What is required for overtime to be included in time-loss calculations?

For overtime to be included in time-loss calculations, it is essential that it is part of the work contract. This requirement ensures that the overtime pay is considered a regular and expected part of the employee's earnings rather than an unusual or exceptional circumstance. When an employee's contract specifies conditions regarding overtime, this creates a clear basis for calculating compensation during periods of time-loss due to injury or illness.

Such contractual stipulations can provide guidance on how overtime compensations are handled and ensure that employees receive a fair assessment of their earnings based on the time they would reasonably have worked had they not been injured. This approach also helps to avoid disputes regarding what constitutes regular pay versus overtime and reinforces the importance of clear agreements between employers and employees regarding overtime work.

Understanding these contractual obligations is critical for claims adjusters when processing time-loss claims and ensuring that the calculations accurately reflect the employee's typical earnings.