Introduce, manage and review an overtime system

Key points

  • Organisations may, from time to time, wish to ask employees to work overtime. Whether or not employees are obliged to agree depends on their contract of employment.
  • An employer that is introducing an overtime system should consider issues such as the process for requesting and authorising overtime and arrangements for overtime pay.
  • The employer should also consider whether or not the overtime system should form part of employees' contracts.
  • Employers need to take into account their duties under the Working Time Regulations 1998 when introducing overtime working.
  • Organisations may need to review their overtime arrangements, for example the amount worked, the payment rates, or the employees eligible for payment.
  • Employers should bear in mind recent case law on the treatment of overtime in calculating holiday pay.

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