Rate of Pay for Salaried Shift Work Query

NatB1702

Hi, I have recently started working a shift pattern of 4 on and 4 off, working 10 hours each shift. The work is salaried.

I have recently completed overtime work, which is set at time and a half. But the overtime rate is less than I expected. I have queried my hourly rate with HR.

I worked out my overtime as working half the year - 182.5 days per year, at 10 hours per shift = 1825 hours per year.

However, when I queried how the rate of pay is calculate with HR, I have been told that the rate is worked out as though I am working a static 40 hours per week, 52 weeks of the year, which equates to 2080 hours per year. This is an over-exaggeration of how many hours I work, and reduces my hourly rate quite significantly. 

I have looked on the government website and ACAS for help with this, but I am unable to find any specific guidance for salaried shift work. 

I am confused to how my employer can work out my rate of pay can be worked out on hours I do not work.

If anybody has help or guidance on this, it would be greatly appreciated. Thanks. 

DE_612183

You need to check your contract and see what it says about the amount of hours and salary.

Also do you have any holiday entitlement ( and for that matter bank holidays ) ? If so I would imagine this is deducted from the 52 weeks of the year.

NatB1702

Hi, thanks for your comment. My contract states 40 hours per week, but at a shift pattern of 4 on and 4 off. My holiday entitlement is 22.4 days per year and I work bank holidays if my shift pattern dictates. 

Marcon

 In that case 40 x 52 = 2080 sounds correct, given you are contracted to work a basic 40 hours a week.

Holidays are a red herring assuming you are paid at your usual rate for your holiday entitlement. If you are paid an annual salary, surely it is paid in 12 equal monthly instalments, regardless of whether they are 'actual' work days or you take holiday days during that month, and regardless of how many actually days 'on' there are during that month? 

SiliconChip

The issue arises because you're not working the hours that your contract specifies, rather than 40 hours every 7 days you are doing 40 hours every 8 days, so in reality you are working 35 (40x7/8) hours per week. So your calculation of the number of hours you work annually is approximately correct (35x52 = 1820), it's the contract that is wrong. The question is what happens if you rock the boat further: either they change your contract to match the hours you work (which could result in a reduced salary) or they increase the number of hours you work to equal the contract.

NatB1702

Hi, thanks both for your comments.

I am paid 12 equal sums of money each month, irrespective of how many hours worked each month. This is a new role so I have only just signed my contract. My other colleague is refusing to sign his due to the stipulation of the 40 hours worked per week, which is incorrect. I am kicking myself for signing mine. However, due to the company being up for sale and me recently going through a collective consultation and being redeployed to this role, I was keen to sign the contract so that the protected T&C's from collective would be transferred over to my new role, before the company business is sold.

I guess, in a nutshell, there is no specific legislation they need to be abiding by when it comes to working out the hourly rate. It just means I will be more mindful when agreeing to overtime. Thanks again both.

 

EnPointe

NatB1702 said:

Hi, I have recently started working a shift pattern of 4 on and 4 off, working 10 hours each shift. The work is salaried.

I have recently completed overtime work, which is set at time and a half. But the overtime rate is less than I expected. I have queried my hourly rate with HR.

I worked out my overtime as working half the year - 182.5 days per year, at 10 hours per shift = 1825 hours per year.

However, when I queried how the rate of pay is calculate with HR, I have been told that the rate is worked out as though I am working a static 40 hours per week, 52 weeks of the year, which equates to 2080 hours per year. This is an over-exaggeration of how many hours I work, and reduces my hourly rate quite significantly. 

I have looked on the government website and ACAS for help with this, but I am unable to find any specific guidance for salaried shift work. 

I am confused to how my employer can work out my rate of pay can be worked out on hours I do not work.

If anybody has help or guidance on this, it would be greatly appreciated. Thanks. 

in the 8 week period  that  a 4 on 4off  rota  repeats itself   10 hours   shifts is 280 hours which is 35 hours / week 

   (11.5 hour shfts is 322  which is 40.25 hrs /week )

35*52.14 = 1825  hours / year