Overtime pay

Sometimes you’re strapped for cash and ask your boss for overtime. But do you really know your rights when it comes to working more hours than usual? Will you even get paid extra? Since you clicked on this article, we’re guessing no. Don’t worry, The Mix is here with the facts on overtime pay.

Should I get overtime pay?

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

Does your contract say you’ll receive overtime pay?

If so, your employer is legally obliged to stick to the overtime pay rate set in your contract of employment. However, some contracts specifically state that unpaid overtime may be required. Others might have guaranteed overtime written into them. You can learn more about employment contracts in this article.

Has your company established a practice of getting employees to work overtime?

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. This means that, although it’s never been explicitly agreed, it’s become an implied part of your job because it’s been done repeatedly. 

Fixed-salary vs Working by the hour

If you have a fixed salary you have no automatic legal right to extra pay for extra hours. On the other hand, if you’re paid by the hour then overtime is a given. But we should mention that your overtime pay rate doesn’t have to be any higher than your standard hourly rate.

Are you full or part-time?

Either both get overtime pay, or none do. However, this only holds water as a part-time employee if you’re 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. Learn more about trade unions in this article.

Do they offer ‘time off in lieu?’

Some companies offer extra time off instead of working out an overtime pay rate. Our advice would be to check your contract to see what your company provides.

Can I refuse to work overtime in the UK?

If the overtime is voluntary you can refuse the work. If it’s compulsory, unfortunately you can’t. But don’t just take our word for it. Be sure to check out your contract. It 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. These include childcare or caring responsibilities, among others.

What about minimum wage?

Your average pay rate can’t fall below the National Minimum Wage. So if your hours of overtime worked push your pay below the NMW, your employer should make up the difference. If you want to find out more about the minimum wage, you can read this article.

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

Most workers over the age of 18 legally can’t work more than 48 total hours a week on average – including any overtime. Under-18s have slightly less hours. They can only work eight hours a day, or 40 hours a week. For more info on working hours and breaks, click here.

What if I want to work more overtime?

Over-18s can choose to opt out via a written agreement between you and your employer – it can’t be part of an agreement with the entire workforce. This means that, as long as everyone consents, you can work more than 48 hours a week. But you do have the right to cancel this at any time. Under-18s, however, cannot opt out of the 40-hour limit.

Can my employer make me work more overtime hours?

No. If your employer tries to force you to work more than 48 hours a week including overtime, they’re breaking the law. What’s more, you shouldn’t be treated unfairly, victimised, or put at any disadvantage for refusing to work more hours. So if you feel like any of this is happening to you, it might be worth having a chat with your employer. If you need more info, check out the government’s advice on overtime.

Can my holiday pay include my overtime pay?

The simple answer is yes. A 2019 court ruling found that voluntary overtime should be included in your holiday pay. Plus, you could even submit a backdated claim for the last three months. To find out more about this ruling and holiday pay, click here.

Want to claim? You should contact your union 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 reach out to Acas for more information.

Problems at work? Take a look at The Mix’s workers’ rights and pay resources here. Alternatively, ACAS offer free support with work related issues, call them on 0300 123 1100.