"imposed" is the best choice of verb. "lifted" is also correct, but has the opposite meaning of course. "lifted the ban on overtime" would be more usual.
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CharmYouWhich is correct?You seem to have missed the obvious: The union banned overtime.
AlpheccaStarsThe sentence does not make much sense.I think it does (or could do). Unions do various things to be disruptive. Imposing a ban on overtime could be one of them. Searching for union imposed a ban on overtime brings up a few real-life cases.