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Time for time-and-a-half?
Protections and premia for overtime workers
Liz Banks, Recruitment & Employment Confederation
Conor D’Arcy, Resolution Foundation
Ed Miliband MP
Sarah O’Connor, FinancialTimes
MatthewTaylor, RSA
Torsten Bell, Resolution Foundation
@resfoundation #overtime
Wifi: 2QAG_guest p: W3lc0m3!!
Debate on quality of work focuses on ZHCs and gig economy but, in
terms of numbers affected, overtime is a much bigger deal
2
Overtime is less common than in the late 1990s but still 1.1bn hours of
overtime worked each year
3
The premium overtime workers receive has fallen too
4
Falling premia may be linked to UK having no overtime legislation,
making it an outlier internationally
5
• Potential concerns policy can address include income insecurity
and impact on work-life balance
• Three broad kinds of response:
• Limits on when overtime is acceptable (Poland) or how many
hours can be worked (Spain)
• Protections ensuring staff can turn down hours (NZ) or
discouraging employers from last-minute changes (NYC)
• Premia boosting pay for all overtime hours (Austria), for low-
paid f/t workers (USA) or an uplift to the minimum wage
(Canada)
6
ZERO-HOURS
CONTRACTS
Taylor Review idea of a higher minimum wage for non-guaranteed
hours targeted ZHCs…
7
ZERO-HOURS
CONTRACTS
Taylor Review idea of a higher minimum wage for non-guaranteed
hours targeted ZHCs but has brought overtime into range too
OVERTIME
A premium for overtime is an idea worth pursuing, but lots of options
on how this is done
8
• A premium on overtime is a trade-off between potential winners
(those that get more security/higher pay) and possible losers
(those offered fewer hours) – makes policy design important
• Options include:
• A kind of minimum wage for overtime (Taylor Review)
• A real minimum wage for any non-guaranteed hours
• A minimum overtime premium that goes beyond the lowest
paid
Recommendations
9
• Taylor Review opening up this area for discussion is v.welcome
• Limits on overtime not right for UK’s labour market
• But greater protections would be welcome
• Overtime premium should be pursued, while recognising it could have
large effects both positive and negative
• Govt should run pilots with regional/sectoral focus, varying size of
premium and how far up the pay ladder it stretches but shouldn’t just
be for the very lowest earners
• AsTaylor Review recommended, involve Low Pay Commission as well
as unions, industry bodies and devolved leaders
Time for time-and-a-half?
Protections and premia for overtime workers
Liz Banks, Recruitment & Employment Confederation
Conor D’Arcy, Resolution Foundation
Ed Miliband MP
Sarah O’Connor, FinancialTimes
MatthewTaylor, RSA
Torsten Bell, Resolution Foundation
@resfoundation #overtime
Wifi: 2QAG_guest p: W3lc0m3!!

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Time for time and a half? Should overtime hours mean premium pay

  • 1. Time for time-and-a-half? Protections and premia for overtime workers Liz Banks, Recruitment & Employment Confederation Conor D’Arcy, Resolution Foundation Ed Miliband MP Sarah O’Connor, FinancialTimes MatthewTaylor, RSA Torsten Bell, Resolution Foundation @resfoundation #overtime Wifi: 2QAG_guest p: W3lc0m3!!
  • 2. Debate on quality of work focuses on ZHCs and gig economy but, in terms of numbers affected, overtime is a much bigger deal 2
  • 3. Overtime is less common than in the late 1990s but still 1.1bn hours of overtime worked each year 3
  • 4. The premium overtime workers receive has fallen too 4
  • 5. Falling premia may be linked to UK having no overtime legislation, making it an outlier internationally 5 • Potential concerns policy can address include income insecurity and impact on work-life balance • Three broad kinds of response: • Limits on when overtime is acceptable (Poland) or how many hours can be worked (Spain) • Protections ensuring staff can turn down hours (NZ) or discouraging employers from last-minute changes (NYC) • Premia boosting pay for all overtime hours (Austria), for low- paid f/t workers (USA) or an uplift to the minimum wage (Canada)
  • 6. 6 ZERO-HOURS CONTRACTS Taylor Review idea of a higher minimum wage for non-guaranteed hours targeted ZHCs…
  • 7. 7 ZERO-HOURS CONTRACTS Taylor Review idea of a higher minimum wage for non-guaranteed hours targeted ZHCs but has brought overtime into range too OVERTIME
  • 8. A premium for overtime is an idea worth pursuing, but lots of options on how this is done 8 • A premium on overtime is a trade-off between potential winners (those that get more security/higher pay) and possible losers (those offered fewer hours) – makes policy design important • Options include: • A kind of minimum wage for overtime (Taylor Review) • A real minimum wage for any non-guaranteed hours • A minimum overtime premium that goes beyond the lowest paid
  • 9. Recommendations 9 • Taylor Review opening up this area for discussion is v.welcome • Limits on overtime not right for UK’s labour market • But greater protections would be welcome • Overtime premium should be pursued, while recognising it could have large effects both positive and negative • Govt should run pilots with regional/sectoral focus, varying size of premium and how far up the pay ladder it stretches but shouldn’t just be for the very lowest earners • AsTaylor Review recommended, involve Low Pay Commission as well as unions, industry bodies and devolved leaders
  • 10. Time for time-and-a-half? Protections and premia for overtime workers Liz Banks, Recruitment & Employment Confederation Conor D’Arcy, Resolution Foundation Ed Miliband MP Sarah O’Connor, FinancialTimes MatthewTaylor, RSA Torsten Bell, Resolution Foundation @resfoundation #overtime Wifi: 2QAG_guest p: W3lc0m3!!

Editor's Notes

  1. Obviously stress this doesn’t mean the others aren’t important, merely that overtime is a big chunk of the workforce that we don’t talk about much
  2. Big differences – typical women and retail staff get no boost – much bigger in manufacturing