Overtime pay
In the United Kingdom, overtime pay refers to additional remuneration paid to an employee for working hours beyond their normal contracted working time, as specified in their employment contract or collective bargaining agreement.
According to the Working Time Regulations 1998 (WTR), which governs working time and rest periods in the UK, overtime is defined as any work done outside of the standard working hours agreed upon by the employer and employee. This can include:
- Work performed on weekends, evenings, or bank holidays
- Overtime worked during a period of annual leave or other paid time off
- Work carried out at an accelerated pace or with increased intensity
Overtime pay is typically calculated as a percentage of the employee’s normal hourly rate, and this percentage is usually agreed upon in advance by the employer and employee. The overtime premium can vary depending on the industry, company, or collective bargaining agreement.
In general, employees are entitled to receive at least 1.5 times their normal hourly rate for each hour worked beyond their standard working hours. However, this can be negotiated up to a maximum of double time pay in some cases.
It’s worth noting that employers have a duty to provide employees with adequate notice and consultation before requiring them to work overtime. Employees also have the right to refuse overtime requests if they are not reasonably requested or if they would cause undue hardship.
In terms of rotas, overtime pay is often used as an incentive for employees to take on additional shifts or cover shortfalls in staffing levels. However, it’s essential to ensure that any overtime arrangements comply with relevant employment laws and regulations to avoid disputes or potential claims from employees.
AceRota’s automated overtime tracking feature ensures accurate calculation and recording of overtime hours worked by staff, thereby facilitating timely payment and compliance with relevant employment laws.
