, pay cycles, and any applicable modern award or enterprise agreement requirements.
- Distribute the policy during onboarding for new employees and via email or team meetings for existing staff. Have employees sign an acknowledgement form. Using time and attendance software can help automate compliance and reminders.
- This depends on your policy. Many organisations require pre-approval for planned overtime. However, employees who work overtime at the employer's direction or with their knowledge must be paid, even without formal approval. Learn more about calculating overtime costs.
- Overtime should be recorded separately from ordinary hours, showing the date, start/finish times, and reason. This ensures correct payment of overtime rates and helps identify patterns that may indicate rostering or staffing issues. See our guide on how to track employee hours.
- Time Off In Lieu (TOIL) allows employees to take paid time off instead of receiving overtime payment. TOIL arrangements must comply with the relevant award. Record both the overtime worked and the TOIL taken.
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Disclaimer
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.