
Does an employer have to offer time off in lieu (“TOIL”)?
As a starting point, there is no statutory obligation to pay an employee for working above their contracted hours (i.e. overtime), provided that an employee’s average pay meets the national minimum wage or the national living wage in accordance with the National Minimum Wage Act 1998. Please note that the national living wage and national minimum wage rates increased on 1 April 2019.
If an employer requires, or may require, its employees to work beyond their contracted hours, it is prudent for this to be set out in employment contracts. Details of whether overtime is paid, and if so the rate of pay, or if employees can have TOIL, should also be included. However, if employment contracts are silent in relation to overtime, there is no additional obligation for an employer to offer an employee time off in lieu in compensation for additional hours worked.
An employer must take into account the maximum weekly working time imposed by the Working Time Regulations (Northern Ireland) 2016 (“WTR”). Under Regulation 4(1) of the WTR, an employer cannot make its employees work more than an average of 48 hours per week over a 17-week reference period, unless the employees have signed opt-out agreements.
If employees have not opted out of the maximum working time, the employer must ensure that it keeps clear records of additional hours undertaken and that working time is closely monitored to ensure that it is not breaching the WTR.
If you have concerns regarding your employees’ working time, we advise that you obtain legal advice in relation to your specific situation.
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