A recent case underscores the necessity of clearly outlining overtime policies in employment contracts. This clarity not only helps in managing expectations but also prevents disputes over pay and working hours.

If you’re an employer looking to ensure your employment contracts cover these aspects comprehensively, our employment team can help.

The background

In Brake Bros Ltd v Hudek [2025], Mr Hudek was employed as a lorry driver by Brake Bros, a food distribution company. He was salaried for working five shifts a week, which averaged 9 hours per shift (later increasing to 9.4 hours). For a period of time, he regularly exceeded these hours, but his contract stated that he would be required to work such hours as were necessary for the proper performance of his duties. Crucially, his contract also stated that he would only be paid overtime after working an additional half shift (equivalent to at least 4.5 hours).

Mr Hudek claimed he should be paid for any hours that exceeded his standard shift length. The Employment Tribunal initially upheld this claim for unlawful deduction from wages, holding that there was an implied term that Mr Hudek’s hours should be averaged and that he should be paid for any hours that he worked over the standard shift length.

On appeal, however, the Employment Appeal Tribunal (EAT) disagreed. The EAT found that Mr Hudek’s contract expressly entitled him to a salary based on working five shifts per week of variable length. It was not necessary to imply a term that Mr Hudek would be paid for any hours exceeding his normal working hours, other than when express overtime provisions applied.

What does this mean for employers?

This decision is important for industries where variable working hours are common. Clear contractual drafting – including expressly stating when overtime is payable and when it is not – is critical to avoid disputes and ensure that workers know what is required of them in their hours and duties.

If you would like us to review your employment contracts, ensuring they adequately cover working hours or overtime requirements, then our team would be happy to help. Please do not hesitate to contact Emma Rowley, or any other member of our employment team, for advice on this and any other employment-related matters.