Overtime Fees When Renting an Office and Common Calculation
In the current market, renting an office is an essential need for all domestic and foreign businesses operating in Vietnam. Depending on the location, area, and type of office, the contract between the two parties requires the lessee to pay different rental fees. In addition to the room rent, the lessee has to pay several expenses incurred. Overtime fees are the most popular type of expense.
The concept of overtime fees when renting an office
The Overtime fee is understood as an additional surcharge due to the lessee’s use of the office overtime compared to the agreed operating time of the building in the contract.
Office buildings for lease will be based on the state’s labor laws, providing a fixed working time frame. Usually, there will be a working milestone from 8:00 to 17:00 from Monday to Friday every week to work
However, depending on the contract agreement and working hours, there may be changes when renting an office
All contractual overtime hours will be charged for overtime. The lessee has to pay an additional fee to the building owner/building management and call it an out-of-hours fee
Why do you have to charge overtime when renting an office?
When the lessee works outside the office’s prescribed hours, the building’s service fee is also incurred, such as water, electricity, security, cleaning, etc., and consumable facilities. other wear.
Overtime fee for Grade A and Grade B office segments
Currently, Grade A and B office buildings all charge an overtime fee, but the price depends on the size of the building.
The reason why? Because the purpose of office rental buildings is for customers to rent to work. All rental offices need to install air conditioning and lighting systems in the center, and public places.
When the customer works overtime, the tenant still has to operate those utilities, air conditioning, lighting, security, etc. Attentive service to customers. Therefore, it is reasonable and necessary to collect overtime fees
You can read the previous article here: Principles of Meeting Room Interior Design
Overtime fee for Grade C office (cheap office)
In Grade C offices or offices with a small area, wall-mounted air conditioners will often be used, with electricity meters installed directly in each room. So the system will automatically calculate that tenant’s electricity bill each month. The lessee only needs to pay the extra cost for security guards or support staff during the business’ overtime working time.
However, the current office rental units are extremely competitive to attract customers. Therefore, there will be many building owners who are more willing to negotiate discounts as well as these overtime fees.
Besides, room rates and overtime rates are negotiated at an appropriate rate, your company will save a significant extra amount each month.
Overtime fees charging method when renting an office
In the office market for lease in Ho Chi Minh City today, 3 forms of overtime charging have been applied in many buildings (both Grade A, B, and Grade C low-cost office segment).
Calculated by office
These calculations are applied in many low-cost office buildings and this is the easiest calculation method to understand. The cost is fixed according to the initial agreement on the contract.
Example: In the contract signed between the lessee and the building management, it is 300,000 VND/office/hour
Calculation by area
This calculation is based on the number of square meters of office space, the higher the total area of the office, the more fees the business will pay.
- Calculation formula: Charge rate/m2/h
Charge based on the device used
This calculation method is not common in HCM, because the control ability of the management unit is not guaranteed. Because the number of devices used for each business is not fixed.
Calculation method: Number of devices (air conditioners, projectors, lights…)/hour of use.
For this calculation, the overtime fee is usually waived if the business uses little equipment, or sometimes works overtime.
In each lease, there will be an overtime fee agreed between the parties in advance. Even if your business doesn’t have an overtime schedule, make this clear in your contract to avoid conflicts later on.