Overtime

In the United Kingdom, overtime refers to work performed by an employee beyond their normal working hours, as agreed upon in their contract of employment or company policies. This can include extra hours worked on weekdays, evenings, weekends, bank holidays, or any other time outside of the standard working day.

Overtime is typically paid at a higher rate than the employee’s regular hourly wage, with the exact rate varying depending on the employer and industry. The purpose of overtime is to enable employees to complete tasks that cannot be completed within their normal working hours, such as meeting deadlines or dealing with unexpected workload increases.

There are different types of overtime, including:

• Voluntary overtime: This is when an employee chooses to work extra hours beyond their standard shift.
• Compulsory overtime: This is when an employer requires an employee to work extra hours due to operational needs.
• Guaranteed overtime: This is a contractual agreement where an employer guarantees a certain number of hours of overtime per week or month.

In the UK, employers are required by law to pay employees for all hours worked, including overtime. The National Minimum Wage Act 1998 and the Working Time Regulations 1998 set out the rules for paying employees for overtime work.

It’s worth noting that while overtime can be beneficial for employees in terms of extra earnings, it can also have negative effects on their work-life balance and overall well-being if not managed properly. Employers are therefore advised to consider the impact of overtime on their employees’ health and wellbeing when implementing overtime policies.

AceRota’s automated overtime tracking feature ensures accurate recording of OT hours worked by staff, helping to prevent under- or over-payment and reducing administrative burdens on managers. It also enables more efficient planning and forecasting, allowing for proactive measures to be taken to avoid excessive overtime in the first place.