UK Overtime Pay Rules for Employers

overtime pay

Overtime plays a central role in UK workforce planning, allowing employers to manage fluctuations in demand while offering workers opportunities to earn additional income. Despite its widespread use, the rules governing overtime pay are regularly misunderstood. Unclear policies, inconsistent practices and incorrect assumptions about legal entitlements frequently lead to disputes, burnout risks and potential employment law claims.

This guide provides a comprehensive explanation of overtime pay rules under UK employment law. It covers what counts as overtime, the different types of contractual and non-contractual overtime, whether pay is legally required, how overtime rates should be calculated, how TOIL (time off in lieu) fits into the framework, and how employers must comply with minimum wage and working time limits. It also examines when overtime must be reflected in holiday pay calculations and highlights best-practice approaches for setting clear, lawful overtime policies.

The aim is to give employers clarity on their obligations, equip HR teams with legally accurate guidance, and ensure workers receive correct and transparent compensation for additional hours worked.

 

Section A: Understanding Overtime in UK Employment Law

 

Overtime is not defined in a single UK statute, but in practice it describes hours worked over and above a worker’s normal contractual hours. Understanding how overtime arises, how it should be classified and the extent to which it can be required is essential to applying overtime pay rules correctly and avoiding disputes over entitlement and pay.

For most employers, the starting point is the contract of employment or statement of employment particulars, which should specify normal working hours and any provisions about working additional hours. Where contracts are silent or ambiguous, employers can find themselves exposed to grievances, arguments over implied contractual terms and, in some cases, claims for unlawful deduction of wages if workers believe they have not been paid for overtime they were entitled to.

 

What counts as overtime?

 

Overtime is generally any time the worker spends working beyond their normal working hours, whether that work is carried out at the start or end of a shift, during rest days or on additional shifts. Normal working hours are usually defined by the contract, for example “40 hours per week” or by a pattern such as “four shifts on, four shifts off”. Where contracts set a range, such as “35–40 hours per week”, hours beyond that range will typically be treated as overtime.

Overtime can arise in a wide range of scenarios, for example where a worker:

  • stays late to complete urgent work or meet a deadline
  • comes in early to prepare for an event, opening or shift change
  • covers an additional shift due to staff absence or turnover
  • works extra days during periods of high customer or client demand.

 

Whether these hours are classed as overtime for pay purposes depends on the agreement between the parties. Some contracts state that a certain amount of extra time is included within salary, particularly for more senior or salaried roles. However, where workers are routinely asked to work beyond their stated hours, and especially where they are hourly paid, there may be an expectation and, over time, an argument that payment for those hours has become an implied contractual term through custom and practice.

 

Types of overtime

 

From an employment law perspective, it is helpful to distinguish between the main types of overtime, as the legal consequences and expectations differ. Broadly, overtime in UK workplaces falls into three categories: voluntary, guaranteed and non-guaranteed.

Voluntary overtime is overtime that the worker is free to accept or decline. The employer is not obliged to offer extra hours and the worker is not obliged to work them. Voluntary overtime is common where employers need additional cover from time to time and wish to offer it first to existing staff before using agency workers or casual labour. Even where overtime is voluntary, if it is worked with sufficient regularity and consistency, it may still need to be reflected in holiday pay calculations as part of normal remuneration.

Guaranteed overtime is overtime that the employer is contractually required to provide, and the worker is contractually required to work, when it is available. Contracts that guarantee a minimum level of overtime, or specify regular overtime as part of the working pattern, create a clear obligation on both sides. This type of overtime is more likely to be treated as part of normal pay for the purposes of holiday pay and may have implications for calculating other entitlements.

Non-guaranteed overtime sits between these two positions. The employer is not obliged to offer additional hours, but the contract states that where overtime is offered, the worker must work it. Non-guaranteed overtime often appears in contracts that require flexibility to meet operational peaks, for example in logistics, manufacturing or healthcare. As with voluntary overtime, where non-guaranteed overtime is worked regularly, it can form part of normal remuneration and affect holiday pay rules.

Classifying overtime correctly helps employers to understand when they can insist on additional hours, when workers remain free to refuse, and how overtime should be treated for pay and holiday purposes.

 

When can employees be required to work overtime?

 

Employees and workers can only be required to work overtime if there is a clear legal basis for this. In most cases, this will come from an express term in the contract of employment that:

  • requires the individual to work additional hours when reasonably requested, or
  • sets out a working pattern that already includes overtime as part of the normal role.

 

Where there is an express overtime clause, employers must still exercise it reasonably, taking into account health and safety duties, the limits imposed by the Working Time Regulations, and any personal circumstances that might be relevant. Repeatedly insisting on excessive overtime, even where contractually permitted, may create risks around stress, discrimination or constructive dismissal if the overall impact on the worker is unreasonable.

If the contract does not contain an overtime clause, or is vague about additional hours, it will be difficult for an employer to insist on overtime without agreement. Attempts to discipline workers for refusing overtime in such circumstances may give rise to grievances or claims. In practice, many workers voluntarily agree to work extra hours where they are paid appropriately or can take TOIL at a later date, but employers should not assume a right to demand overtime without a contractual foundation.

Even where contractual terms allow overtime to be required, employers must ensure that overtime does not push average weekly working hours above the statutory 48-hour limit unless the worker has signed a valid opt-out or an exemption applies. They must also ensure that workers continue to receive their minimum rest breaks and rest periods.

Section A summary: Overtime arises when workers exceed their normal contractual hours, but how that overtime is classified and managed depends on the underlying contractual arrangements. Distinguishing clearly between voluntary, guaranteed and non-guaranteed overtime, and ensuring that any requirement to work extra hours is grounded in express terms and applied reasonably, is central to lawful and sustainable overtime practices.

 

Section B: Overtime Pay Rules in UK Law

 

Overtime pay is one of the most frequently misunderstood aspects of UK employment law. Many workers assume that all overtime must be paid, and often at an enhanced rate, but this is not the case. There is no statutory right to overtime pay or to premium rates for working additional hours. Instead, entitlement to payment depends on contracts, policies, collective agreements and established workplace practices. Understanding how these rules interact is essential for preventing disputes and ensuring lawful pay arrangements.

Where employers fail to define overtime pay rules clearly, they risk unlawful deduction of wages claims, grievances, and inconsistent application across teams. Equally, where workers believe overtime is part of their normal role without additional compensation, this can lead to morale issues and higher turnover. Well-defined overtime pay policies protect both parties and create predictability in workforce planning.

 

Is overtime pay legally required?

 

There is no legal requirement in the UK to pay workers for overtime unless the contract, policy or collective agreement provides for it. The law does not prescribe any minimum overtime rate, nor does it mandate that overtime must be paid at a higher rate than normal working hours. Whether overtime is paid, unpaid, or compensated through TOIL is a matter of agreement.

However, where a contract states that overtime is paid, the employer must honour this obligation. Failing to pay overtime that is contractually due can amount to an unlawful deduction from wages under the Employment Rights Act 1996. Even where the contract is silent, if the employer has consistently paid overtime for a long period, this can create an implied contractual term through custom and practice, meaning the employer may become legally obliged to continue paying it.

The situation differs for hourly-paid and salaried workers. Hourly-paid staff typically expect that any extra hours worked will be paid at their normal hourly rate unless agreed otherwise. For salaried workers, additional hours may be considered part of the job unless the contract specifies payment for overtime or allows for TOIL. Employers should avoid assuming that salaried staff must work unlimited additional hours; excessive expectations risk claims around breach of trust and confidence or constructive dismissal.

 

How is overtime pay calculated?

 

Where a contract or policy stipulates overtime pay, the employer must follow the terms precisely. Overtime pay may be calculated in several ways, including:

  • payment at the worker’s normal hourly rate
  • enhanced rates, such as time-and-a-half or double-time
  • different rates for evenings, weekends or bank holidays
  • a fixed allowance for working additional hours.

 

Enhanced overtime rates are common in retail, hospitality, manufacturing, emergency response, and transport sectors, although they are not legally required. If the employer offers a higher overtime rate as an incentive, the terms must be clear and applied consistently to avoid claims of unfair treatment.

Overtime pay should normally be included in the pay reference period in which the work was completed, unless payroll arrangements necessitate payment in the following cycle. The employer must also ensure that all payments are properly itemised on the worker’s payslip, in accordance with statutory payslip requirements.

Where overtime is irregular but frequent, employers should ensure payroll systems correctly record hours to avoid accidental underpayment. Consistent underpayment of overtime, even where small, can accumulate into significant arrears and attract enforcement action.

 

Overtime for hourly-paid vs salaried workers

 

The rules around overtime pay differ depending on whether the worker is hourly paid or salaried. For hourly-paid workers, overtime is generally paid because there is a direct link between hours worked and pay. If an hourly-paid worker is required to work extra time, and there is no agreement that these hours are unpaid or compensated through TOIL, the worker will normally be entitled to payment at least at their normal hourly rate.

For salaried workers, entitlement depends heavily on contractual wording. Many salaried contracts contain clauses stating that additional hours are expected without further pay where necessary to fulfil the duties of the role. However, these clauses must be interpreted reasonably. Employers cannot require unlimited additional hours, and they must still comply with minimum wage laws when average pay is calculated across all hours worked.

Where salaried workers frequently work substantial overtime, employers should consider whether compensation through overtime pay, flexible working arrangements or TOIL is appropriate. A pattern of significant unpaid overtime, especially if imposed rather than agreed, increases risks related to stress, burnout and attrition, as well as potential legal challenges.

Section B summary: Overtime pay is not automatically required under UK law, and entitlement depends on what has been expressly or implicitly agreed. Clear, well-designed contractual and policy provisions are essential to ensure workers understand when overtime is paid, at what rate and under what conditions, helping to prevent pay disputes and maintain lawful pay practices.

 

Section C: TOIL (Time Off in Lieu) vs Overtime Pay

 

Time off in lieu (TOIL) is a common alternative to paying workers for overtime. Instead of receiving additional pay, workers take paid time away from work at a later date to compensate for the extra hours worked. TOIL is frequently used in sectors with fluctuating workloads, especially for salaried staff whose roles require periodic peaks in operational demand.

Because TOIL is not regulated by a specific UK statute, its lawful use depends entirely on clear agreement, transparent rules and consistent implementation. Poorly designed TOIL practices can give rise to allegations of unfair treatment, breaches of minimum wage law, or unlawful deduction of wages where workers believe their additional hours have not been properly recognised.

This section explains the conditions under which TOIL can be used, the key elements of a compliant TOIL framework, and the legal risks employers must manage when relying on TOIL instead of overtime pay.

 

When can TOIL be used?

 

TOIL can be used wherever the employer and worker agree that extra hours will be compensated with time off rather than additional pay. It is particularly common where:

  • the worker is salaried and has fluctuating or project-based workloads
  • the employer cannot sustain overtime pay costs but still requires flexibility
  • the organisation values work–life balance and wishes to offer flexibility in return for peak-period effort
  • operational patterns make it easier to release staff for quieter periods after busy cycles.

 

TOIL should ideally be formalised in a staff handbook or workplace policy. Without clear rules, disagreements often arise over how much TOIL has been accrued, when it may be taken, or whether unused TOIL expires. A written policy reduces ambiguity and protects both parties from misunderstandings.

Employers should not assume that salaried status alone permits unlimited unpaid overtime in exchange for TOIL. Unless explicitly agreed, workers may reasonably expect compensation for working beyond their contractual hours. Clarity is critical.

 

Designing compliant TOIL arrangements

 

Because TOIL is not legally defined, the detail of the arrangement is extremely important. Employers should implement TOIL rules that address the following:

  • Accrual: specify how TOIL is earned, for example hour-for-hour or at an enhanced ratio for antisocial or inconvenient hours.
  • Approval: require managers to approve TOIL both at the time the overtime is worked and at the time the leave is taken.
  • Expiry: define whether TOIL must be used within a set time period (e.g., three or six months) and what happens if it is not.
  • Record-keeping: keep accurate logs of hours worked and TOIL accrued to avoid disputes or inconsistencies between teams.
  • Carry-over rules: make clear whether TOIL can be carried into the next leave year and how much may be carried over.

 

Organisations with complex shift patterns or seasonal demand spikes should ensure that TOIL systems do not create operational burdens later in the year. Balanced planning avoids situations where large amounts of TOIL accumulate and cannot be honoured without disrupting service delivery.

 

Legal risks with TOIL

 

Although TOIL can be a lawful and effective tool, employers must ensure they do not breach overriding statutory obligations when operating TOIL schemes. The main risks arise in the areas of minimum wage compliance, working time limits and unlawful deductions from wages.

Minimum wage: Workers must receive at least the National Minimum Wage (NMW) or National Living Wage (NLW) for each pay reference period. If TOIL is used instead of pay, employers must verify that the worker’s total pay for all hours worked in that period does not fall below the relevant statutory minimum. A TOIL system that pushes a worker’s average hourly pay below the legal threshold is unlawful.

Working time limits: Under the Working Time Regulations, workers cannot exceed an average of 48 hours per week across the applicable reference period unless they have signed a valid opt-out. Because TOIL often arises in peak periods, employers must check that overtime does not push workers beyond legal limits. Rest breaks and daily/weekly rest periods must also be maintained.

Unlawful deductions: If a worker accrues TOIL but is later denied the opportunity to take it, or if TOIL is lost due to poor record-keeping or inconsistent management, the worker may claim that the employer has failed to compensate them for hours worked. This can form the basis of an unlawful deduction of wages claim.

To minimise risk, employers should ensure TOIL policies are clear, consistently applied and well-documented, with thorough monitoring to ensure compliance with pay and working time obligations.

Section C summary: TOIL is a flexible alternative to overtime pay, but it requires clear rules to remain lawful. Employers must ensure that TOIL arrangements do not cause minimum wage breaches, infringe working time requirements or result in unpaid work. Well-designed TOIL policies provide clarity, mitigate legal risks and support fair and transparent compensation for additional hours worked.

 

Section D: Compliance Rules Affecting Overtime

 

Overtime does not operate in isolation. Even where employers and workers freely agree overtime pay terms or TOIL arrangements, these must still comply with overriding statutory frameworks. Three areas of employment law are particularly important: the National Minimum Wage (NMW) and National Living Wage (NLW) rules, the Working Time Regulations 1998 (WTR), and the legal requirements governing holiday pay. Failure to consider these obligations can result in underpayment, enforcement action, or unlawful deduction claims. This section sets out the key compliance requirements employers must meet when workers perform overtime.

 

National Minimum Wage compliance

 

Under the National Minimum Wage Act 1998, nearly all UK workers are entitled to a minimum hourly rate, which varies depending on age and apprenticeship status. Employers must ensure that the total pay received by a worker in each pay reference period meets or exceeds the applicable NMW or NLW rate when averaged across all hours worked, including overtime.

Where a worker performs additional hours without receiving overtime pay—such as under certain TOIL arrangements—there is a risk that their average hourly pay could fall below the statutory minimum. This is unlawful, regardless of any mutual agreement to defer compensation through TOIL.

The pay reference period is typically aligned with the worker’s pay cycle—weekly, fortnightly or monthly—and cannot exceed one calendar month. Employers must ensure robust systems are in place to record hours worked and verify compliance with NMW/NLW obligations, particularly where overtime patterns fluctuate.

NMW breaches can lead to:

  • arrears of underpaid wages owed to the worker
  • financial penalties of up to 200% of the arrears (capped by government limits)
  • naming and shaming by HMRC for serious non-compliance.

 

Accurate hour-by-hour records, including overtime and TOIL accrual, are essential for demonstrating compliance in the event of investigation or challenge.

 

Working Time Regulations

 

The Working Time Regulations 1998 impose limits on the number of hours workers can legally work and require employers to safeguard workers’ health and safety through rest entitlements. Overtime must be managed in a way that ensures these obligations are met.

The principal rule is that workers must not work more than an average of 48 hours per week over the relevant reference period, typically 17 weeks. Some sectors or collective agreements may operate extended reference periods of up to 52 weeks. Workers aged 18 or over may voluntarily opt out of the 48-hour limit, but employers cannot pressure or penalise workers for refusing to sign an opt-out.

Working time includes:

  • contractual hours
  • paid overtime
  • unpaid overtime that the employer requires or expects
  • time spent working during on-call duties.

 

Working time does not include unpaid overtime that is genuinely voluntary, irregular and not required by the employer. Employers should monitor overtime closely to avoid inadvertently causing workers to exceed legal limits or miss statutory rest breaks and rest periods.

Breaches of the WTR can lead to improvement notices, enforcement action by the Health and Safety Executive, or tribunal claims where workers have been denied rest entitlements. Excessive overtime also increases risks of fatigue-related errors and workplace accidents, reinforcing the need for careful monitoring.

 

Overtime and holiday pay rules

 

Case law from UK and European courts has established that holiday pay must reflect a worker’s “normal remuneration”, not just their basic contractual pay. Where overtime is worked regularly—whether voluntary, guaranteed or non-guaranteed—it may need to be included when calculating holiday pay for the four weeks of annual leave derived from EU law.

Key principles include:

  • Regular overtime that is intrinsically linked to the job must be reflected in holiday pay.
  • Irregular or occasional overtime is less likely to be included but may still be relevant depending on frequency and pattern.
  • Enhanced overtime rates may be included if they form part of normal remuneration.

 

Employers typically calculate holiday pay based on an average of the worker’s earnings over the preceding 52 weeks. Periods of zero earnings are excluded from the calculation, extending the reference period backward as necessary.

Failure to include eligible overtime in holiday pay calculations can lead to unlawful deduction of wages claims, claims for breach of statutory rights, or grievances relating to underpayment. Employers should audit overtime patterns and payroll systems regularly to ensure compliance with the evolving case law on normal remuneration.

Section D summary: Overtime arrangements must align with minimum wage law, protect workers from excessive hours under the Working Time Regulations and comply with legal requirements around holiday pay. Employers who fail to integrate these obligations into their overtime systems risk significant financial and legal consequences. Effective monitoring of hours worked and robust payroll processes are essential to maintaining compliance.

 

Section E: Agreeing, Recording and Managing Overtime

 

Clear agreements and consistent management practices are essential for ensuring that overtime arrangements remain lawful, transparent and sustainable. Ambiguity over compensation, inconsistent approval processes or poor record-keeping frequently contribute to disputes over entitlement and pay. Employers who invest in well-structured overtime policies and accurate monitoring systems are better able to manage cost, compliance and workforce morale.

This section sets out how employers should document overtime rules, the importance of accurate records, and practical steps for implementing best-practice overtime management across the organisation.

 

Setting overtime rules in contracts and policies

 

A well-drafted employment contract or staff handbook should clearly explain how overtime is managed. Key elements include:

  • Whether overtime is voluntary or compulsory: clarify if workers can refuse overtime and under what circumstances additional hours may be required.
  • Pay entitlements: specify whether overtime is paid, at what rate, and whether enhanced rates apply for evenings, weekends or bank holidays.
  • TOIL arrangements: set out accrual, approval, expiry and carry-over rules to avoid disputes over how TOIL is earned or used.
  • Approval processes: define who can authorise overtime and how requests should be made, ensuring fairness and consistency.
  • Monitoring responsibilities: identify who is responsible for tracking hours worked and ensuring compliance with working time limits and minimum wage obligations.

 

Where employers rely heavily on overtime, more detailed policies may be appropriate. These may include provisions on managing seasonal demand, restrictions on excessive overtime, fatigue-related risk management and fair distribution of overtime opportunities across teams.

 

Record-keeping requirements

 

Accurate record-keeping is crucial for compliance with the National Minimum Wage, the Working Time Regulations and the law on itemised payslips. Employers should keep clear records of:

  • all hours worked, including overtime
  • whether the overtime was voluntary, required or part of the contractual pattern
  • overtime payments or TOIL accrued
  • TOIL taken and remaining balances
  • opt-outs from the 48-hour working week (where applicable).

 

Good records protect employers in the event of HMRC investigation, HSE enforcement action or employment tribunal claims. They also support internal fairness by ensuring that overtime is allocated and compensated consistently.

Electronic time-tracking systems, payroll integrations and shift management tools can streamline compliance, but employers must ensure that any systems used are accurate, accessible and regularly audited.

 

Employer best-practice checklist

 

The following practices support lawful, fair and efficient overtime management:

  • Ensure overtime clauses are clearly drafted and communicated to all workers.
  • Define pay rates, TOIL terms and overtime approval processes in writing.
  • Monitor hours worked to prevent breaches of the Working Time Regulations.
  • Verify that overtime or TOIL arrangements do not cause minimum wage breaches.
  • Include regular overtime in holiday pay calculations where required.
  • Use clear, consistent record-keeping systems to track overtime and TOIL.
  • Review overtime levels regularly to address health, safety and wellbeing risks.
  • Apply overtime opportunities fairly to avoid claims of discrimination or unfair treatment.

 

Employers who embed these practices into their HR and payroll frameworks reduce legal risk, foster trust with their workforce and maintain greater operational control during peak periods.

Section E summary: Clear rules, transparent record-keeping and fair management processes are the foundation of lawful overtime systems. Employers who document entitlements carefully, monitor hours consistently and maintain a fair approach to compensation are best placed to avoid disputes, comply with statutory requirements and support a productive workforce.

 

FAQs

 

Are employers legally required to pay overtime?

 

No. There is no statutory obligation in the UK requiring employers to pay workers for overtime, nor to offer enhanced overtime rates. Entitlement to overtime pay arises only where a contract, policy, collective agreement or consistent custom and practice provides for it. However, employers must still comply with minimum wage rules, working time limits and any contractual terms relating to overtime pay.

 

Can employees refuse to work overtime?

 

This depends on the contract. If overtime is voluntary, workers may decline additional hours. If the contract includes a clause requiring workers to undertake compulsory or non-guaranteed overtime when needed, refusal may constitute misconduct. Even where contractual terms allow compulsory overtime, employers must apply such requirements reasonably and in compliance with working time and health and safety obligations.

 

Should overtime be included in holiday pay?

 

Yes, in many cases. Case law requires that holiday pay reflect a worker’s “normal remuneration”. This means regular overtime—whether voluntary, guaranteed or non-guaranteed—must be included when calculating the four weeks of EU-derived annual leave. Occasional or irregular overtime may not need to be included, but employers must assess patterns carefully to ensure lawful holiday pay calculations.

 

Can TOIL replace overtime pay?

 

Yes, provided both parties agree and the arrangement does not breach statutory obligations. TOIL must be recorded accurately, applied consistently, and must not reduce a worker’s average hourly pay below the National Minimum Wage or breach working time limits. Well-drafted TOIL policies are essential to avoid disputes and unlawful deduction claims.

 

Is enhanced overtime pay mandatory?

 

No. Enhanced overtime rates such as time-and-a-half or double-time are optional and arise through agreement, not legislation. Where enhanced rates exist in a contract or policy, employers must apply them consistently to avoid claims of unfair treatment or breach of contract.

 

Can salaried workers claim overtime pay?

 

Salaried workers are not automatically entitled to overtime pay unless their contract provides for it. However, if a salaried worker is required to work significant additional hours, employers should ensure the worker’s average hourly pay does not fall below minimum wage levels. Employers may also consider TOIL or formal overtime arrangements to prevent burnout and maintain fairness.

 

Can employers stop offering overtime?

 

If overtime is voluntary, employers may reduce or withdraw it at their discretion. If overtime is contractually guaranteed, withdrawing it may breach contract and carry financial or legal consequences. Employers considering changes to overtime arrangements should consult affected staff and follow appropriate contractual or collective consultation processes.

 

How should overtime be approved?

 

Employers should use clear approval processes—preferably set out in writing—stating who can authorise overtime, how requests are made, and how hours must be recorded. Consistent approval procedures prevent disputes, protect budgets and ensure legal compliance.

 

 

Conclusion

 

Overtime is a vital component of workforce management, but it sits at the intersection of contractual rules and statutory obligations. While there is no automatic legal entitlement to overtime pay or enhanced rates, employers must ensure that any approach to compensating additional hours is clearly documented, consistently applied and compliant with minimum wage, working time and holiday pay requirements.

Well-managed overtime systems help employers maintain operational flexibility without exposing the organisation to legal or financial risk. Clear contracts, robust policies and accurate record-keeping are critical, especially where overtime patterns are frequent or substantial. Employers who proactively address these elements foster transparency, protect worker wellbeing and reduce the likelihood of disputes or claims.

Whether employers choose to compensate additional hours through overtime pay, TOIL or a combination of both, the essential requirement is clarity. Transparent rules, communicated effectively and supported by reliable monitoring systems, are the foundation of lawful and sustainable overtime arrangements in the UK.

 

Glossary

 

TermMeaning
OvertimeHours worked beyond a worker’s normal contractual working hours.
Voluntary overtimeOvertime the worker is free to accept or refuse.
Guaranteed overtimeOvertime the employer must offer and the worker must work, as set out in the contract.
Non-guaranteed overtimeOvertime the employer does not have to offer, but the worker must work if offered.
TOIL (Time Off in Lieu)Paid time off given instead of payment for overtime hours worked.
Working Time RegulationsLegislation limiting average weekly working hours and setting rest entitlements.
National Minimum Wage (NMW)The lowest hourly rate employers must legally pay most workers, depending on age or status.
Normal remunerationThe pay a worker normally receives, including regular overtime, which must be reflected in holiday pay.
Pay reference periodThe period over which a worker’s average hourly pay is calculated, usually weekly or monthly.

 

Useful Links

 

ResourceLink
Working time regulations overviewgov.uk/maximum-weekly-working-hours
National Minimum Wage and Living Wage ratesgov.uk/national-minimum-wage-rates
Holiday pay and entitlementgov.uk/holiday-entitlement-rights

 

Useful Links

 

ResourceLink
Working time regulations overviewgov.uk/maximum-weekly-working-hours
National Minimum Wage and Living Wage ratesgov.uk/national-minimum-wage-rates
Holiday entitlement and holiday paygov.uk/holiday-entitlement-rights
Overtime pay guidance (DavidsonMorris)davidsonmorris.com/overtime-pay

 

Author

Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.

Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing & Content Agency for the Professional Services Sector.

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