Overtime hours advice
Discussion
Hi Guys and Gals
I need some advice, I have searched online and I cannot find anything.
I am supervisor of a small team, and the guys have been working guaranteed overtime for at least 5 years. Our company has now decided to make cut backs. They are taking everyone’s overtime away from them and putting them all on basic hours. For some they are going to loose as much as £10,000 a year in wages because of it. They have been given only verbal notification that this will be happening.
Do they have a leg to stand on?
I need some advice, I have searched online and I cannot find anything.
I am supervisor of a small team, and the guys have been working guaranteed overtime for at least 5 years. Our company has now decided to make cut backs. They are taking everyone’s overtime away from them and putting them all on basic hours. For some they are going to loose as much as £10,000 a year in wages because of it. They have been given only verbal notification that this will be happening.
Do they have a leg to stand on?
If an employer can demonstrate a pressing business need for a change to an employment contract, then it can justify imposing such a change, and an employee who declines to accept it can lawfully be dismissed.
So significant a change, however (10K pay cut), could go too far, and could break the implied term of trust and confidence and justify a claim of constructive dismissal. The team should pool their resources and instruct a lawyer, or join a union.
I can recommend some law firms if you like.
So significant a change, however (10K pay cut), could go too far, and could break the implied term of trust and confidence and justify a claim of constructive dismissal. The team should pool their resources and instruct a lawyer, or join a union.
I can recommend some law firms if you like.
Edited by anonymous-user on Tuesday 18th December 08:56
Very murky this one and does depend on how it's been setup.
Is the overtime genuinely guaranteed - i.e. there is a contractual undertaking that you can, or will, always work X additional hours a week or is it that there has just always been overtime available if people wanted to do it?
I've been in a similar situation where the latter was true - we always had the option to do overtime and many people would do an additional 10 or so hour a week but they decided to change it to pre-authorised overtime only and stopped virtually all of it. In that situation we didn't have any option as it was in our contracts that overtime was at the discretion of the company.
Is the overtime genuinely guaranteed - i.e. there is a contractual undertaking that you can, or will, always work X additional hours a week or is it that there has just always been overtime available if people wanted to do it?
I've been in a similar situation where the latter was true - we always had the option to do overtime and many people would do an additional 10 or so hour a week but they decided to change it to pre-authorised overtime only and stopped virtually all of it. In that situation we didn't have any option as it was in our contracts that overtime was at the discretion of the company.
I am referring to a common law principle. There are numerous cases on the subject. For an example, see:-
http://www.thompsons.law.co.uk/ltext/l1160002.htm
http://www.thompsons.law.co.uk/ltext/l1160002.htm
No matter what overtime is overtime, no bills or other regular outgoings should be based on this being guaranteed.
Treat it as savings or for a luxury purchase once in a while.
I know this as when I worked for a large Japenese car manufacturer in the midlands this is exactly what I was told when I got put onto permanent days from shifts and it cost me around 2k a month in shift pay and overtime!
There is no such thing as guaranteed OT, if I had that much work on all the time I would have extra staff on basic salty as it work out cheaper.
Treat it as savings or for a luxury purchase once in a while.
I know this as when I worked for a large Japenese car manufacturer in the midlands this is exactly what I was told when I got put onto permanent days from shifts and it cost me around 2k a month in shift pay and overtime!
There is no such thing as guaranteed OT, if I had that much work on all the time I would have extra staff on basic salty as it work out cheaper.
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