Office Work Closing Time: Overtime Fee
One of the expenses that many businesses are interested in when renting an office for office work closing time is the overtime fee. With some specific business models, often having to work overtime, or international operating hours, with different time zones than usual in Vietnam, the overtime factor becomes especially important.
What is the office rental fee after hours of office work closing time
Overtime fee is an additional fee charged when the company rents an office after the specified working time in the building.
Office buildings usually have office hours from 8:00 a.m. to 6:00 p.m. Monday-Friday, 8:00 a.m. to 12:00 p.m. Saturday. Fixed hours for tenants will usually be based on labor laws.
However, depending on the regulations of each building, the working time may vary. This is clearly agreed in the contract signed between the two parties when renting the office.
If the enterprise works outside the time frame specified in the contract, it is counted as overtime working time. At this time, tenants are required to pay additional fees for the building.
How to charge overtime
General features of the overtime fee at Grade A, B, and C buildings will all include expenses such as after-hours electricity, cleaning, parking, salaries for building staff (within the outside time frame) hour)…
Depending on the tenant’s office building, the overtime fee will be calculated as follows:
- Calculated by office
- Calculated according to the rented area
- Calculated by the device used
Calculated by office
This is also a common calculation method today, this fee is fixed on the contract for one hour of use.
Example: In an office lease agreement agreed by both parties, the overtime fee for an office is fixed at 150,000 VND/office/hour.
Overtime charge according to the rented area in the office work closing time
Based on the number of m2/hour, the building will stipulate to collect the fee. So depending on how much the company’s office space is rented, the building will be based on how much extra fees are charged overtime.
Overtime cost will be calculated as Overtime fee/m2/hour x total rental area x number of overtime hours.
Overtime fee/m2/hour = 0.05 USD, rental area = 250m2, number of overtime hours = 3 hours, overtime cost is: 0.05 USD x 250m2 x 3 hours = 37.5 USD
This fee is not necessarily fixed, depending on the different rental area, it can be negotiated or fixed at different rates:
– Tenants with less than 250m2 area => Overtime fee will be = 0.05 USD/m2/hour
– Office tenants from 250m2 => Overtime fee will be = 0.75 USD/m2/hour
Calculated by the device used
Some office buildings charge an overtime fee based on equipment used in the office. For example, the building will charge for electricity for air conditioners, specifically FCU – Fan Coil Unit (also known as air conditioner throat).
Calculation method: Amount/throat of air conditioner/hour of use. For example 10 USD/FCU/hour.
This calculation has the advantage that, if the business rarely works overtime, the building will be free of charge overtime. Companies that often work overtime or have equipment that needs to be turned on 24/7 will charge a surcharge.
Currently, there are many buildings that do not charge overtime fees depending on building regulations or negotiations. So there are many businesses that can comfortably work until 8pm – 9pm or even on weekends without paying extra.
Characteristics of overtime fees in Grade A, B, and C buildings
For Grade A and B buildings:
Almost all Grade A and B standard offices always charge overtime. In order to achieve high-class standard building quality, these buildings all invest in central air conditioning, ventilation + lighting systems for the entire floor or the entire office floor, not individually installed in each area.
Therefore, when businesses work overtime, the entire electricity of the entire floor must still be active at the same time to maintain separate office areas.
At this time, it is necessary to collect an overtime fee when renting an office.
For Grade C building:
Grade C offices usually have or don’t charge an overtime fee. For small buildings, investors tend to install local air conditioners (wall mounted) and have their own electricity meters in each office.
When the business works overtime, the air conditioning system or electricity is counted separately in the electricity meter. Therefore, the tenant only needs to pay for this extra electricity.
With today’s competitive office rental market, overtime charging is negotiable and negotiable in contract terms. If you cut these extra costs, you can save a good amount of money for the company.
You can read the previous article here: Office Ventilation Requirements: Fresh Wind Supply
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Q: What are the legal requirements for lease contracts in Vietnam?
Vietnam has specific legal requirements for lease contracts, such as registration with the local authority and the inclusion of certain clauses, including those related to rent adjustment, termination, and dispute resolution.
Q: What are the different types of lease contracts available in Vietnam?
There are several types of lease contracts available in Vietnam, including commercial office leasing, co-working space lease contracts, and business center lease contracts.
Q: What is an office lease contract?
An office lease contract is a legally binding agreement between a landlord and a tenant, which sets out the terms and conditions for renting office space.