Managing overtime correctly for your workers out in the field, or on site, ensures compliance with employment laws and prevents disputes. In 2024 alone, 3.8 MILLION UK workers worked unpaid overtime, a loss of £31 BILLION in earnings - a concerning increase of £5 BILLION since 2023.

In this blog, we’ll guide you through the essential steps of managing overtime and the key factors to consider when using a timesheet app to ensure compliance with UK regulations.

Understanding Overtime Laws in the UK

Before we dive into how to manage overtime, it’s crucial to understand the legal framework that governs overtime here in the UK.

Working Time Regulations (WTR)

The UK's Working Time Regulations (1998) outlines the legal maximum working hours and rest periods for workers. Under these regulations, workers cannot exceed more than 48 hours work (on average) a week, unless they voluntarily opt-out of the 48 hour working week. This opt-out agreement must be in writing and must be voluntary and solely the employees decision.

Overtime Pay

Overtime is typically categorised as any hours worked beyond a standard working week. While the UK law doesn’t mandate overtime pay, it’s important to check your workers' contracts to ensure that any overtime is clearly defined, including whether it’s paid at a higher rate (e.g. time and a half or double time).

For construction and field services workers, overtime may be a regular occurrence, and ensuring that it is properly calculated and compensated is essential for legal compliance and employee satisfaction.

Calculating Overtime Accurately

Ensure you’re calculating overtime correctly with the following considerations -

1. Know the Standard Hours

For most full-time workers (not opted out of WTR), a typical workweek is 37.5 to 40 hours. Any work performed beyond these standard hours is generally considered overtime. 

2. Understand the Overtime Rate

Check the employment contracts of your workers to confirm the overtime rate. Some businesses may offer a higher rate for overtime hours worked, such as:

• Time and a half (1.5x regular hourly rate)
• Double time (2x regular hourly rate)

Ensure that your payroll team or software is set up to calculate overtime at the appropriate rate based on the terms of your employee contracts.

3. Record Overtime Hours Accurately

It’s essential to track every hour worked, especially overtime hours. That’s where a timesheet app comes in handy, allowing employees to log their hours accurately.

Using a Timesheet App to Track Overtime

Timesheet apps are an efficient tool for tracking exact hours worked on site, including overtime, whilst remaining compliant with legal requirements. When choosing a timesheet app for your field services or construction business, here’s what to look for:

1. Easy Time Tracking for On Site Workers

Field services and construction workers often busy, working in various locations, so a user friendly timesheet app that allows workers to clock in and out directly from their device is crucial.

Apps like TimeKeeper, Deputy, and ClockShark offer simple ways for workers to log their hours in real time. This eliminates manual errors or disputes about hours worked and provides a clear record of overtime hours. Some apps like TimeKeeper, offer geofencing, allowing you to track employee time spent at specific locations and sites.

2. Automated Overtime Calculations

Some timesheet apps have built-in features to automatically calculate overtime based on the number of hours worked. For example, if a worker exceeds their regular 40 hour workweek, the app will automatically apply the correct overtime rate (if specified in the contract). This reduces the risk of human error and ensures that employees are compensated fairly. 

3. Syncing with Payroll

Integrating your timesheet app with your payroll system ensures that overtime hours are correctly reflected in employee pay. This integration streamlines the process, reducing administrative time and improving accuracy. Many apps offer this integration feature, such as Xero, which seamlessly syncs with payroll software. Whilst apps like Sage and BrightPay also offer direct import options.

Managing Overtime Compliance

Communicate

It’s important to clearly communicate overtime expectations with your workers. Ensure that they know how overtime will be calculated, when it’s applicable, and what the overtime rate will be. This transparency fosters trust and reduces misunderstandings down the line.

Monitor

For businesses that deal with significant overtime hours, it’s important to regularly monitor workers' hours to ensure that they don’t exceed legal limits, such as the 48 hour weekly average under the Working Time Regulations.

A good timesheet app will help you keep track of individual workers’ hours, ensuring they remain within legal limits. In the case of workers opting out of the 48 hour limit, it’s essential to keep a record of this opt-out consent.

Best Practices

• Knowledge: Ensure that your workers know how to use the timesheet app and understand the importance of accurately logging their hours.
• Audit: Conduct regular reviews of overtime hours to ensure compliance and identify any discrepancies in time logs.
• Security: Protect employee data by ensuring that your timesheet app complies with GDPR and other data protection regulations.
• Update: Regularly update your timesheet app to take advantage of new features and ensure it remains compliant with any changes in employment law.

Conclusion

Managing overtime correctly and legally for field services and construction workers is essential. Not only to remain compliant with UK employment laws, but also fostering a positive and loyal work environment. By leveraging a reliable timesheet app, you can ensure that overtime is tracked accurately, employees are paid fairly, and your business remains in full compliance with the law.

Make sure to select a timesheet app that suits your business needs, provides automated overtime calculations, and integrates with your payroll system. This approach not only saves time but also helps in maintaining transparent, efficient, and legally compliant overtime management for all your field and construction workers.

We created a series to help you from Deliberation to Integration when choosing a timesheet app.

Start exploring timesheet apps today to improve how you track and calculate overtime for your workers, ensuring compliance and accuracy every step of the way.