Overseas Allowance covers Overtime Pay?

A friend once asked, if it is legal for his company to not pay him Overtime for those additional hours clocked while on overseas business trip. His company had highlighted to him that the Overseas Allowance given to him shall cover Overtime as well.

Sounds fishy?

If one is covered under Part IV of the Employment Act, he / she shall be entitled to Overtime claims. It doesn’t matter whether work is perform locally or abroad. Further, using allowance to cover OT pay should be deem as illegal.

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