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We've just had our payslips at work (after of transfer of funds, but that's another issue) and while some have had pay rises and others haven't, what's become apparent is that those who have had rises have had there overtime rate put at a static figure. Previously the rate was time and half and now it's the same as it was on the previous hourly rate. e.g. hourly rate was £5 per hour and overtime rate was £7.50, now the hourly rate is £6 per hour and the overtime rate is still £7.50. The contract states overtime will be paid at time and a half. The only notification is an ambiguous note in the payslip received after pay day stating that there will no longer be a correlation between normal and overtime rates. There is no variation clause in the contract. Any ideas where the employees stand? Cheers 🙂
your employer has breached the terms of your original contract, you are free to leave.
IANAL
If your contract clearly states overtime is paid at time and a half then it should have been varied.
I would suggest you ask for a meeting first with your boss and then with HR asking for an explanation.
If the employees has breached the contractual terms then they have to remedy it and pay you what you should have received. Normally you would expect an announcement and a letter if terms / rates of pay where to be varied.
Your employer is definitely trying it on. Sneaky. What's your union situation? Feel free to go to HR for clarification but be aware that they are there to help facilitate your employers needs, not yours
I'd ask HR or payroll before getting your pitch forks out.
Our lot seem to be surprised by needing to pay us, despite the fact that it happens every month at the same time. So often, it is rushed and shoddy with corrections being made over the next few months. It could just be an oversight...
When was the paid overtime accrued?
If you worked it before the raise, then the payslip is right... 😉
We recently had our on-call rates and rules around O/T payments changed, it was communicated well in advance but there doesn't seem to have been a need to re-sign contracts so not sure how that all works. The people who have TUPE'd T&Cs seem to have a lot more protection over this sort of change (even after several years)
I was wondering the same as lerk.
HR is basically the MD (or me in the event of disciplinary issues) so no chance of going to HR. The overtime was accrued last month and we were paid for that, this month, at normal rate. As it is there's been no communication regarding the changes to overtime rates until we received our payslips. The issue is that the contracts (not just mine) state time and a half for the overtime rate. There haven't been any agreed changes in contract. This is from the pay section of the contract:
Your rate of pay is by a fixed amount per hour for normal time (first 39 hours work), if overtime is worked then at one and a half times the fixed rate per hour for over-time (Subsequent hours worked after first 39 hours worked)
The same fixed rate is applied, per hour, for Bank hols (if not worked), and for holiday pay.
Bank hols (if worked) are paid at double the fixed rate.Rates of pay will be reviewed from time to time and are given on an individual basis only as they are heavily related to individual performance.
This is all that's mentioned as regards pay. The wording of the note in the payslip doesn't make it immediately obvious, particularly if there was no wage rise. If you've had a wage rise you'd notice that there's been no change in overtime rate. The note also mentions the Living wage rise in April, which I'm pretty sure is the reasoning behind the change to overtime rates.
Lerk - The raise was applied from the start of the pay month.
something like that, ours is accrued on a 4 weekly basis, but we're paid monthly, so sometimes the overtime takes a while to actually catch up if the 4-week period ends just after the payroll's done.I was wondering the same as lerk.
I'd say the note is the company serving notice of a change in terms, I seem to recall the notice period is 12 weeks so you should get overtime based on your existing contract until then.
How old are you as you appear to be being paid less than the minimum wage.
Mefty - Forget the amounts in the example it was an example for ease of arithmetic 😉
We're paid monthly on the first Friday of the month. Hours worked during the pay day week aren't paid until the following (so we get 4 and 5 week months) month. Overtime for the month just worked has always been paid that month. Essentially, everything you've worked in that pay month is paid, it never follows on to another month. I'll have to go back a few years to see what happened with the overtime rate at the last raise.
Well in that case, assuming your raise was from the 1st of November, your pay packet this month will be overtime earnt in October... hence the old rate.
I'd check this though, as if they are trying to pull a fast one you have to officially refuse to accept new terms.