Overtime Exemption Audit

An overtime exemption audit is part of the compliance process employers must undertake when applying for or maintaining approval to have employees work beyond the statutory overtime limits. It is an audit conducted to assess the risk levels of work activities in an organization that require employees to work overtime beyond 12 hours a day. This audit is mandatory for organizations applying for an overtime exemption under the Employment Act when overtime work exceeds the allowed limit.

This audit is conducted by an MOM-approved auditor from an accredited auditing organization and is a mandatory step for employers applying for overtime exemption, ensuring workplace safety and compliance while allowing extended work hours under regulated conditions.

Employers must apply for an overtime exemption from the Ministry of Manpower (MOM) if employees are required to work more than 12 hours a day (up to a maximum of 14 hours) or exceed 72 hours of overtime in a month.
As part of the exemption application, employers need to conduct a risk assessment on the work activities during the overtime period. This risk assessment must be endorsed by an Approved Risk Consultant (ARC) or auditor approved by MOM.
The audit or risk assessment verifies workplace safety and compliance with employment laws around overtime work, ensuring that extended work hours do not compromise employee well-being.
Employers must have a good track record on employment standards and safety for the exemption to be approved.
The exemption application must be submitted at least 3 months before the overtime work starts or before the expiry of the current exemption.
Regular audits or monitoring may be required by MOM to ensure continued compliance with the exemption conditions.

Audit Team

Auditors involved in overtime exemption audits are typically Ministry of Manpower (MOM) approved Workplace Safety and Health (WSH) auditors affiliated with SAC (Singapore Accreditation Council) accredited auditing organizations. These auditors are qualified to conduct risk assessments and audits related to workplace safety, including overtime exemption assessments.

Auditors must be certified and approved by MOM and SAC.
They belong to accredited SAC Auditing Organizations (SAC-AOs) registered with MOM.
These auditors conduct comprehensive audits including document reviews, site inspections, and interviews to ensure compliance with safety and health regulations.
Auditors in these teams have expertise in construction worksites, metalworking industries, bizSAFE RM audits, shipyards, and general workplace safety.
Their role is to endorse risk assessments for overtime exemption applications and ensure workplaces meet safety standards as per MOM requirements.

The audit team typically consists of a group of certified professional safety auditors from approved organizations specialized in workplace safety and health audits.

Testimony of Audit Conducted

Testimonies or statements from auditors involved in overtime exemption audits emphasize their role in ensuring workplace safety and regulatory compliance. Accredited auditors confirm that their audits focus on verifying that risk levels for overtime work beyond 12 hours a day are low, and that none of the banned activities listed in the Ministry of Manpower’s guidelines are carried out during extended overtime periods. They also confirm that the company’s risk control measures are effective and that the risk assessment aligns with MOM’s requirements before endorsing the overtime exemption applications. Auditors stress the importance of their fair and accurate reporting to protect employee well-being while enabling operational flexibility for employers under the overtime exemption framework.

Overtime exemption audit aims to balance business needs and worker welfare through responsible auditing, stringent enforcement, and ongoing adjustments to overtime exemption policies based on operational realities and employee protection. It ensures workplace safety and compliance with MOM’s regulations for extended working hours beyond the normal legal limits.