Working Overtime: What You Need To Know

If you’re a small business owner and need to ‘get the job done’, sometimes it may feel as though employee overtime is the only option. 

When you’re requesting that an employee work overtime, it must be a reasonable request. If it is unreasonable, your employee may refuse to work overtime. 

As a small business owner, it is vital that you consider whether employee overtime is the best option. 

Read on to better understand what you need to know about your employees working overtime.

What Is Overtime Work?

Overtime work refers to any time you work outside of your ordinary hours (for example, 9am-5pm). Your ‘ordinary hours’ should be set out in your Employment Contract.

However, as an employer, you don’t actually have to pay your employees for overtime work unless your Employment Contract says so. Overtime pay is usually more common with workers who get paid hourly rather than by salary.

Can Employees Be Made To Work Overtime? 

Yes, overtime work can either be voluntary or compulsory. Again, this depends on what your Employment Contract says.

Voluntary overtime means you would offer or make a request for your employee to work overtime, which they can refuse. However, compulsory overtime may be acceptable where the terms of your contract allow it.

So, if your contract details compulsory overtime, and your employee refuses to work overtime, this can amount to a breach of your Employment Contract.

Reasonable overtime can be achieved so long as the following are taken into consideration: 

• Any risk to your employees’ health and safety from working extra hours 
• Your employees’ personal situation, including their family responsibilities 
• Your workplace’s needs 
• If your employee is entitled to overtime pay or penalty rates for working extra hours 
• If your employee is paid at a higher rate on the understanding that they work overtime 
• If you gave your employee enough notice that they may have to work overtime 
• If your employee has already stated that they can’t ever work overtime 
• The usual patterns of work in your industry

If you fail to take into account the above, your request for your employee to work overtime may be unreasonable. 

What Else Should I Consider If My Employees Work Overtime?

If your Employment Contract has established that it is reasonable to request your employee to work overtime, that is great! However, there are still some other things you should consider. 

1. Higher Pay For Working Overtime 

Generally, you don’t have to pay your employees higher pay for their overtime work. However, if your Employment Contract stipulates that it is required, then you should do so. You should always check these terms so you are paying your employees the correct amount.

The important thing is to ensure that you are still paying them above minimum wage.

2. Managing Health And Safety

Working long hours can be taxing on your employees’ health and safety. 

The Health and Safety Executive encourages appropriate break times to ensure your employees health and safety. 

It is important to continuously monitor the work environment to best ensure your employees health and safety when working overtime. 

Can I Dismiss An Employee If They Refuse To Work Overtime?

If the overtime work is voluntary, then an employee should not be punished or discriminated against for refusing to do so.

However, if your Employment Contract stipulates that overtime work is compulsory, then refusal to work overtime can be seen as a breach of that contract. Depending on the penalties set out in your agreement, you may be able to dismiss an employee on these grounds.

Furthermore, if your employee has engaged in conduct that seriously breaches any of their other employee obligations, this can also give rise to dismissal.

However, you want to make sure you have fair grounds for dismissal – we’ve written more about unfair dismissal in the workplace.

Is Making Your Employee Work Overtime The Best Option? 

While having your employee work overtime might get the job done, it is important to assess the adverse impacts of working overtime. 

Working overtime can decrease productivity and efficiency. It can also lead to significant stress and take away from your employees work-life balance. 

Here, it is important to assess how often your employee works overtime. If they are working overtime as a one off, it is unlikely to impact your employee to a significant extent. However, if your employee works overtime persistently, even if it is reasonable, it is important to consider the impacts it may be having. 

Further, working overtime is sometimes associated with job dissatisfaction. Sustaining a positive work environment with high job satisfaction increases productivity and success for your business. 

It is vital that you are aware of the impacts associated with working overtime to ensure the sustainability and success of your employees and business. 

Summary 

If you need your employee to work overtime it is important you take the following steps: 

1. Take into consideration whether your Employment Contract allows you to offer overtime work
2. Ensure the continuous health and safety of your employee when working overtime
3. Determine whether your employee is entitled to a higher pay rate for working overtime 
4. Ensure your payment to them does not fall below minimum wage requirements

Need More Help? 

Reach out to our team for a free, no-obligations chat at [email protected] or 08081347754.

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