Overtime working is a useful way of meeting business needs without the need to recruit and train additional staff. Employees often welcome the chance to boost their earnings, but this can become an invisible addition to staff costs if overtime working becomes a regular occurrence.
It is therefore advisable for employers to have an overtime policy that clearly sets out the terms under which overtime can be worked. XpertHR’s latest How to guide takes employers through the process of introducing and managing an overtime system.
Information that employers should include in an overtime policy includes:
- who is eligible for overtime – whether by job type, salary or grade;
- who can authorise overtime working, and the process for doing so;
- the rates of overtime pay; and
- arrangements for specific groups of workers, such as part-time workers, shift workers and night workers.
Employers are advised to monitor the level of overtime working, and could consider trying to reduce the extent of overtime using one or more of the methods listed in the guide.