Working time is regulated by the Working Time Act and collective agreements.
Almost all supervisors and specialists fall under the scope of this Act and are therefore entitled to, for example, overtime compensation. Working time includes both the time spent working and the time during which the employee is required to be at the workplace and available to the employer.
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The Working Hours Act applies to almost all work done under an employment or public service relationship. Senior employees are also generally covered. The employer and employee cannot validly agree to exclude an employee who is within the scope of the law from its application.
If an employee is covered by the Act, they have defined working hours and are entitled to statutory compensations, such as overtime pay. If the Act does not apply, the employee has no statutory working hours or entitlements unless specifically agreed.
To be excluded from the Working Hours Act, the employee must have working time autonomy. This means that the employee’s working hours are not predetermined or monitored, and the employee can decide on their working schedule independently. The applicability of the law is always determined case by case through overall assessment.
In practice, exclusion requires that the employee does not actually have fixed working hours to follow. Autonomy requires the ability to independently schedule both daily and weekly working hours. It also applies when the employee can independently manage their schedule within the framework of goals set by the employer. If the employer dictates the schedule, the employee does not have autonomy.
The Act lists exceptions where, if autonomy applies, the law does not apply. For senior employees, the most relevant exceptions are:
Whether someone is in an executive role is determined by their actual duties, not job title. Specialists who are independently responsible for a company function or domain may also be excluded if autonomy requirements are met.
Work involving particular features that make supervision of working hours impractical may also be excluded, provided autonomy applies. This could include mobile roles or work scheduled directly with clients, such as sales representatives or real estate agents.
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Working time includes both time spent working and time when the employee is obligated to be available at the workplace. It is not limited to a specific location — all time spent working is counted, including remote work, which was not the case under the previous Act. Travel time is not counted as working time unless it constitutes actual work. However, the employer must ensure that travel does not cause undue strain to the employee.
Standby arrangements and compensation must be agreed upon. During standby, the employee must be reachable and ready to work. If the employee must stay at or near the workplace, the time counts as working time.
Standby must not unreasonably interfere with the employee’s free time. The compensation amount and conditions must be clear in advance, and the impact on free time should be considered.
An employee is either covered by the Working Hours Act or not — remote work does not change this. Start and end of the day should be logged even when working from home. Flexible hours and balance accumulation can apply to remote workdays.
The Working Hours Act no longer sets a maximum for overtime hours but rather for total working time.
Working time, including overtime, must not exceed an average of 48 hours per week over a four-month period. This includes regular hours, additional work, and overtime. Employer and employee unions can agree on a different reference period.
According to the Act, regular working time is max. 8 hours per day and 40 hours per week. It can also be averaged to 40 hours per week over a 52-week period, based on a pre-established schedule.
Among senior employees, the most common arrangement is 7.5 hours per day and 37.5 hours per week. Overtime regulations apply only after exceeding 8 hours per day or 40 hours per week.
Flexible working time means employees can, within agreed limits, decide their start and end times. The employer cannot mandate flex time use.
It must be agreed upon and should cover:
1. One continuous core working time; 2. Daily flex limits and their placement; 3. Break scheduling; 4. Max balance for exceeding or falling short of regular time.
Flex time can modify daily work by up to 4 hours. Weekly regular time must average no more than 40 hours over a 4-month tracking period. At the end of the period, up to 60 extra hours or 20 fewer hours can be accumulated.
Free time can be used to reduce excess hours, preferably in full-day increments. Overtime rules still apply, and work beyond regular hours must be authorized.
Employer and employee can agree on flexible working time arrangements, deviating from collective agreements. At least 50% of the time must be scheduled independently by the employee.
The agreement must cover:
1. Which days the employee may allocate working hours to; 2. Placement of weekly rest days; 3. Any fixed working time, not between 11 p.m. and 6 a.m.; 4. Applicable working time after the agreement ends.
The average weekly working time must not exceed 40 hours over four months.
The agreement must be in writing and can be terminated to end at the end of the following adjustment period. Overtime and additional work must still be agreed upon separately.
Additional work is work done beyond agreed regular hours but within the limits of the Act’s maximum hours. For example, if regular work is 7.5 hours per day, additional work covers up to 8 hours.
Additional work requires employee consent and cannot be mandated. Consent can be given in the employment contract. Compensation is usually at normal hourly rate unless otherwise agreed.
Overtime is work beyond 8 hours per day or 40 hours per week. It requires separate consent each time and cannot be pre-agreed in the employment contract. Travel outside working hours can also be refused.
It must be authorized or approved by the employer. If necessary due to the nature of work, unscheduled overtime can count if the employer was aware it could not be completed within regular working hours.
Daily overtime: beyond 8 hours in one day. Weekly overtime: beyond 40 hours per week. Work done on a day off is additional work unless it exceeds daily/weekly limits.
Overtime is compensated with increased hourly pay:
First two daily overtime hours: +50% Further daily overtime hours: +100% Weekly overtime: +50%
Monthly salary must be converted into hourly rate for overtime. Typically, salary is divided by 158 (for 37.5-hour week) or 160 (for 40-hour week). The applicable divisor may vary based on collective agreements (e.g., 156 in the finance sector per YTN).
Overtime can be compensated with time off instead of pay, calculated with the same overtime rates. The time off must be used within six months.
Time off for overtime can also be combined with holiday savings days per the Annual Holidays Act.
A lump-sum monthly payment for overtime, additional work, and Sunday work can be agreed upon with:
1. Employees supervising or managing others; or
2. Employees under a flexible working time agreement.
The amount must reflect average overtime pay. The agreement should include the estimated overtime, compensation amount, and termination terms. The lump sum should be reviewed yearly.
As the amount of extra work varies per person, lump-sum payments are rarely suitable for all. Percentage-based pay is generally more favorable.
Sunday work is work performed on Sundays or on a national public holiday.
It requires that the work is regularly scheduled for Sundays, agreed in the employment contract, or separately consented to.
Sunday work must be compensated with 100% increased pay, in addition to other applicable compensations. The law mandates Sunday compensation — time off is not an acceptable substitute.
Sunday work must be compensated by paying a 100% increase on the employee's regular pay. In addition, any applicable additional work or overtime compensation must also be paid.
Employees managing others or under flexible working time agreements may agree to receive a monthly lump sum for Sunday work. This may also be covered in collective agreements.
A working time bank is a voluntary system allowing saving or borrowing of working hours, earned time off, or converted monetary benefits.
The goal is to boost productivity and accommodate personal work time needs. The new Act allows time banks in all companies, but many collective agreements have their own systems.
Employers can agree on a time bank with the shop steward, or if none, another employee representative or the staff. This agreement is binding for all represented employees.
Salaries for regular hours, expense allowances, or expired benefits cannot be transferred to a working time bank
Salaries payable for regular working hours, expense reimbursements, compensatory claims, and monetary benefits that have already become due and payable may not be transferred.
Yearly balance may not increase by more than 180 hours in any calendar year. Furthermore, the total accumulated balance may not exceed an amount equivalent to six months' working time.
Employees must get at least two weeks of leave from the working time bank per year. If the balance exceeds ten weeks, at least 20% must be used per year. If the employer determines the timing of the leave, the employee is entitled, upon request, to receive monetary compensation instead of taking the leave.
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