Can Part-Time Employees Get Overtime in Malaysia?

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Can part-time employees get overtime? If yes, how many hours is part-time? This question often arises when discussing the rights and benefits of part-time workers. While there may be some differences between full-time and part-time employment arrangements, it’s essential to understand the entitlements and limitations that come with being a part-time employee.

In this article, we will delve into the world of part-time employment, explore whether part-time employees are eligible for overtime, and shed light on the benefits of hiring part-time workers. Let’s find out below!

What is a Part-Time Employee?

the Fair Labor Standards Act (FLSA) sets labor standards

A part-time employee is an individual who works fewer hours than a full-time employee. While the specific definition may vary across different jurisdictions and companies, part-time employment generally involves working less than the standard 40 hours in a week that is typically associated with full-time positions or working between 30% to 70% of the normal working hours of a full-time employee.

In general, part-time hours work arrangements are often chosen by individuals who desire flexibility in their work schedules or who have other commitments outside of work that they need to attend to.

A part-time employee may work a set number of hours per day or per week, but their total working hours are less than what is considered full-time or normal hours of work. In addition, normal hours of work means the number of hours of work as agreed between an employer and an employee in the employment contract.

The exact number of hours can vary depending on the company’s policies and industry norms. Some the employee may work a few hours per day, while others may work several days a week, accumulating a total of fewer hours compared to their full-time counterparts.

It is worth noting that a part-time employee should be treated fairly and without discrimination in the workplace. They should have access to the same basic employment rights, such as minimum wage, safe working conditions, and protection against unfair treatment or harassment.

Employers should ensure that part-time employees are aware of their rights and that they are provided with equal opportunities for training, career development, and advancement within the company.

Read more: The Importance of Employee Engagement for Business

Can Part-Time Employees Get Overtime in Malaysia?

Can part-time employees get overtime? Well, as subsidiary legislation made pursuant to the Employment Act 1955, part-time employees are also covered under the main Employment Act. As such, part-time employees are entitled to many of the same benefits that full-time employees enjoy, such as minimum wages, leave, and overtime—although at reduced rates.

Read more: 11 Factors to Consider When Scheduling Staff

Part-Time Employees Benefits

A part-time employee may have different benefits compared to their full-time counterparts. While the entitlements may vary depending on the jurisdiction and the employer, here are some common benefits that part-time employees can enjoy:

1. Sick Leave

Part-time employees, including those working on a casual basis, are entitled to sick leave. The number of sick leave days may vary depending on the respective country’s labour laws. It is crucial for both employers and employees to familiarise themselves with the applicable regulations to ensure compliance and fair treatment.

2. Annual Leave

Just like their full-time counterparts, part-time employees are eligible for annual leave. However, the number of annual leave days is typically prorated based on the number of hours worked. For example, if a full-time employee is entitled to 20 days of annual leave, a part-time employee working half the hours may be entitled to 10 days.

3. Overtime

While part-time employees can receive overtime pay, it is important to note that the rates are often different from those of full-time employees. Overtime rates for part-time employees are generally calculated based on their regular hourly rate rather than the full-time employee’s rate. This reduced rate acknowledges the reduced hours worked by part-time employees.

4. Others

Part-time employees may also be entitled to other benefits such as public holiday pay, maternity/paternity leave, and retirement benefits. The specific entitlements may vary depending on local labour laws and the policies implemented by individual organisations.

Read more: 8 Staff Schedule Management Tips for Business Owners

Advantages of Hiring Part-Time Employees

Part-time employment offers several advantages for organisations seeking a flexible and efficient workforce. By harnessing the benefits of hiring part-time employees, businesses can adapt to changing demands, reduce costs, and tap into diverse skill sets. Let’s explore these advantages in more detail.

1. Flexibility

One of the key advantages of hiring part-time employees is the flexibility they bring to the workforce. Organisations can scale their workforce up or down based on demand, without committing to full-time positions. This flexibility allows businesses to manage their resources and respond to fluctuations in workload efficiently.

2. Cost-Effectiveness

Hiring part-time employees can be a cost-effective solution for businesses, especially during periods of peak demand. Part-time employees often earn lower wages compared to full-time employees, resulting in reduced labour costs for organisations. Additionally, businesses can save on benefits such as healthcare and retirement plans.

3. Expertise and Diversity

Part-time employees can contribute diverse skill sets and expertise to the organisation. Many part-time employees have experience in specific industries or possess unique talents that can add value to the team. Their fresh perspectives and varied backgrounds can foster creativity and innovation within the workplace.

4. Work-Life Balance

For individuals seeking work-life balance or juggling multiple commitments, part-time employment offers an attractive option. It allows employees to pursue personal interests, take care of family responsibilities, or engage in other endeavours outside of work. This flexibility often leads to higher job satisfaction and employee retention.

5. Trial Periods

Part-time positions can serve as trial periods for both employees and employers. It allows organisations to assess the performance and fit of employees before considering full-time employment. Similarly, part-time employees can evaluate the company culture, work environment, and job responsibilities to determine if it aligns with their expectations and career goals.

Read more: 10 Critical Employee Scheduling Problems and How to Solve Them

6. Employee Loyalty

When organisations provide fair treatment and opportunities for growth, part-time employees may develop a sense of loyalty towards the company. This loyalty can lead to long-term relationships and future opportunities for both parties. Retaining skilled and dedicated part-time employees can provide stability and continuity for businesses.

7. Workforce Diversity

Hiring part-time employees can contribute to a diverse workforce in terms of age, gender, background, and experience. This diversity fosters inclusivity and brings together individuals with different perspectives and ideas. A diverse workforce can enhance creativity, problem-solving abilities, and overall productivity within an organisation.

Read more: Understanding Manpower Planning and Its Importance in F&B

8. Skill Development

Part-time employment can offer valuable opportunities for skill development and career advancement. Employees can acquire new skills, expand their professional network, and gain industry experience through part-time positions. These experiences can open doors to future full-time employment or entrepreneurial ventures.

So, can part-time employees get overtime? Part-time employees are entitled to overtime pay, albeit at reduced rates. Understanding the rights and benefits of part-time employees is crucial for both employers and employees to ensure fair treatment and compliance with labour laws.

Streamline your Overtime Pay Calculations with Overtime Calculator

If you’re a business owner in Malaysia looking to calculate overtime accurately for your part-time employees, consider utilising StaffAny’s overtime calculator in Malaysia. By using this tool, you can effortlessly determine the overtime entitlements for your part-time workforce while ensuring compliance with regulations. 

Stay informed, stay fair, and leverage tools like StaffAny’s overtime calculator to ensure that part-time employees receive their entitled overtime pay!

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