Arbitration of Overtime Pay Calculations in China

Introduction

Overtime pay is a legal entitlement for employees who work beyond the statutory work hours. In China, the calculation of overtime pay is governed by the Labour Law and its implementing regulations. Arbitration is a common method for resolving disputes over overtime pay calculations.

Statutory Work Hours and Overtime

The Labour Law of China sets the standard work hours at 8 hours per day and 40 hours per week. Overtime is defined as any work performed beyond these statutory hours.

Overtime Pay Calculation

According to Article 51 of the Labour Law, employees should be paid overtime pay at a rate of 150% of their regular hourly wage for work performed on regular workdays and 200% of their regular hourly wage for work performed on rest days and national holidays.

Arbitration of Overtime Pay Disputes

When an employee believes that their overtime pay has been calculated incorrectly, they can file an arbitration claim. Arbitration is a process of resolving disputes outside of the court system, typically involving a neutral third-party arbitrator who hears both sides of the case and makes a binding decision.

Evidence in Arbitration

In an arbitration over overtime pay, the employee must present evidence to support their claim. This may include:

Payslips Time records Witness statements Company policies

Burden of Proof

The burden of proof in an overtime pay arbitration lies with the employee. This means that the employee must provide sufficient evidence to demonstrate that their overtime pay was calculated incorrectly.

Factors Considered by Arbitrators

When considering an overtime pay dispute, arbitrators will typically take into account the following factors:

The definition of "overtime" in the applicable laws and regulations The company's policies and procedures for calculating overtime pay The employee's actual work hours Any relevant agreements between the employee and the employer

Arbitration Award

If the arbitrator finds that the employee's overtime pay was calculated incorrectly, they will issue an award ordering the employer to pay the employee the correct amount of overtime pay. The award may also include compensation for any other losses or damages suffered by the employee as a result of the improper overtime pay calculation.

Conclusion

Arbitration is a valuable tool for employees who believe that their overtime pay has been calculated incorrectly. By following the correct procedures and presenting sufficient evidence, employees can seek to recover the overtime pay that they are entitled to under the law.