There are actually number of different types of overtime to be aware of, these include:
Compulsory overtime
This is when an employer specifies overtime hours as part of the employment contract. Any overtime required as compulsory must comply with the Working Time Regulations directive, of which we’ll talk more about later.
Non-guaranteed overtime
According to ACAS:
'Non-guaranteed overtime does not have to be offered by an employer. However, when it is offered, the worker must accept and work it.'
For example, if an employer knows that their business will be busier at certain times of the year, but does not know how much overtime they will need. The employer should include in the employment contract that workers will have to work extra hours during these busy periods.
Voluntary overtime
With voluntary overtime you can ask an employee to work overtime hours, but they are not obliged to accept it. This is because there is nothing in the contract stipulating that you offer overtime, or that the employee has to accept it.
Overtime pay
In the UK you are not legally obliged to pay your employees for overtime. However, if your employees do work overtime, you have to ensure that their total pay for their time does not fall below minimum wage.
Ultimately the decision to pay overtime is up to you as an employer. If you do choose to pay overtime, you can choose the amount, so long as it matches or exceeds the national minimum wage.
Time off in lieu (TOIL)
Instead of paying employees for their overtime, some employers take the decision to give back these hours as time off in lieu (TOIL).
If you wish to offer this to your employees, you’ll need to come to an agreement with your employee and agree on terms. These will include how many days can be accrued and when the time off should be taken by.
