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Are you managing and paying for overtime correctly?

There have been new calls for employers to review their payment policies and payroll procedures after research suggested that employees provided more than £27 billion of free labour last year.

The bold figure is the amount of unpaid overtime that UK employees did in 2021 that the TUC has published. 

It says that 3.8 million people worked unpaid overtime during this time, which amounted to an average of 7.6 unpaid hours a week per person.

As a result, the average worker missed out on around £7,100 of additional income due to payment policies and payroll processes. 

The TUC said that the amount of unpaid overtime conducted in the UK last year was higher than in 2020, which was partially attributed to the changing nature of the pandemic. 

The Union’s study also showed that the number of workers doing unpaid overtime rose by 427,000 between 2020 and 2021.

The study included both salaried and non-salaried workers but predominantly focused on those receiving a fixed wage. 

It showed that teachers ranked high on the list of those doing additional unpaid work, which was followed by managers and directors.

Interestingly the changes in many people’s working habits meant that people who work from home are much more likely to do unpaid overtime than their peers at a workplace, who are more likely to receive paid overtime. 

The findings have led the TUC to call on the Government to implement changes to create a fairer system, but the study also highlights the importance that the payroll process can play in ensuring overtime is recognised and paid correctly. 

Do your payroll policy and procedures require review? Please contact your Seymour Taylor payroll representative today or if you need someone to do your payroll email enquiries@stca.co.uk or call 01494552100 to discuss our payroll service.

This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 18 March 2022.