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Working additional hours for no payment

Published on Jun 19, 2009 |

Your works schedule clearly states that you'll be working between 9-5.30pm or an eight hour day for a fixed daily rate. So what should you do if a hirer asks you to work extra hours and doesn't offer to pay? Do you 'like it or lump it' or do you say to the recruiter 'no way Hose?'

You 'like it or lump it' when

You're an umbrella user or owner managed contractor that's likely deemed employed for tax purposes on a long engagement. The hirer asks you to put in an extra hour or two to cope with a 'once in a blue moon' work overload crisis.

There's no point in demanding overtime payment or asking for time off in lieu or you could burn your bridges with the recruiter and hirer. Your contract may not be extended if you're perceived to be uncooperative and militant. Having a bad attitude could cost you much more than the payment you receive.

You're an owner managed contractor performing deliverables every day at the client site because you can't take work off-site or there are access restrictions in place. The hirer briefed you to perform your company's work on time and to a satisfactory standard by a given deadline.

If your company can only fulfil its obligations by working excessive hours in any one day - that's too bad. You agreed a daily rate and you must complete the work to the hirer's satisfaction for no additional payment. It's one of the risks you take for being in business on your own account; but it's also a good pointer to likely IR35 compliance too.

But if the hirer's deadline was unreasonably brought forward or you were faced with obstacles that your company couldn't control, do one of the following:

negotiate an extended deadline that enables you to perform the work yourself for your usual daily rate - perhaps working at the weekend, if necessary.
consider paying one of your suppliers to help you meet the deadline, particularly if it's commercially viable or you believe that your engagement could be borderline IR35 compliant.

It's 'no way Hose' when

You're an umbrella user or owner managed contractor that's likely deemed employed for tax purposes and the hirer expects you to put in any number of additional hours during a very short engagement - say, up to eight weeks. Or you are on an engagement or any length and the hirer routinely expects you to put in extra hours for no payment.

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Working additional hours for no payment

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