Overtime payments

A. There is not a legal entitlement to a higher rate of pay than usual for overtime worked. However, your member’s employer should set out in the terms and conditions of employment for staff the rate of pay offered for overtime work.

It is quite common for employers to offer a higher rate of pay when they wish to encourage workers to undertake the additional work. And although there is no legal right to a higher rate of pay, the right to the National Minimum Wage will still apply and so you should ensure your member is not receiving below this rate for the extra hours worked. 


Employers can also offer time off in lieu for overtime worked. This is when time off work is given which is equivalent to time worked as overtime. 


Acas, the employment advisory service, advises in its recent guidance on overtime that there should be a written agreement for taking time off in lieu. The agreement should confirm when leave can be taken, the authorisation process for booking the leave and what happens if the contract ends before accrued overtime is used.

www.acas.org.uk/index.aspx?articleid=4249