Overtime pay

Rachel Sharp Editor's message: Meeting short-term business needs through the use of overtime working allows an organisation to take advantage of the flexibility of the workforce without the need to take on additional staff. Employees who work overtime do not have an automatic right to any additional pay; this will depend on the terms of their contract of employment, or on custom and practice. But where there is a premium attached to overtime working, employees can see this as a welcome enhancement to their basic salary.

Employers usually define rates of overtime pay as a multiple of regular or normal pay; other methods include a set hourly rate for overtime or a higher salary to recognise an element of overtime.

Employers should also be aware of the implications of recent case law on the issue of how overtime should be treated in the calculation of holiday pay.

Rachel Sharp, HR practice editor

Latest items in Overtime pay

  • Basic pay and benefits

    Type:
    Employment law manual

    Updated to include revised advisory fuel rates, effective from 1 September 2016.

  • Overtime arrangements and pay survey 2016

    Date:
    11 August 2016
    Type:
    Survey analysis

    We examine overtime working arrangements and pay rates in our 2016 survey.

  • Managing overtime working

    Date:
    11 August 2016
    Type:
    Editor's choice

    XpertHR's survey of overtime arrangements and pay looks at typical overtime payment levels and how organisations manage overtime working.

  • Holiday pay

    Date:
    13 July 2016
    Type:
    Editor's choice

    Workers have a statutory entitlement to 5.6 weeks' leave a year, during which they are entitled to be paid their normal pay. Recent case law developments have changed what may be regarded as "normal" and employers must now consider whether or not overtime and commission should be included in holiday pay.

  • Ambulance workers to receive holiday pay for "overruns"

    Date:
    8 March 2016
    Type:
    News

    Ambulance workers in four counties will receive backdated holiday pay after a victorious claim for "overrun" payments.

  • Cases on appeal

    Date:
    22 February 2016
    Type:
    Law reports

    Cases on appeal provides news on key case law developments that are expected.

  • Police will receive overtime in holiday pay

    Date:
    4 January 2016
    Type:
    News

    The Police Federation of England and Wales has agreed to include overtime in holiday pay for officers from this year.

  • Holiday pay: Northern Ireland Court of Appeal decision suggests regular voluntary overtime should be included

    Date:
    26 June 2015
    Type:
    Law reports

    The Northern Ireland Court of Appeal has held that there is no reason in principle why voluntary overtime should not be included in holiday pay, if it is normally carried out and is an "appropriately permanent feature" of the worker's remuneration.

  • Shop workers could launch claims over Sunday overtime decision

    Date:
    14 May 2015
    Type:
    News

    Retailer Next could be facing claims of unfair dismissal and age discrimination after it moved all of its employees to new contracts.

  • Holiday pay: Regular, non-guaranteed overtime pay to be included in holiday pay calculation

    Date:
    2 January 2015
    Type:
    Law reports

    In Bear Scotland Ltd and others v Fulton and others; Hertel (UK) Ltd v Woods and others; Amec Group Ltd v Law and others [2015] IRLR 15 EAT, the EAT held that payment in respect of overtime that the worker is obliged to work when it is available, but that is not guaranteed by the employer, constitutes part of the worker's normal remuneration and as such should be included in the computation of the worker's holiday pay.