What you need to know about the 2025 update on overtime regulations under the Labor Standards Act: How to avoid common legal pitfalls?

With the rise of labor rights awareness,Labor Standards Act Overtime ProvisionsThere will be another major adjustment in 2025. In addition to clarifying the overtime limit, reporting and compensatory leave mechanisms, this amendment also imposes strict regulations on common traps. In order to help labor and capital clearly understand the key points of the new system and effectively avoid the risk of violations, this news report combines interpretation of the provisions, case analysis and practical suggestions to take readers in-depth into the latest overtime regulations of the Labor Standards Act in 2025.

Key points of the new overtime system of the Labor Standards Act in 2025

Overview of major legislative changes

The Labor Standards Act 2025 will have major changes to overtime regulations. The following are the key points you should know:

The new system clearly defines the usage of "declaration", "record for review" and "compensatory leave management". Violations will be punished by having the name of the public institution published, thus creating social pressure.

Detailed analysis of overtime pay standards

In 2025,Overtime Pay Calculation MethodThere are no major changes, but the regulations on "overtime on Saturdays and Sundays", "overtime on statutory holidays" and "overtime on night shifts" are clearer. Please see the table below:

Written consent and declaration process

The new system stipulates:All overtime work must be agreed in writing, and the company should keep it for at least 5 years and complete the internal reporting procedures before overtime work.If it is later discovered that there is no record or consent form, it will be directly listed as a level violation.

Basic process for overtime reporting:

1. Employees submit written overtime application.
2. After the supervisor reviews it, both parties sign and archive it.
3. After overtime work is completed, overtime pay or compensatory leave will be calculated based on the working hours.
4. If the overtime is not carried out according to regulations, the person will face labor inspection.

Common pitfalls in practice and how to avoid them

Trap 1: Failure to report overtime in advance or verbal agreement

Myth:Many companies still give overtime orders via groups/LINE or verbally without leaving any written records.

risk:The labor side can directly file a complaint based on this.Labor Standards Act Overtime ProvisionsIf the inspection finds violations, the company will be heavily fined.

Suggested countermeasures:

• Always use the overtime application form/system to keep records
• Regularly check the ledger and sign-off process
• Both parties must keep their own records to avoid future disputes

Trap 2: Unclear deadline for compensatory leave and long-standing arrears

Myth:The compensatory leave is not accumulated clearly and is not allocated even at the end of the year.

risk:Under the new system, if you fail to take your compensatory leave beyond the due date, it must be automatically converted into overtime pay, and there should be no delay.

Suggested countermeasures:

• Annual control of compensatory leave and establishment of a notification mechanism for compensatory leave expiration
• If employees have overdue compensatory leave, they should proactively request overtime pay.
• The period of compensatory leave agreed upon by both parties must be clearly stated and cannot be extended at the will of the signatories.

Trap 3: Trying to calculate overtime pay on weekends based on extra working hours on weekdays

Myth:Companies try to calculate overtime work on rest days as weekday working hours to reduce the pressure of salary payment.

risk:This practice is illegal.Overtime pay on rest daysThe minimum working time is 4 hours and the salary is increased.

Suggested countermeasures:

• Labor and management should not replace statutory calculation with verbal agreement
• If you only work 2 hours overtime on that day, you should still be paid for 4 hours.

Trap 4: Illegally designating overtime work on holidays

Myth:Some companies require employees to be at work on statutory holidays, and even consider it legal after "agreement".

risk:Unless there are special statutory circumstances such as natural disasters, emergencies, etc.Illegal designation of overtime work on holidaysAll such violations will be regarded as violations, and in addition to wage increases, the company will be subject to administrative sanctions.

Suggested countermeasures:

• Supervisors must understand the difference between "holidays and rest days"
• It is strictly forbidden to schedule regular leave attendance unless necessary