Many employees across England engage in overtime, and it is something that most people are aware of. It provides the working citizen with the ability to increase their wages and the business to meet their demand. Rights and obligations are contained in contracts of employment, company policy, and codified employment law. All parties must have some knowledge of the legalities to ensure disputes can be avoided and everyone is treated fairly.
Key Takeaways
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Overtime pay is contractual, not automatic: There is no general legal right to overtime pay; entitlement and rates depend on the employment contract, subject to minimum wage rules.
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Working hours are legally capped: The Working Time Regulations limit average working hours to 48 per week unless an opt-out is agreed, and guarantee rest breaks.
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Clear duties and protections apply to both sides: Employers must manage overtime lawfully and fairly, while employees have rights to rest, fair treatment, and contractual pay.
Overtime – What Is It?
At its most basic level, overtime is any work that is conducted outside of the employee’s standard contractual hours. The ‘standard’ hours should be contained in the contract of employment or through implied practices.
There are several forms of overtime as follows:
- Compulsory – contractual requirement to work additional hours if required.
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- Guaranteed – employer must offer set hours, and when offered, the employee must work said hours.
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- Non-guaranteed – employer is not required to offer additional hours, but if offered, the employee has to accept.
- Voluntary – employer may offer overtime, but the decision to accept is up to the employee.
Do I Have a Right to Overtime Pay – What Does the Law Say?
Generally speaking, there is no legal right to receive payment for working additional hours. If payment is to be given, this would depend on the clauses in the contract of employment.
However, if the contract states an amount payable, whether that is wording such as ‘double time’ or a specific amount, then your employer is obligated to pay this.
If the contract does not contain the above information, then the amount payable is purely at your employer’s discretion. The only requirement would be that the average total pay across the period is at least the National Minimum Wage or the National Living Wage.
What Regulations Cover How Much I Can Work?
Such provision is contained in the Working Time Regulations 1998 (WTR). The WTR sets out the limits on working hours and stipulates the employees’ rights to breaks. This is irrespective of the overtime arrangements in place.
The most important provision is the average weekly limit of 48 working hours. This is calculated over a 17-week reference period and means that employees are not required to work more than this unless an opt-out agreement has been put in place and signed. If workers choose not to opt out, they cannot be treated detrimentally for refusing. The requirements considered below apply whether or not an opt-out agreement has been followed.
The following are some of the other key parts of the Regulations:
- 11 hours of continuous rest in a 24-hour period.
- One full day off each week or two full days over a fortnight.
- 20-minute rest break during any shift longer than six hours.
What Are My Responsibilities as an Employer?
First and foremost, it is the employer’s responsibility to make sure that any and all overtime arrangements adhere to the law and the contract of employment itself.
Other responsibilities are as follows:
- Keep sufficient records which set out their compliance with the legal framework.
- Applying chances for overtime without discrimination and with fairness.
- Ensuring holiday pay is dealt with in the realm of overtime. Regular and consistent overtime, whether it is voluntary or not, should be included in holiday pay.
What Are My Rights as an Employee?
- To be paid overtime as per your contract of employment.
- To refuse to work more than 48-hours a week unless there is a signed opt-out agreement in place.
- Rest periods as per the WTR.
- To be treated fairly and respectfully when refusing to work hours above and beyond 48-hours.
- To understand the remuneration of overtime and how this can impact things such as holiday pay, redundancy pay, and pensions.
Howell Jones is a team of expert Employment Solicitors in Surrey. Contact our Surrey solicitors for more advice and information.
