Within-Statutory Overtime
Within-statutory overtime refers to work extended up to the standard working hours specified in Articles 50 or 69 of the Labor Standards Act, when the prescribed working hours set by collective agreement, employment rules, or labor contract are less than those standard working hours, by mutual agreement.
Court precedents and administrative interpretations both hold that overtime work under Article 56 of the Labor Standards Act refers to work exceeding the standard working hours of 40 hours/week and 8 hours/day under Article 50, or 7 hours/day and 40 hours/week under Article 69. Therefore, work that exceeds the agreed working hours between employer and employee within the scope of standard working hours under Articles 50 and 69 is not considered overtime work under Article 56 that requires premium pay.
Simply put, within-statutory overtime is overtime within statutory working hours that occurs when total working hours in a specific cycle exceed the contractually agreed hours but actual working hours remain within legally prescribed hours.
Therefore, while it is overtime, employers are not obligated to pay an additional 0.5x premium.
Here's a simple example:
If you use 4 hours of half-day leave during an 8-hour prescribed work day and work 6 hours?
In terms of total recognized working hours, you worked 10 hours, so 2 hours of excess work occurred
Since actual working hours are 6 hours, which is less than the statutory 8 hours/day, the 2 hours of excess are calculated as within-statutory overtime, not regular overtime.
