Overtime undervalued
Question
I was told by my employer that when I worked overtime I'd be paid at time-and-a-half, but it turns out they're only paying me at the normal rate. What are my rights?
Answer
There is no legal obligation for an employer to pay higher rates for overtime, although your average pay rate must not fall below the National Minimum Wage. Your rates and entitlements for overtime should be set out in your contract of employment. If you work part-time you might not be entitled to overtime rates until you have worked the hours of a full-time week unless otherwise stated in your contract.
If your employer does not make payments as stated in your contract, and there is no specific clause in the contract allowing them to do this, then you should be entitled to challenge them.
It's normally best to do this informally at first - the under-payment may just be a mistake. If that doesn't work, then your trade union (if you belong to one) is probably the best place to go.
You can also find useful information about what to do if your contract has been breached, including how to submit a formal grievance, from organisations such as Citizens Advice Bureau (CAB) and Directgov. In addition, Acas have a helpline you can call on 08457 474747.
If your employer mentions overtime pay rates that are higher than those set out in your contract, it's always worth asking them to confirm this in writing to avoid any confusion about what you can expect to be paid.
If you'd like to talk face-to-face with an advisor about this issue your local Citizens Advice Bureau (CAB) will be able to help.
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Updated: 09/02/2010
Question answered by CAB
