Understanding Overtime Fee Details When Renting an Office
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Overtime fee is no longer a strange concept for businesses using office rental services. In addition to paying the monthly office rental fee, depending on the agreement between the lessee and the building owner, the business also has to pay several other costs such as management fee, parking fee, electricity bill,… and Overtime office rental fee is one of them.
1. What is the overtime fee when renting an office?
Overtime fee is an additional fee incurred when the tenant uses the office beyond the working time specified in the contract.
Office buildings for lease are based on the labor law of the law to provide a fixed working time frame. Normally, office buildings for rent have fixed working hours, from 7:00 to 18:00 from Monday to Friday and from 07:00 to 13:00 on Saturday. The working time of each building is regulated differently and is clearly stated in the office lease contract. And all working time outside the time specified in the contract is understood as overtime and the tenant must pay an additional cost, called overtime fee.
2. Why pay an overtime fee when renting an office.
Normally, the overtime fee is usually to pay for the incurred costs of the building such as electricity for the elevator, electricity for public areas, WC water, overtime wages for operators… and air-conditioning center (the biggest cost).
3. Ways to charge overtime when renting an office.
Currently, in the office rental market, the way to charge overtime when renting office buildings does not have a certain standard. However, there are 3 common methods as follows:
+ HOW TO CHARGE OVER HOURS BY OFFICE
This is a fairly common calculation method and is applied by many buildings to collect overtime fees. Specifically, this calculation will be specified by the buildings on the contract based on an office in an hour of use. This calculation applies to both traditional offices and full-service offices.
For example: In the contract signed between the two parties, the item of overtime fee when renting an office is 200,000 VND/office/hour.
+ HOW TO CHARGE OVER HOURS BY RENTAL AREA
This calculation is based on the office space, how many m2 businesses rent will charge as much. Overtime cost will be equal to overtime fee/m2/h multiplied by total rental area.
For example, Overtime fee of 0.02 USD/m2/hour, 300m2 rented area, the overtime fee must be paid:
We take 0.02 USD x rented area (300m2) x number of working hours = amount of overtime fee to be paid.
+ HOW TO CHARGE OVER HOURS BASED ON DEVICES
Many office buildings have a way of charging overtime based on the equipment used in the office. Usually, the FCU unit – Fan Coil Unit (also known as the air conditioner) cools the office area. This calculation is similar to the overtime calculation by area.
Office buildings will pre-determine the amount of air conditioner/hour of use.
For example: 10 USD/FCU/hour.
4. Frequently asked questions about overtime fees when renting an office
QUESTION: DO CLASS A OFFICES, GRADE B OFFICES CHARGE FOR OFF hours?
Answer: Currently, most of the Grade A and Grade B office buildings have regulations to collect fees for working overtime. Because the purpose of these buildings is for customers to rent offices. Therefore, to meet the convenience of tenants, the buildings are equipped with a central air conditioning system and a central lighting system according to the standard of Grade A office in each office and public areas such as corridors, paths…
Therefore, when the tenant overworks the specified time frame, the building side still has to operate all the air conditioning, lighting, security, ventilation systems… to best serve you. Therefore, collecting overtime fees when renting an office is necessary and reasonable.
QUESTION: WHAT ARE CHEAP OFFICE CHARGES AT GRADE C OFFICE, CHEAP OFFICE?
Answer: In Grade C buildings or low-cost offices, small offices often use wall-mounted air conditioners and have separate electric meters for each office. So the air conditioning system and the electricity system have been included in the electricity bill. In addition, the building site does not cost much for the security staff, the receptionist, etc., so there is no overtime fee if there is overtime.
Therefore, the lessee only needs to pay the cost of the electricity consumption itself and does not have to pay overtime fees like Grade A and Grade B buildings when renting an office.
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