Employment relationship
Additional work and overtime
Additional work refers to work in between agreed working hours and the maximum number of regular working hours specified in the Working Time Act. Overtime is defined as work exceeding the maximum number of regular working hours laid down in the Working Time Act. Performing additional work and overtime work always requires the employer’s initiative and approval.
Additional work and overtime require the employee’s consent
The employee’s consent is always required for performing additional and overtime work. In principle, the employee must consent to additional or overtime work before such work is started. As a rule, if the employee voluntarily on their own initiative chooses to work more than their regular working hours, this work is not generally considered additional work or overtime.
Depending on circumstances, the employer’s tacit consent may create the conditions for additional work or overtime, though this is an exception. What this requires is that there is a mutual understanding that this kind of work is allowed. Flexitime arrangements and flexible working hours always require an order from the employer to carry out additional work and overtime.
Consent for additional work
Assigning an employee to perform additional work requires an oral or written consent from the employee. This consent can be given on a case-by-case basis, for a fixed time, or until further notice. Additional work can be agreed on already when signing the employment contract, in which case the employee commits to additional work if the employer so instructs.
Employment contracts may include an agreement on additional work, but the employee may decline additional work on their days off for a justified personal reason. Such a reason may include for example studying for or attending an exam, childcare arrangements, health reasons, personal festive days or those of relatives, funerals, or trips that cannot be cancelled without additional costs. A justifiable personal reason can also be the fact that a part-time employee has agreed to a work shift for another employer.
If the employee has agreed on variable working hours (Employment Contracts Act section 11), the employer may only assign additional work to the employee if they have consented to each session of additional work or a short period.
Consent to overtime
All instances of overtime require the separate consent of the employee. However, the employee can consent to overtime for a specified short period at a time if this is necessary for the organisation of the work. To provide such a consent, the employee must know the length of such a period. Such a need may arise from occasional short-term peaks or a sudden need for a substitute.
Because the consent to overtime is free in form, it can be given orally, in writing, or silently. In order for the silent consent to be valid, the employee must know that the work to be performed is overtime.
Overtime work must always be voluntary. The employer cannot require any employee to work overtime, nor can they be made to agree to work overtime when necessary in the employment contract.
What is additional work?
Additional work is the work performed at the employer’s request outside an employee’s regular working hours but without exceeding the statutory maximum number for regular working hours. An employee’s normal working hours can be below the statutory ceiling based on either their employment contract or a collective agreement.
The accrual of additional work depends on how the employee’s regular working hours are organised. Normally, additional work is accrued when a part-time employee performs work that exceeds their agreed working hours.
Example of overtime:
- An employee regularly works six hours per day.
- One day, the employee works an eight-hour shift.
- The difference between the employee’s normal working hours and the actual number of hours worked, i.e. two hours, counts as additional work.
Compensation for additional work
Additional work is compensated based on the pay for regular working hours, unless a separate agreement has been made for a higher rate of wages. Collective agreements might contain provisions on compensation for additional work that differ from the provisions of the Working Time Act. In addition, the higher rate of wages can be based on the employment contract or separate practices at the workplace.
The employer and the employee can agree to convert the compensation for additional work into time off during regular working hours. The compensation can be converted to time off either in full or in part.
Unless otherwise agreed between the employer and the employee, the time off must be given within six months from the date on which the additional work was performed. The date or dates for the time off should be agreed between the employer and the employee. If an agreement cannot be reached, the employer has the right to determine the date or dates for the time off, unless the employee demands the compensation as pay. The employer and the employee can also agree to transfer the time off into the working hours account or to combine it with the carried-over holiday within the meaning of the Annual Holiday Act.
What is overtime?
Overtime work is defined as working hours exceeding the ceiling for regular working hours laid down in the Working Time Act. However, hours worked beyond the statutory ceiling for regular working hours only count as overtime if the work is done at the employer’s request and with the employer’s approval.
The employee’s consent is always required for performing overtime work. The specific consent of employe is required each time overtime is performed. However, the consent to overtime can be given for a certain short period of time if this is practical considering the nature of the work. The employer cannot require any employee to work overtime, nor can they be made to agree to work overtime in the employment contract.
Compensation for additional work
Employees are entitled to a higher rate of wages for any overtime hours worked. The higher rate of wages depends on whether it is a daily or weekly overtime or overtime in the context of period-based work, as well as on the amount of the overtime hours.
Alternatively, employees can be remunerated for overtime by giving them paid time off in lieu of either all or some of the overtime hours worked. The amount of time off in lieu is determined on the basis of the increment percentages applicable to overtime pay. Unless otherwise agreed, any paid time off given in lieu of monetary compensation must be permitted to be taken within a period of six months from the date on which the overtime hours were worked. If, for example, the compensation for one overtime hour is the regular wage plus 50 %, the equivalent as time off is 1,5 hours.
Collective agreements may contain provisions on remunerating employees for overtime that differ from the provisions of the Working Time Act. It is the employer’s responsibility to take these provisions into account.
Legislation
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