Case Scenario

Chen, a student, works part-time at a beverage shop. He is paid hourly at NT$200 per hour. His schedule is irregular — he works about two to three days per week, and his daily working hours vary.

Recently, Chen has had questions about how his wages were calculated:

Case Explanation and Legal Analysis

The main purpose of this case is to clarify how normal working hours and extended working hours (overtime) are defined for hourly employees, and how overtime pay should be calculated.

1. Definition of Normal Working Hours and Overtime Pay

• Normal working hours:
  Even though Chen is a part-time worker, as long as the agreed daily working hours do not exceed 8 hours, any work beyond 8 hours is considered overtime, for which the employer must pay an overtime premium.
• Legal overtime pay rates (per Article 24 of the Labor Standards Act):
• The first 2 hours of overtime: paid at 1.34× the regular hourly rate.
• From the 3rd hour onward: paid at 1.67× the regular hourly rate.

2. Case 2: Scheduled 6 Hours + Worked 8 Hours

• Actual working time: 8 hours
• Wage structure: All 8 hours are treated as regular working hours.
• Legal interpretation:
  Even if the scheduled shift was 6 hours, as long as the total working time does not exceed 8 hours, all hours are considered regular working hours.
  Therefore, payment of 8 × 200 = NT$1,600 is correct and lawful.

Overtime is determined based on whether daily working time exceeds 8 hours, not whether it exceeds the scheduled shift.

3. Case 3: Scheduled 8 Hours + Worked 10 Hours

• Actual working time: 10 hours (8 regular + 2 overtime)
• Employer paid: NT$2,150

Correct calculation:

• Regular pay: 8 × 200 = NT$1,600
• Overtime (first 2 hours): 2 × 200 × 1.34 = NT$536
• Total pay: 1,600 + 536 = NT$2,136

The employer paid NT$2,150, which is above the legal requirement, thus compliant.

4. Case 4: National Holiday Shift (10 Hours)

According to Article 39 of the Labor Standards Act, employees working on a national holiday must be paid double wages.

Calculation:

• Regular hours: 8 × 200 × 2 = NT$3,200
• Overtime (2 hours at 1.34×): 2 × 200 × 1.34 = NT$536
• Total payable: 3,200 + 536 = NT$3,736

The employer paid NT$2,150, which is below the legal standard.
Chen may request additional compensation from the employer.

5. Case 5: Worked 9 Hours on a Rest Day

Chen worked six consecutive days during summer vacation, with one of the days designated as a rest day, working 9 hours.

• Article 36: Employees must have two days off every seven days — one “regular holiday” and one “rest day.”
• Article 24: For work performed on a rest day:
• Up to 2 hours: paid at 1.34× the regular hourly rate
• After 2 hours: paid at 1.67× the regular hourly rate
• For work beyond 8 hours: paid at 2.67×

Calculation for 9 hours of work on rest day:
(200 × 2 × 1.34) + (200 × 6 × 1.67) + (200 × 1 × 2.67) = NT$3,074

The employer paid NT$1,800, which is below the legal amount.
Chen can request supplementary payment under the Labor Standards Act.

Key Reminders for Working on Holidays

1. Confirm scheduling:
   If an employee works more than six consecutive days, the seventh day becomes a regular holiday, and employers cannot schedule work. Otherwise, the employer may violate labor law and face fines.
2. Compensatory leave:
   If a national holiday is rescheduled, wages or compensatory leave must follow the same rules as regular or national holidays.
3. Documentation:
   Employers should clearly record attendance, overtime, and compensatory leave in payroll records to ensure traceability in case of disputes.

Overtime calculation assistance:
The Ministry of Labor provides an online Overtime Pay Calculator : https://calcr2.mol.gov.tw/Daily