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Last updated on May 30th, 2026 at 01:57 pm
A disturbing trend has emerged across sectors since the National Living Wage was increased to £12.71 an hour, with workers now realising overtime hours are being mysteriously cut from their rotas. Decreasing planned overtime may be a realistic option for some employers. For others, it’s something far more ominous: an intentional way to avoid complying with the new wage floor. If you’ve had a pay cut since the rise, it’s important to know what you’re entitled to under the laws that govern overtime pay in the UK, as what your employer is doing may well be illegal.
What Is Minimum Wage Rate Offsetting?
Rate offsetting occurs when an employer cuts back on hours (including overtime) to offset the cost of a minimum wage increase. This net result is that your wages remain more or less unchanged even when the legal rate is increased. It’s not a grey area. No employer can make working hours arrangements with the intention of ensuring that your weekly pay is below the National Living Wage threshold of £12.71.
UK overtime pay rules are not stand-alone regulations. Rather, they are part of a wider set of regulations that aim to guarantee fair remuneration for all working hours performed by the employees.Overtime cuts are being applied to reduce earnings artificially – when they are applied as a way to reduce earnings, they break this framework. Unpaid forced overtime (UFO) is also a form of wage theft: when overtime is taken, but the employee is not paid for it, and his or her average pay drops below the legal minimum.
How to Recognise Illegal Overtime Cuts
Not all rota changes are illegal, but there are some indications to be aware of. The focus of the UK overtime pay rules 2026 is intent. If your employer does have:
- Cut down on overtime around the same time the minimum wage went up
- When rescheduling, made verbal and/or written references to the wage rise
- No change to base hours, but deleted supplements for paid time
- Assigned uncompensated work or overtime
If this is the case, your scenario could be considered illegal overtime reductions under the law in the UK. The test is to see if the total average pay for all hours worked is less than £12.71 per hour.
UK Worker Rights: What the Law Protects
The rules on overtime pay in the UK are clear that employers are not allowed to exploit the flexibility of work to pay less than the National Living Wage. Each worker has a right to the minimum wage for each hour that they work, including contracted hours, overtime, or other hours. Employer non-payment of the minimum wage by hours manipulation is the same as paying a lower hourly wage.
The initial step is documentation if you think you are experiencing these symptoms. Save your payslips, your timesheets and any communication – emails, texts or notes – that your employer relates your rota changes to the minimum wage increase. If you choose to take the issue further, then this paper trail is critical.
How to Report Wage Violations to the FWA
The UK’s Fair Work Agency (FWA) has been established for this purpose and looks to ensure wages are compliant. If you think your employer is rate offsetting or illegally manipulating overtime, follow these steps to report this:
1. Contact the Acas Helpline: Before making a formal complaint, get free, confidential advice from Acas on how to proceed in the circumstances. Acas may be able to advise you if your employer is in breach of UK overtime pay laws and what steps you should take next – it doesn’t have to be done now.
2. Make a complaint at the Fair Work Agency (FWA): You can complain directly to the FWA about serious wage abuse. Fair Work Agency complaints are handled seriously and may lead to a formal investigation of employer payroll practices. The FWA has the power to reclaim unpaid salaries and also impose fines equivalent to the salaries left unpaid.
3. Use the GOV.UK Pay and Work Rights Complaints Form: Alternatively, fill in a report through the official online complaints form on GOV.UK (form 3). This route also has whistleblower tips — and, importantly, all tips can be anonymous if you have concerns about possible reprisals in the workplace.
Do Not Wait — The Cost of Inaction
In 2026, FWA wage enforcement has become much stronger, and its resources are being used more to investigate employers’ minimising minimum wage strategies. Reporting on violations is a way for workers to help themselves and also uncover systematic abuse, which might be happening to other teams or workplaces.
The first line of defence is understanding what the overtime pay rules are in the UK. Don’t shrug off a coincidence if your hours have been reduced, your wages have not improved, and it seems to have dovetailed into the £12.71 minimum wage increase. Collect evidence, ask for guidance from Acas and utilise avenues you have to raise your issues. The law is here, but only if you make use of it.
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