Definition
Additional hours worked beyond an employee's contracted or normal working hours. Overtime may be voluntary or mandatory, paid or unpaid, depending on the employment contract. There is no UK statutory right to overtime pay, but total pay must not fall below the National Minimum Wage.
UK Context
UK employers must ensure that overtime does not cause average pay to fall below the National Minimum Wage when calculated over the pay reference period. The Working Time Regulations 1998 cap average working time at 48 hours per week unless the employee has opted out in writing.
Best Practices
- Clearly define overtime arrangements, rates, and approval processes in the employment contract
- Monitor working hours to ensure compliance with Working Time Regulations and employee wellbeing
- Consider offering TOIL as an alternative to paid overtime to manage costs and promote work-life balance
Frequently Asked Questions
Do employers have to pay for overtime?
There is no legal requirement to pay a premium rate for overtime. However, the employment contract may specify overtime pay rates. Regardless, total hours worked must not reduce hourly pay below the National Minimum Wage.
Can an employer force an employee to work overtime?
Only if mandatory overtime is specified in the employment contract. Even then, the employer must respect the 48-hour average weekly limit under the Working Time Regulations unless the employee has signed an opt-out agreement.