Overtime

Key Points

  • There are no specific statutory entitlements or obligations in relation to overtime.
  • Overtime will be subject to the terms (express or implied) of the employee’s employment.
  • Changes to overtime may, therefore, need to be dealt with as a change in contractual terms.
  • Overtime need not be paid – it is possible that an employees’ contract will require them to work additional hours to get their job done, but without additional pay.
  • If overtime is not paid, employers must be aware that employees on a low salary may be being paid less than the national minimum wage if required to work unpaid overtime.
  • Employers should be aware of the Working Time Regulations limitation on the working week when requiring overtime.
  • Overtime arrangements which put part time workers at disadvantage could be indirectly discriminatory.
  • Overtime should be included in the calculation of holiday pay pursuant to recent case law.
  • See also cards on contracts, discrimination and national minimum wage. 
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