Are employees entitled to an extra hour's pay if they are working when the clocks go back?
This Sunday, 30th October, the clocks will go back an hour at 2am, changing from British Summer Time to Greenwich Mean Time. This can cause confusion if staff are required to work overnight.
Generally, it is for employers to decide how they will handle the situation, however in making their decision they will need to take into consideration:
- terms set out in the contract of employment
- the national minimum wage
- working time regulations
The Contract of Employment
Employers should check the wording of the contracts of employees who are working when the clocks go back. For example, a shift could be described as lasting “eight hours’ or it could be “from 10am to 6am.
Employers don’t necessarily have to pay employees for working an hour longer on a particular shift. A salaried employee is more likely than an hourly paid employee to be required to work extra hours without additional pay. However, as long as the employer is paying at least the national minimum wage, entitlement to payment will depend on the employer’s rules on overtime.
Some employers may choose to pay their employees for the extra hour, or to allow employees leave an hour early.
The National Minimum Wage
If an employee who is paid at or near the national minimum wage rate works an extra hour when the clocks go back, the employer must be careful that the extra hour does not take the employee’s pay below the relevant rate.
Check the Rules on Working Time
If additional hours are worked, employers should be sure that it does not lead to a breach of the rules on maximum night working hours.
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Minimum Wage Increase
Budget 2017 has made for interesting reading right across the board. A key point for small employers will be the increase to minimum wage.
From 1st January 2017, the national minimum wage will increase by 10 cent, from €9.15 per hour to €9.25 per hour. This announcement is in-line with the recommendation given by the Low Pay Commission earlier this year.
As of 1st January 2017, the following will be the applicable hourly minimum rates:
- Experienced adult worker: €9.25
- Over 19 with less than 2 years since beginning first job: €8.33
- Over 18 and less than 1 year since beginning first job: €7.40
- Aged under 18: €6.48
Some of the other budget announcements likely to affect small businesses include:
- Changes to USC rates
- Increase to the Earned Income Tax Credit for small business owners
- Entrepreneur Relief: a reduction to 10% in the capital gains tax
- 9% VAT rate for tourism to continue to apply
Thesaurus Software is holding a Free Budget Update Webinar on 18th October. If you are looking for a concise breakdown of how Budget 2017 will affect your business register here.
Bright Contracts - Employment Contracts and Handbooks
