Policy - Bonus & Overtime
Section: Human Resource Policies
Policy Owner: Ignition633 Ministries Nigeria Human Resources
Policy Name: Bonus & Overtime Policy
Origination Date: January 2025
Purpose
This policy establishes clear and consistent guidelines for compensating employees for overtime and bonus payments. It ensures compliance with Nigerian labor laws and aligns with the organization's commitment to fair and equitable compensation for additional work performed beyond regular working hours or during public holidays.
Scope
This policy applies to all Thousand Hills Empowerment Foundation (THEF) employees and 633 Enterprises who are eligible for overtime compensation and bonuses based on their roles and employment contracts. It outlines the procedures, rates, and conditions under which overtime and bonus payments are granted.
Definitions
Weekly Rest Days: After six continuous working days, employees are entitled to one weekly rest day. These days are fully paid, and employees are not required to work on them.
If employees must work on their weekly rest day, they are entitled to either a compensatory day off or overtime pay.
Public Holidays: Public holidays are designated work-free days under the Nigerian Public Holidays Act 1979. Employees required to work on public holidays will receive the applicable bonus compensation.
- If a public holiday falls on a weekly rest day (e.g., a weekend), the organization reserves the right to decide whether employees will be granted an additional day off.
Floating Holidays: The organization observes flexible practices for Muslim holidays (e.g., Id el Fitr, Id el Kabir, Id el Maulud), which are determined by moon sightings. Employees may request compensatory time off equal to the duration of these holidays. However, the time off must be taken within the same period as the holiday (this could be within the same week or month of the holiday or, at least, a month after); it cannot be taken weeks before or months after. The employee's supervisor must approve all requests for compensatory time off.
Policy Statement
General Overtime Compensation
- Employees are entitled to overtime compensation when they work beyond their regular hours as stipulated in their employment contracts.
- Overtime must be pre-authorized by a supervisor or promptly authorized by a Director after work is completed. Unauthorized overtime will only be compensated if explicitly approved by the organization.
Overtime Rates
Half-Time Overtime
Employees working up to 1 hour beyond their regular work time will receive overtime compensation at half the daily rate.
Calculation: Half the daily rate is N1,750 for the base pay of N70,000.
Full-Time Overtime
Employees working up to and more than 4 hours beyond their regular work hours will receive full-time overtime compensation.
Calculation: The full daily rate is N3,500 for the base pay of N70,000.
Bonus Compensation
Employees required to work during festive breaks (e.g., Christmas, New Year, Workers' Day) and other fixed public holidays are entitled to a bonus payment that is double the overtime rates for both half-time and full-time work:
Half-Time Bonus: N3,500
Full-Time Bonus: N7,000
Supervisors must notify employees in advance if they are required to work on public holidays. Employees will be informed as soon as possible in emergencies or last-minute requirements.
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This policy will be reviewed annually and is subject to change. Any changes will be communicated to all employees promptly.
For any questions or further assistance regarding this policy, employees should contact the HR department at hr.nigeria@ignition633.org.