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.
| Country | Can employers agree to give time off in lieu instead of paying overtime? |
| Sinagpore |
No for Employment Act (EA)-covered employees; yes for non-EA covered employees so long as there is a contractual entitlement. |
| Malaysia |
No for Employment Act (EA)-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 more information on this issue, please contact Fatim Jumabhoy at fatim.jumabhoy@hsf.com.
Key contacts
Steve Bell
Managing Partner - Employment, Industrial Relations and Safety (Australia, Asia), Melbourne
Emma Rohsler
Regional Head of Practice (EMEA) - Employment Pensions and Incentives, Paris
Disclaimer
Herbert Smith Freehills LLP has a Formal Law Alliance (FLA) with Singapore law firm Prolegis LLC, which provides clients with access to Singapore law advice from Prolegis. The FLA in the name of Herbert Smith Freehills Prolegis allows the two firms to deliver a complementary and seamless legal service.