The term overtime is often equated with overtime. Although the definition of overtime is a little difficult, overtime is only marginally related to it. What exactly counts as overtime depends on contracts and certain laws and how these may or must be used.
What exactly is overtime?
The overtime is basically an excess of a previously defined working time limit. This limit is set in collective agreements, individual contracts or company agreements. The Working Hours Act (ArbZG) must also be observed. The ArbZG stipulates a specific working time limit for employees, which may only be exceeded in exceptional cases. In addition, according to the ArbZG, exceeding the working time limit must be compensated by time off. This usually takes the form of days off.
In principle, the working week may not exceed 48 hours. That would be four shifts with two hours of overtime each and one eight-hour shift. If this working time limit is exceeded, this must be compensated by time off.
Overtime is therefore the additional hours that are added to a complete work shift. According to the Working Hours Act, this is overtime.
However, there is also a differentiation between overtime and additional work, which relates to part-time work. With this differentiation, everything that goes beyond part-time and approaches a full-time shift is considered overtime.
This form of differentiation can be found above all in the collective agreements for the public service of the federal states. Overtime is defined in these collective agreements as in the ArbZG and refers to the additional working time after a full-time shift.
There is no entitlement to overtime. Extra work is usually ordered by the employer if it is necessary. There is no entitlement, but also no obligation. This means that overtime does not have to be worked if there is no clause to this effect in the employment contract.
The remuneration of overtime
As already mentioned, overtime must be compensated. However, they can also be paid out. At least the contractually agreed hourly wage must be paid. However, specific overtime or overtime remuneration may also be determined. Then there are bonuses for the additional hours worked. This is usually done in the employment contract.
As a rule, flat-rate remuneration for overtime or extra work is not legally effective. This is because it is always assumed that employees are unreasonably disadvantaged. Exceptions prove the rule. For example, it may be legally possible to pay a flat rate for overtime if the annual salary is very high and the employee in question is free to organize their working hours as they wish. But even then, it is advisable for employers to seek legal advice on whether the flat-rate remuneration is permissible.
An example of the remuneration of overtime in the collective agreement would be the following:
The collective agreement stipulates that the average working time of the employee in question is 38 hours. However, the employee works 40 hours. The collective agreement may now stipulate that:
- Overtime is compensated by time off in lieu
- Overtime is remunerated by an overtime bonus
If compensatory time off is taken, time accounts are often used. The two hours of overtime are then credited. This can then shorten a future working day.
An overtime bonus is a percentage that is added to the hourly wage. This can amount to 25 %. With an hourly wage of 15.00 euros, this would mean an additional 3.75 euros. The overtime bonus is taxable in the same way as regular wages.
Conclusion
Overtime and overtime are essentially the same thing. However, collective agreements make a distinction that is important for remuneration. The regulations for overtime are set out in the Working Hours Act. Accordingly, overtime must be compensated or remunerated, which should be stipulated in the contract.
