Overtime Clause in UK Contracts: What It Means & Example Wording

When to Include a Overtime Clause

• In employment contracts for roles where additional hours are regularly or occasionally needed, such as retail, hospitality, manufacturing, and professional services
• When the employer needs flexibility to require additional hours during busy periods
• When the employee's pay should reflect additional hours worked, particularly for hourly-paid or shift workers

Example Wording

This example wording is illustrative only. Customise it to your specific circumstances and consider seeking legal advice.

Is a Overtime Clause Enforceable in the UK?

Overtime clauses are enforceable as contractual terms. The key statutory constraint is the Working Time Regulations 1998, which limits average weekly working time to 48 hours (calculated over a 17-week reference period) unless the worker has opted out in writing. The opt-out must be voluntary and the worker can withdraw it by giving notice. Employers must keep adequate records of working time. Where overtime is paid, the rate must not bring the employee's average hourly pay below the National Minimum Wage.

Common Mistakes

• Requiring compulsory unpaid overtime that brings the average hourly rate below the National Minimum Wage — this is a criminal offence under the National Minimum Wage Act 1998
• Failing to obtain a written opt-out from employees who regularly work more than 48 hours per week — breach of the Working Time Regulations can result in enforcement action by the Health and Safety Executive
• Not clarifying whether overtime requires prior approval — without this, employees may work additional hours and expect payment that the employer did not authorise