Overtime entitlement & Sickness Absence

[Anita P.]

We have a problem with some of our employees overtime entitlement calculation. There are employees in our company who sometimes work 5-8 hours of overtime per week (their contractual hours - 39 h / week) and at the same time they can be off sick for a day or two in that week. Some of them get Company Sick Pay and some of them get only SSP ( with 3 waiting days). The general understanding is that if these employees are off sick then these hours should not count towards their 39 working hours base when establishing the overtime entitlement. The legislation is basically non existent in this case therefore I would like to know how some of you deal with this type of issue (based on your experience). I am not entirely sure whether the Company can issue a policy stating whether days off sick will not count towards working hours when calculating the entitlement to overtime pay. Thank you

 

[Newchodge]

What do you mean 'entitlement to overtime pay'?

 

[Chris Ashdown]

Why does your company pay sick leave before the ssp kicks in, work to day 1 and 2 off sick then no pay unless taken as holiday pay

Overtime only outside normal working hours

 

[Anita P.]

This is out Company Sick Pay Policy which has been implemented 20 years ago and has never changed - employees are getting paid when they’re off sick starting from day 1. Currently employees are getting paid 1.5 of their basic rate for overtime - for their time worked over 39h. The question raised is whether we can completely avoid the off sick period when calculating if the employee has completed their 39h per week. If they are off sick on CSP then they’re getting paid for 8h like they would be at work.

 

[Newchodge]

It will depend entirely on your contracts and custome and practice. if someone has been getting overtime rates after being off sick for 4 days and then working extra on the 5th day, that is their contract.

 

[Anita P.]

The contracts do not state when the employee is entitled to the overtime. They only say that the overtime is paid only where it is worked at the request or with prior agreement of the company. We are trying to establish if we can create a policy stating that overtime pay will not apply when sickness absence is involved and these hours paid when employee is off sick will not be included in the calculation of 39 working hours. I know that this is confusing so thank you all for your replies.

 

[Newchodge]

You cannot just introduce a new policy if it contravenes your custom and practice over the last 20 years. That would be a contractual breach.

 

[Anita P.]

That’s my worry too...
is there anything that you could advise in this case or does it look like our company will just have to pay the overtime in every case (even SSP employees)?

 

[Newchodge]

Your company needs to sort out a proper policy and consult with employees about introducing it.

 

[Chris Ashdown]

You cannot just introduce a new policy if it contravenes your custom and practice over the last 20 years. That would be a contractual breach.

I don't see why when it is a option at the companies control, they are not by the sound of it obliged to offer overtime

Why cant they state that say, Overtime will only be offered to employees who have the previous two weeks without a full two weeks full attendance with the only exception being those on pre booked holidays returning mid week or something along those lines

New contracts of employment are changed by most companies to keep up with modern working practices, They may need a consultation period

 

[Mr D]

I don't see why when it is a option at the companies control, they are not by the sound of it obliged to offer overtime

Why cant they state that say, Overtime will only be offered to employees who have the previous two weeks without a full two weeks full attendance with the only exception being those on pre booked holidays returning mid week or something along those lines

New contracts of employment are changed by most companies to keep up with modern working practices, They may need a consultation period

Not enough people to do the overtime because of such a policy can work against the company.

A scenario I've come across more than once is a chunk of staff off for several days each with the flu / over a week in a few cases plus a couple of staff off with sick kids. So lots of work backs up.
Company offers overtime but the only staff allowed to do the overtime are the overworked, stressed staff who have been trying to run things with a large chunk of the staff missing plus the ones with sick kids that may be unable to do extra hours. And all those able to do overtime may themselves become ill
So work can be backed up for weeks with staff unable by company policy to do the overtime to clear it and management getting flack from customers about delays.

Its great for companies to develop policies to cut down on staff taking a sickie, its not so great when the company then develops problems because its policies prevent backlogs being dealt with for a time.

 

[Chris Ashdown]

True but the other way is staff take a day off to enjoy life and make up a lot of what they lost in pay by working the rest of the week on time and a half