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Restaurants and QSR chains · Overtime

Overtime management for restaurants and QSR chains

In a restaurant, the last table decides when the shift ends. Overtime comes from late tables, private party bookings, New Year's Eve, and a cook or steward covering a colleague who did not turn up. The OSH Code treats work beyond the prescribed hours as overtime, payable at twice the ordinary wage rate and only with the worker's consent. Outlets that manage it well count it from punches, approve it within the week and cap it before it becomes a habit.

Four sources of restaurant overtime

The first three sources below can be planned. The restaurant manager knows about a 60-guest birthday party a week ahead, and New Year's Eve is on the calendar all year, so consent and the team list should be settled well before the night. Double shifts are the risky source: they happen when someone does not turn up, and when they become routine they point to a staffing gap, not a busy night.

Count from the shift end, approve while the night is fresh

For closing staff, count overtime after shift end rather than beyond full-day hours, because the rostered end is the promise the outlet made. Overtime is picked up every night from the punches, and a 30-minute minimum means ten minutes of clearing a table never becomes a claim; anything longer is rounded down to the quarter hour. The restaurant manager approves or rejects in My Team the next day, while everyone still remembers the party, and HR approves after. A monthly cap per person keeps anyone from drifting into regular double shifts.

New Year's Eve, worked out

Lakshmi is a commis on a monthly gross of ₹15,600, and her outlet works out day rates on a 26-day month. On New Year's Eve her shift ends at 11 pm, but the last party leaves late and she finishes the kitchen close at 3:40 am. Her overtime is worked out in five steps, and the multiplier depends on how 31 December sits in your calendar: a working day, her weekly off or a holiday.

Time off instead of cash, with guard rails

After a long season, a tandoor cook may prefer two days at home to a little more in the account. Offer that choice honestly: set the payout to employee's choice, and 4 approved hours turn into half a day of comp-off, 8 hours into a full day. Two guard rails stay. Overtime needs the worker's consent, and every pay multiplier should be 2 or more, because the OSH Code sets overtime pay at twice the ordinary wage. Hours beyond the daily limit are the ones to be careful about swapping for time off, so get advice first.

How to set it up in ZeniaHR

  1. Turn the overtime policy on and choose after shift end, since the rostered closing time is what staff agreed to.
  2. Leave the minimum at 30 minutes so clearing one table does not count, and let rounding down to 15 minutes handle the rest.
  3. Enter pay multipliers of 2 or more for ordinary working days, weekly offs and holidays alike.
  4. Pick employee's choice as the payout where cooks may prefer comp-off, and cap overtime hours per person per month.
  5. Have restaurant managers decide claims in My Team within two days; HR then clears the rest in bulk before month close.

Read more about overtime in ZeniaHR.

Roles this applies to

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Frequently asked questions

How is overtime paid to restaurant staff in India?

Hours worked beyond the prescribed limit are overtime, and the OSH Code sets the rate at twice the ordinary wage, with the worker's consent. Divide the day rate by 8, and that hourly figure times the overtime hours times 2 is the amount due. Check your state's Shops and Establishments rules too, since they may add conditions for restaurant staff.

Should restaurants pay overtime for staying back after closing?

Yes, when the stay takes the employee beyond their rostered hours and past the minimum you set. Count it from the shift end, use a sensible minimum such as 30 minutes so a few minutes of clearing up is not claimed, and approve it within days. Regular late closes are a rostering problem, so fix the shift timing instead of living on overtime.

Can restaurant staff choose comp-off instead of overtime pay?

They can be offered the choice. In ZeniaHR the overtime payout can be pay, comp-off or the employee's choice, and comp-off converts at 4 hours for half a day and 8 hours for a full day. For hours beyond the daily limit the legal position is pay at twice the ordinary wage, so get advice first if you want comp-off to replace pay by default.