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It depends what you put in their contract of employment as to what equates to a normal working day. If you had put a normal working day is for example 9-5 with unpaid 1.2hr lunch then that is 7.5hrs a day and in which case your friend would be correct. However if you put something to the effect that hours will vary across each working week (with some details such as max 12 hrs, what breaks are included or excluded, etc) then you are correct not to pay overtime.
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