Overtime pay

Should you be paid extra for working overtime? And how many hours can you work legally, anyway? Working extra hours is becoming more common, but make sure you’re not being exploited.

Some extra cash would make these additional hours a bit more bearable...

Should I get overtime pay?

Unfortunately, working overtime doesn’t always mean you’ll be paid extra. Crap, we know. All companies have their own policies regarding what’s expected, but being paid more money depends on the following:

Does your contract say you’ll receive overtime pay?

If so, your employer must stick to this. However, some contracts specifically state that unpaid overtime may be required.

Is paid overtime an established practice at your workplace?

If your contract doesn’t mention it, but you or your colleagues have received overtime pay in the past, a court could decide it’s an ‘implied term’ of employment.

Do you get a fixed salary or are you paid by the hour?

If so, you have no automatic legal right to extra pay for extra hours. If you are paid by the hour, you must be paid for overtime.

Are you full- or part-time?

If full-time staff are paid overtime then part-time employees must receive extra payment too, but only for going over the hours that full-time staff work (unless your contract says otherwise).

Has your employer made a ‘collective agreement’ with a trade union?

This may set out specific details about overtime.

Do they offer ‘time off in lieu?‘

Some companies offer this instead. Again, check your contract.

Can I refuse to work overtime?

This depends on whether the overtime is compulsory or voluntary. Your contract should set out all the details of any overtime you’re obliged to work.

Employers should also ensure that overtime policies do not discriminate – directly or indirectly – against staff with outside responsibilities that can’t be rearranged at short notice, such as childcare or caring responsibilities.

What about minimum wage?

Your average pay rate must not fall below the National Minimum Wage (NMW). So if you work enough unpaid overtime to push your pay below the NMW, your employer should make up the shortfall.

Is there a limit to how many extra hours I can work?

Most workers over the age of 18 should not work more than 48 hours a week on average – including any overtime.

Under-18s must not normally work more than eight hours a day, or 40 hours a week.

What if I want to work more?

Over-18s can choose to opt out via a written agreement, which should just be between you and your employer – it can’t be part of an agreement with the entire workforce. You have the right to cancel this at any time. Under-18s cannot opt out of the 40-hour limit.

Can my employer make me work more?

No. If your employer tries to force you to work more than 48 hours a week, they’re breaking the law. You shouldn’t be treated unfairly, victimised, or put at any disadvantage for refusing to work more hours.

Can my overtime pay be factored into my holiday pay?

Your holiday pay used to only be calculated on your basic rate of pay, meaning if you regularly worked overtime, you’d financially lose out by going on holiday. But a new court ruling has challenged this, saying voluntary overtime should be included in your holiday pay. And you could even submit a backdated claim for the last three months.

Want to claim? Unions say you should contact them to talk through what you’re entitled to. If you don’t belong to a union, you can try talking to your employer directly. Or you can contact Acas for more information.