Last Updated on Mar 12, 2020 by James W
If you’re an employer, then it’s important you know all about the legal rights your employees have and how you’re obliged to treat them. Overtime hours can sometimes be the cause of issues in the workplace, so it’s important that you have all of the fine details hashed out with your employees. This post will tell you everything you need to know about giving your employees overtime, so you can both be pleased with the arrangements and avoid any discrepancies. Read on to learn more:
The Definition of Overtime
All employees who work normal hours need to be fixed in their contracts of employment. If hours are worked that aren’t outlined in these contracts, then that is defined as overtime. This means overtime is any work performed outside the standard hours of a person’s employment. There are two different kinds: voluntary or compulsory. Compulsory will always be outlined in a person’s employment contract.
The Terms of Overtime
Employers don’t have to pay their employees for overtime unless it says so in their contract of employment. Bear in mind that the average pay for the number of hours worked should never fall below the National Minimum Wage.
You can’t force an employee to work over 48 hours per week, but they can opt out of this in a written contract if they so wish. As an employer, you have the right to stop an employee working overtime if it is not outlined in their contract. You need to do this across the company though; it can’t be discriminatory.
Some employers can give their employees Time off in Lieu instead of paying overtime. The terms of this is usually agreed by the employer and employee.
Overtime is not included when calculating holiday pay or any other kinds of pay, like maternity. However, overtime should be taken into account when it has been guaranteed and workers need to complete it to fulfil the hours outlined in their contracts.
Making Changes in the Working Environment
Any change in working conditions can change the rules related to overtime pay. Employers may sometimes need to alter conditions due to factors they cannot control. That being said; a change in working conditions without any agreement to this can mean action being taken by a worker with the help of a company like Ross Law Group. This is because this would be a breach of their contract. This agreement must be consistent with changes to your overtime policy.
Working Part Time
Employees who work part time should never be treated differently to staff you have on full time. Depending on the terms outlined in a part time workers contract, an employer will normally only pay for overtime if they work more hours than have been included in the contract of employment.
Now you know how to handle overtime with your employees, you can go ahead and put the necessary steps in place. This will stop you from getting into any trouble with a disgruntled employee, and should get you a reputation for being a reliable boss. Thanks for reading!