Overtime is one of the areas where employers most commonly make mistakes – both in record-keeping and in payroll calculations. These errors can end in a PIP fine or an employee's claim for outstanding overtime premiums.
When work constitutes overtime
Overtime is work performed beyond the employee's applicable working-time standards (8 hours per day and 40 hours per week in the basic working-time system) or beyond the extended daily working time arising from the working-time system and schedule. Overtime may also arise from exceeding the weekly working time in the adopted settlement period.
Overtime limits
The Labour Code sets limits that the employer must respect:
- 150 overtime hours per year – the statutory limit arising from the employment contract
- Up to 416 hours per year – if the employer sets a higher limit in internal regulations or a collective agreement
- Daily rest limit: at least 11 hours of uninterrupted rest – overtime must not breach this
- Weekly rest limit: at least 35 hours, including the 11-hour daily rest
Overtime pay
For overtime work, the employee is entitled to normal pay plus an overtime premium:
- 100% of pay – for overtime at night, on Sundays and public holidays that are not the employee's working days, and on a day off granted for working a Sunday or public holiday
- 50% of pay – for overtime on any other day
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Time off in lieu
Instead of paying the premium, the employer may – with the employee's consent or at their request – grant time off in lieu. Where time off is granted at the employee's request, the entitlement is 1 hour off for each hour of overtime worked. At the employer's request – 1.5 hours off per overtime hour, with no right to the premium.
Working-time records and overtime
Correct working-time records are the basis for correctly settling overtime. Missing or incomplete records make it impossible to demonstrate that no overtime occurred – which in a dispute with an employee usually works against the employer.
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I keep working-time records and settle overtime as part of monthly payroll administration. I also verify whether the working-time systems used by clients comply with Labour Code provisions and don't generate hidden risk in a PIP inspection.