Overtime pay rules UK explained
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Quick answer: There is no statutory minimum overtime rate in the UK — pay depends on your contract, though average pay including overtime must not fall below National Minimum Wage.
Employers may offer time off in lieu instead of overtime pay if your contract allows it. Working Time Regulations cap average weekly hours at 48 unless you opt out. This guide explains your rights, payslip checks and what to do about unpaid overtime.
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Read the full work & self-employment guide →Primary source: www.gov.uk/overtime-your-rights
Contract terms
Check your employment contract and staff handbook for overtime rates. Time and a half is common in many sectors but is not legally required unless your contract or a collective agreement specifies it.
Zero-hours workers are still entitled to National Minimum Wage for all hours worked, including sleep-in shifts where you are working rather than simply on call at home. The hourly rate check applies even when pay is quoted as a flat shift rate.
Unpaid overtime
Regular unpaid overtime may breach National Minimum Wage rules if your hourly average falls below the minimum. Calculate your pay across the full reference period, not just your contracted hours.
Being forced to work unpaid overtime repeatedly may support a constructive dismissal claim if it breaches your contract. ACAS advises raising a grievance before considering an employment tribunal.
Record keeping
Keep payslips and rota records showing the hours you worked versus what you were paid. These documents are essential if you need to prove underpayment to ACAS or an employment tribunal.
The limitation period for unpaid wages claims is generally three months minus one day from the deduction. Act promptly if you believe overtime has not been paid correctly.
Common questions
Is overtime compulsory?
Overtime is compulsory only if your contract requires it. Unreasonable demands may still breach Working Time Regulations even if you have signed an opt-out from the 48-hour weekly limit.
Does overtime affect holiday pay?
Guaranteed overtime should be included in your holiday pay calculation under case law. Regular voluntary overtime may also count depending on how consistently you work it.
Are salaried workers exempt?
Being on a salary does not remove the National Minimum Wage check. Divide your total pay by hours worked to verify compliance, including any overtime you perform.