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 [email protected].
Key contacts
Samantha Brown
Managing Partner, Employment, Pensions and Incentives, UK and EMEA, London
Steve Bell
Managing Partner, Employment, Industrial Relations and Safety, Asia and Australia, Melbourne
Emma Rohsler
Partner, Head of Employment, Pensions and Incentives, EMEA, Paris
Tim Leaver
Partner, London
Andrew Taggart
Partner, London
Fatim Jumabhoy
Partner, Head of Employment & Workplace Investigations, Asia, Singapore
Barbara Roth
Partner, New York
Christine Young
Partner, London
Disclaimer
Herbert Smith Freehills Kramer LLP and Prolegis LLC have established a Formal Law Alliance licensed by the Legal Services Regulatory Authority of Singapore known as Herbert Smith Freehills Kramer Prolegis Alliance, with Singapore law advice provided by Prolegis LLC. The two firms cooperate closely in Singapore to deliver a complementary and seamless legal service.