Overtime

Overtime is time worked beyond the hours set in someone's contract. In the UK there is no statutory right to extra pay for overtime — no automatic time-and-a-half or double time. What overtime pays, and whether it is voluntary, compulsory or guaranteed, comes from the employment contract.

The one legal floor

The only statutory rule on overtime pay is simple: a worker's average pay for the total hours worked in a pay reference period must not fall below the National Minimum Wage. An employer can lawfully pay overtime at the ordinary rate, or offer time off in lieu (TOIL) instead, if that is what the contract says. Many hospitality and care employers still choose to pay a premium for unsocial hours — that is a contractual choice, not a legal duty.

Limits and holiday pay

Two other rules touch overtime:

• Average weekly hours must stay within the 48-hour limit under the Working Time Regulations 1998, unless the worker has signed a voluntary opt-out.
• Overtime that is worked regularly enough to count as normal pay must be reflected in holiday pay for at least four weeks of the statutory entitlement.

Contract-driven — see Employment Rights Act 1996 for written terms; National Minimum Wage Act 1998 sets the pay floor; Working Time Regulations 1998 cap average weekly hours. ACAS publishes practical guidance.

Related terms

• 48-hour opt-out
• National Minimum Wage
• Statutory holiday entitlement

Working out the pay? The free overtime calculator applies the legal rates to your hours in seconds.