Overtime is, in short, work that exceeds the maximum number of hours a worker is allowed to work. The general rule in the Working Time Act is that the normal working time is 8 hours per day and 40 hours per week. However, exceeding the regular working hours is not in itself sufficient: work in excess of the regular working hours is considered overtime only if it is done at the initiative and with the approval of the employer. If a worker extends his working day from 8 hours to, for example, 12 hours because of a challenging work situation and approaching deadlines, without the employer's agreement or ”tacit approval”, this may constitute a form of grey overtime situations.
To keep things simple, overtime is examined not only on a daily basis, but also on a weekly basis. Daily overtime is defined as work that exceeds the maximum regular daily working time laid down in the Working Time Act, i.e. eight hours. Weekly overtime is work that exceeds the maximum regular weekly working time of 40 hours, excluding daily overtime. Weekly overtime is work which exceeds the maximum weekly working time laid down by law, excluding overtime per day. In the case of shift work, however, the above distinction does not apply; shift work uses its own formulae for calculating and compensating overtime. In addition, the applicable collective agreements, i.e. in the press often have specific provisions on overtime and its compensation, which may differ from the Working Time Act.
Overtime must be conceptually distinguished from additional work, which is performed outside the agreed regular working hours but without exceeding the regular working hours laid down by law. In other words: if you work longer than your agreed working hours on a particular day, but your working hours remain between the maximum number of hours of regular work laid down in the Working Time Act, this is additional work and not overtime.
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Overtime and employment contract
Some employment contracts may state that the employee agrees to work overtime if necessary. This is common in managerial and professional jobs, where flexibility is often considered essential. However, it is important to note that a prior agreement to work overtime in an employment contract is not valid. Overtime requires the initiative of the employer and the consent of the employee on a case-by-case basis.
Additional work can be agreed in advance in an employment contract. If the employee has agreed to additional work in his contract of employment, he is obliged to do it if the employer so requires.
Compensation for overtime
Overtime must be compensated - either with pay or time off. Often, the starting point is that overtime is paid at a higher rate, depending on the number and type of overtime hours worked. For overtime worked on a daily basis, the first two hours of overtime should be paid at 50% and the following hours at 100%. Weekly overtime must be paid at a rate of 50%. It is also possible for the employer and the employee to agree to exchange all or part of the overtime allowance for equivalent paid time off during the employee's regular working hours.
Situations relating to overtime and its compensation require extensive knowledge and expertise on the part of both the employer and the employee. From the employee's point of view, it is important that overtime worked is properly compensated. The employer, on the other hand, must ensure, among other things, that the working time records are kept and that the working time available is sufficient to carry out the work.
Amos Law Office provides legal advice on employment-related legal issues. If you have a question about the Working Hours Act or overtime, please contact us and we will help you with your problem! Article written by a lawyer Santeri Valkamo. You can always call him free of charge on 010 299 5090. You can check our price list Here.
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