Buying out of overtime clause from contract

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clipper1981

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The company I work for have offered to buy out the overtime clause that is contained within my contract. Can someone explain me to me how this works as I have not heard of this approach before. Does the company come up with an annual figure for overtime and then add this to your original salary?I do very little overtime as it is so I cant imagine the figure being huge if this is the approach.

If I were to accept their offer is there a certain percentage of salary that would be a minimum based on the fact that my overtime could increase over the next few years.

Any help greatly appreciated.
 
It sounds like they might give you a few extra € per annum to make up for the overtime, which would be taxed as part of your salary anyway. Just make sure you're getting a good deal - no point having it bought out, then having to work loads of extra hours / weekends.

Make sure you're still to entitled to days in lieu, as per the Organisation of Working Time Act 1997. I think the jist of this is you are paid or have time off in lieu if you work over the hours set out in the Act (particularly Sundays)
 
A buy-out may suggest a one-off payment. Get all the details in writing and you'll be in a better position to make a decision.
 
What percentage of your salary is overtime without the buy-out clause? Check back on your last couple of months pay slips. If its around the percentage your employer is offering, then I'd say you should be ok. As I said, be wary you're not going to be working extra hours for fewer €
 
Are you in a position to say no if you are asked to do overtime at the moment?
 
If the company wants you to alter your terms and conditions , you will need information from them before you make any decision.


From last P60 , what percentage was your O/T ??

In next few years, will you be expected to work more OT, do you have a bonus scheme, what rates is OT paid at.

If you want advice, you need to post more info.
 
Make sure you look long and hard at the figures before you gowith that. Make sure you get time in lieu. Where I work we get the time you worked. If you come in on your day off you get your time plus 2 hours. We are on a salary.
 
Sounds to me like someone has cooked up a plan to get you working a lot more hours somewhere down the road !.
First of all you have to ask yourself,why are they doing this now ?
You say you don't work very much overtime at the moment,so the cost of buying out your right to overtime payments for extra hours worked at the moment would be very little.
Unless there going to give you a guaranteed 39/40hour contract and this is compensation for loss of earnings then the other reason is that soon after the "deal" is done your hours will begin to be increased gradually firstly to clawback the extra money you got and then over time to work the deal in the company's favour.BE VERY WARY !.
 
in fairness alright, I doubt very much they'd be trying to do this unless they see something in it for themselves...I doubt if its to benefit you...
 
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