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Unauthorised overtime policy template

Clear guidelines for managing overtime worked without prior approval. Covers consequences, payment obligations, exceptions and compliance considerations — aligned with Australian workplace laws.

Unauthorised overtime policy

PDF format • Ready to download

Covers unauthorised overtime procedures
Includes payment and legal considerations
Addresses consequences and exceptions
Ready to customise for your business

By downloading, you agree to our template disclaimer

Employee working late

Why an unauthorised overtime policy matters

Unauthorised overtime can quickly blow out labour costs and create compliance headaches. A clear policy establishes expectations that overtime must be pre-approved, while addressing how unapproved work is handled.

Under Australian law, employers generally must pay for all hours worked, even if not authorised. However, you can discipline employees who breach overtime approval requirements. This policy balances cost control with legal compliance.

Without clear guidelines, managers may treat unapproved overtime inconsistently, creating fairness issues and encouraging employees to work unapproved hours.

Key elements of an unauthorised overtime policy

What your unauthorised overtime policy should include

Definition

What constitutes unauthorised overtime in your workplace.

Pre-approval requirements

How employees must obtain approval before working extra hours.

Consequences

What happens when overtime is worked without authorisation.

Payment obligations

How unapproved overtime is handled for payroll purposes.

Legal considerations

Balancing business needs with Fair Work obligations.

Emergency exceptions

When unapproved overtime may be acceptable.

What's included in this template

Comprehensive coverage of unauthorised overtime requirements

Purpose & scope

Why the policy exists and who it applies to.

Policy statement

The organisation's position on unauthorised overtime.

Definition of unauthorised overtime

What counts as overtime worked without approval.

Pre-approval requirements

Process for obtaining overtime authorisation.

Manager responsibilities

Obligations for controlling overtime.

Payment of unauthorised overtime

How unapproved hours are handled.

Emergency and exceptional circumstances

When unapproved overtime may be acceptable.

Progressive consequences

Disciplinary approach for repeated breaches.

Record keeping

Documentation of unauthorised overtime incidents.

Fair Work considerations

Legal obligations for payment of hours worked.

Who should use this template?

Essential for businesses needing to control overtime costs

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.

Employers generally must pay for hours worked even if not authorised. You should seek independent legal or HR advice on how to handle unauthorised overtime in your specific circumstances.

Regulatory sources

This template is aligned with Australian workplace record-keeping requirements.

Ready to control overtime costs?

Download our comprehensive unauthorised overtime policy template and establish clear expectations.

Store this policy and track employee acknowledgements with RosterElf's HR software.

Looking for more templates? Browse all time & attendance templates

FAQ

Unauthorised overtime policy FAQ

  • If an employee works overtime and the employer knows or should know about it, the time must be paid. However, working without authorisation may be a policy breach warranting disciplinary action. You cannot withhold pay for hours worked.
  • Require pre-approval for overtime, use time systems that flag excessive hours, train managers to monitor and address patterns, ensure workloads are manageable within ordinary hours, and act on breaches consistently. Learn how to track employee hours effectively.
  • Yes, if your policy clearly requires pre-approval. However, ensure employees are not being implicitly pressured to work extra hours. If workloads regularly require overtime, address the root cause rather than blaming employees. Understand employee discipline best practices.
  • 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.