Overtime and correct hourly rate

JDxtra

Hi,

I'm in a full time job and get paid overtime if I'm asked to work late / weekends etc - however I think my employer has incorrectly calculated the overtime rates for staff. They use this formula:

Annual Salary / 52 weeks / 37.5 hours in a week = Hourly Rate

But should they take into account that we don't actually work 52 weeks a year? i.e. public and paid holidays are not accounted for in their formula.

MrPudding

But you get paid for holidays and public holidays don't you?

MrP

JDxtra

MrPudding wrote:

But you get paid for holidays and public holidays don't you?

MrP

Yes.

But I've seen some formulas which these days from the total hours worked. Just wondering which is correct.

Wishbone Ash

jdempsey wrote:

Hi,

I'm in a full time job and get paid overtime if I'm asked to work late / weekends etc - however I think my employer has incorrectly calculated the overtime rates for staff. They use this formula:

Annual Salary / 52 weeks / 37.5 hours in a week = Hourly Rate

But should they take into account that we don't actually work 52 weeks a year? i.e. public and paid holidays are not accounted for in their formula.

Seems correct AFAIK, although it should be divided by 52.18 to get the weekly amount (not 52).

Although you do not work holidays, you are paid for them so they are taken into account.

E.g €40,000 salary PA

€40,000/52.18/37.5 = €20.44 per hour

leeroybrown

Technically speaking they can calculate their overtime rate however they want but if you get paid annual leave and public holidays (pretty much everyone I can think of bar contract based work) then they should be included when calclulating your average hourly rate from your salary. I think they're doing it the right way.

JDxtra

Thanks very much for the advice, appreciate it.

testicle

Remember, your employer is not obliged to pay you for o/time!

Wishbone Ash

testicle wrote:

Remember, your employer is not obliged to pay you for o/time!

Although overtime payment is not a statutory entitlement, some industries are covered by Registered Employment Agreements and Employment Regulation Orders.

seamus

testicle wrote:

Remember, your employer is not obliged to pay you for o/time!

By the same token, you're not obliged to do overtime if you're not getting paid for it.

Wishbone Ash

seamus wrote:

By the same token, you're not obliged to do overtime if you're not getting paid for it.

Unless you are a junior Hospital Doctor!

seamus

Wishbone Ash wrote:

Unless you are a junior Hospital Doctor!

They're salaried aren't they? Salaried positions are a little different. If your contract says so, then they can ask you to work all sorts of overtime. Since you're paid by the month (or the week), then they can say that all of the overtime is included in your salary, i.e. that you're being paid for your overtime. If a person is being paid hourly, then exactly what you're being paid for is accounted for, so if you're not getting paid for extra work, you don't have to do it.