Overtime working - how much can your employees do?

Getting employees to work overtime during busy periods is a great way to combat increased workload demands using your existing employees. But how much overtime can you legally require your employees to work and should you have to pay them extra for it? We take a look at what is required to keep you covered.

Overtime

The number of hours an employee is required to work a week will be included in their contract and if an employee works over this it is usually considered overtime. If you do require employees to work overtime during busy periods, this must be stated in their contract of employment. Within two months of commencing work, an employee must be provided with a contract of employment.

How much overtime can employees work?

The Organisation of Working Time Act 1997 states the maximum working week is 48 hours and this will include all overtime or second employment. The 48-hour working week can be averaged out:

• 4 months - for most workers
• 6 months - for employees working in: security industries, hospitals, prisons, gas/electricity, airport/docks, agriculture and employees in businesses which have peak periods at certain times of the year such as tourism
• 12 months - for all employees who entered into an agreement with their employer which is approved by the Labour Court.

Do I have to pay employees for working overtime?

Employers are under no obligation to pay employees for overtime worked as long as they ensure that the average pay for total hours worked does not go below minimum wage. Many employers do pay higher rates of pay for overtime or may give employees time off in lieu for hours worked overtime.

If you do require employees to work overtime you must ensure that this is clearly stated in their contract of employment. If an employee is paid overtime, this should also be included, stating overtime rates of pay and how these are calculated.

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