# What is an Overtime Policy?

An overtime policy defines when extra hours apply and how they are compensated. SMEs must balance customer demand with wellbeing and costs. Clear rules prevent disputes and support compliance.

Source: https://faqtic.co/glossary/overtime-policy

## Why it Matters for SMEs

- Controls costs
- Ensures fairness
- Supports compliance

## Example in Practice

Factorial calculates overtime and TOIL automatically.

## Frequently Asked Questions

### Overtime or TOIL?

Choose by law and culture.

### Cap overtime?

Yes, to protect wellbeing.

### Track approvals?

Yes, with workflows.

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