The amount of unpaid overtime that can be claimed by employees is limited to two years; however, if this affects a large number of employees and the amount of overtime worked is considerable, back pay can be significant. Whether employees are entitled to paid overtime — and whether employees should be expected to put in overtime when required — will depend on the terms of their contract.
Employers are, generally, free to set their own policy on overtime and the payment for such work. For example, if you may occasionally need staff to work outside of their normal hours to complete a project, fulfil a big order or meet seasonal fluctuations in demand, you may wish to state in your contracts:. If you work overtime, we will pay you at your normal basic hourly rate.
All overtime that you carry out must be expressly approved in advance by management, failing which you will not be paid for any work that you do in addition to your normal hours of work. Employees can only be required to work overtime, paid or unpaid, if provided for in their contact. In the absence of any such provision, staff will be within their right to refuse to work outside of their contracted hours. However, if there is a contractual clause relating to compulsory overtime, and an employee refuses to work, the employer may view this as a breach of contract and choose to deal with it as a disciplinary matter.
Unpaid overtime is less likely to be an issue for salaried employees, as their pay should, in theory, be sufficient enough to soak up any additional hours they put in. This is especially true of more senior staff, where the expectation to work overtime is reflected in higher salaries.
In fact, despite recent reports focusing on low-paid workers in the retail and hospitality industry, analysis by TUC found that it is chief executives who put in the most unpaid hours, at an average of Although there are varying opinions regarding the culture of salaried staff working unpaid overtime, from an employment law standpoint, the position is clear: unless otherwise stated in their contract or expressly agreed ahead of time, salaried employees will not be entitled to pay.
Nevertheless, for the sake of transparency, it is a good idea to state within your contracts that staff are expected to be flexible. Keep in mind, too, that more junior members of staff who are also on salary may be at risk of being paid below minimum wage if required to do regular overtime. UK, remember your settings and improve government services. We also use cookies set by other sites to help us deliver content from their services.
You can change your cookie settings at any time. Employers do not have to pay workers for overtime. However, your average pay for the total hours you work must not fall below the National Minimum Wage. Contact Acas for free and confidential advice on working hours. Check what you need to do. What are the minimum rest periods? What are the maximum hours I can be expected to work over an average working day?
What are the maximum hours a nightworker can be expected to work in every 24 hours? Are there any special health protections for me as a nightworker? What should the free health assessment entitlement for nightworkers include? What are the restrictions on night working if I am pregnant? What are the health risks of working nights when pregnant?
What are the restrictions on Sunday working for retail and betting workers? How does employment law distinguish between the employment of children and young persons? Are there any restrictions on hours of work for children? Are there any restrictions on hours of work for young workers?
I have been made redundant and I have built up lots of unused flexi-time. Am I entitled to be paid for it? I am an hourly-paid careworker working in the community. A dedicated schoolteacher I know works until midnight twice a week. He has taken on a new subject, has a large and difficult class, and because his employer expects teachers to contribute to the school community he also coaches a sporting team.
That is a lot of unpaid work each year. Then there are law graduates working hour days and parts of their weekend. That is neither reasonable — and must be a health risk — nor discretionary. The firm unofficially expects graduates to work long hours if they want to keep their job. Some unpaid work by white-collar workers is reasonable; plenty of people steal time from their employer by doing personal errands at work or taking false sick days.
Overtime and undertime cuts both ways. The problem is when unpaid hours lengthen and become a constant part of the role. That is, companies hiring white-collar staff with a view that they must work 50 hours a week if they want to keep their job and paying them for This issue is not new. That is the trade-off for a higher salary, building a career, getting ahead and working at a prestigious organisation.
The difference, of course, is that blue-collar workers covered by industry awards are more likely to receive overtime pay or time off in lieu for extra hours.
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