"I've been in front of my PC since 6:30 a.m. I might get up around 2 p.m. to grab something to munch on or later in the evening, around 7 p.m., if I’m ready to close early for the day," says a content marketer working with a Nigerian startup. He works remotely.
Asked what the recommended working hours are, he said, "8 a.m. to 4 p.m., I guess."
And to the question of whether his employer knows he works longer than is required, he laughs and responds sarcastically, "My employer probably spends longer hours working. Isn’t that the reality of working at a startup?"
If quizzed on how many hours they are to work weekly, many startup employees might have to consult their employment contract or offer letter to confirm.
The content marketer is expected to work 40 hours weekly, but on average, he puts in between 48 and 50 hours, excluding weekends.
What does this suggest? He’s working overtime, but, of course, without the perks.
Why does overtime matter?
Overtime refers to the additional hours an employee works beyond their agreed-upon working hours — a regular 8-hour workday or 40-hour workweek based on most labour laws — subject to compensation, as provided within employment contracts and other agreements.
Recently, a new "right to disconnect" rule was passed in Australia, allowing workers to ignore emails, texts, and phone calls from work/employers outside office hours, as well as requests to do extra work in the evenings and weekends.
This has been lauded by many, with workers in other locations hoping such regulations can be replicated in their countries. To a large extent, European labour laws are some of the most robust in the world.
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But does this level of protection apply to startup employees, especially in places like Nigeria?
Where do startup employees fit in?
Interestingly, the Nigerian Labour Act 2004 has limited specific guidelines regarding overtime. However, the law recognises that the standard work time should not exceed 40 hours per week, with exemptions for certain categories of employees and specific industries.
It is expected that employers and employees both abide by the obligations specified in their employment contracts and other binding documents.
According to the Act, workers are entitled to at least one day of rest per week and should be granted sufficient rest intervals between working periods, particularly for shift workers.
The law expects employers to communicate overtime policies and corresponding compensation to all employees and avoid coercing employees into working overtime against their will or beyond the legal limits.
Overtime compensation is calculated for salaried employees based on their equivalent hourly rate, which is derived by dividing the monthly salary by the total number of work hours in the month. This is then multiplied by the number of hours worked.
One of the exemptions in the Act regarding overtime compensation applies to employees with irregular working hours, where there is no clear distinction between work and off-duty time.
Interestingly, this description often fits the reality of an average startup employee, who frequently works beyond typical work hours.
However, startups are classified as having regular working hours, which raises the question of whether their employees are truly eligible for overtime compensation.
This reality raises the question of whether startup employees are adequately protected under existing labour laws, given their unique work demands.
When overtime is a norm
Startups, like other employers, are bound by the Labour Act, which guides the relationship between employers and employees in the public and private sectors.
But Toluwalase Dele-Peters, Associate at Perchstone & Graeys LP, points out that employers in the private sector often exploit a loophole in the Working Time Act 1997 to avoid explicitly stating overtime and accompanying compensation when drafting their agreements.
Unlike public organisations, which usually state work hours (e.g., 8 a.m. to 4 p.m.) and support it with specified compensation for work beyond the specified period, private companies often include a clause requiring employees to work outside their standard hours when their services are needed.
This clause sometimes precludes the possibility of employee exploitation, as the refusal of the worker to respond when called during weekends and outside work hours can be said to be a violation of the agreement to carry out their responsibilities.
On the subject of working outside standard hours, the content marketer confesses that he does this because it’s almost impossible to fit all his tasks into an eight-hour workday.
This echoes the experience of another tech talent featured recently in the Work Life series, who shared how a job requiring 25 hours per week ended up consuming more time due to overwhelming tasks. Cases like this turn attention to a need to control workload instead of emphasising overtime.
A significant issue for many startup employees is the inability to separate their personal and work lives.
As Sheriff Adedokun, Founder/CTO Pushbio, notes, the nature of working at startups demands flexibility, which blurs the lines between work hours and personal time.
Several factors, such as urgency and critical issues, often compel employers to contact employees outside of working hours. For instance, a software engineer may be contacted to fix a bug that is obstructing customer use, and in such cases, an immediate response is often expected.
Adedokun emphasises the importance of consent in these cases. However, the reality is that knowledge workers, especially those with remote arrangements, find it difficult to draw a clear boundary between work and life, as their devices constantly keep them connected to their jobs.
People can now work from anywhere, unlike those who must report to a physical location. This flexibility further complicates the enforcement of regular working hours and, by implication, overtime.
Navigating overtime as a startup employee
Given the unique nature of the startup space, Adedokun says it is essential for employers to consider this reality when determining overall remuneration packages.
In addition, employers should communicate overtime expectations clearly and offer additional compensation or benefits, such as bonus leave days, to employees who go above and beyond.
Dele-Peters recommends that employees should understand their rights and engage in transparent discussions with their employers about overtime, particularly before accepting an offer.
