Overtime in labour law

• Corporate, Company Law
• Employment Law
• Private Clients
• SME

“Overtime” is an important issue that affects both employees and employers. Overtime occurs when an employee works beyond the legally stipulated maximum working hours. But how is overtime defined and what are the legal regulations? In this blog post, we provide an overview of the most important aspects of overtime and what you need to know about it.

What is overtime?

Overtime refers to working hours that exceed the legally permitted maximum working hours. In Switzerland, this maximum working time is regulated in the Labour Act (ArG) and amounts to

• 45 hours per week for employees in industrial companies, office staff, technical employees and sales staff in large commercial enterprises.
• 50 hours per week for all other employees.

If an employee works more than 45 or 50 hours per week, this is referred to as overtime. This overtime is more strictly regulated than normal overtime, as it directly affects the health and legal protection function of the Labour Act.

When may overtime be ordered?

Swiss labour law only permits overtime in certain situations, namely:

• Operational necessity: Overtime can be ordered if it is necessary to cope with an exceptionally high workload, to prevent or remedy operational disruptions or for other urgent reasons.
• Reasonableness: Overtime may only be ordered if it is reasonable for the employee. Employees can refuse to work overtime if it is unreasonable for health reasons or due to family commitments.

Limitation of overtime

The Labour Act sets clear limits for permissible overtime:

• For employees with a maximum weekly working time of 45 hours: A maximum of 170 hours of overtime may be worked per calendar year.
• For employees with a maximum weekly working time of 50 hours: A maximum of 140 hours of overtime may be worked per calendar year.

There are also daily limits: As a rule, no more than two hours of overtime may be worked in one working day, unless there is an extraordinary operational necessity.

Compensation and remuneration for overtime

Compensation and remuneration for overtime is clearly regulated:

• Time compensation: Overtime can be compensated by an equal amount of time off, provided this is agreed between the employer and employee. Compensation should generally take place within a reasonable period of time, ideally within 14 weeks.
• Monetary compensation: If compensation in the form of time off is not possible, overtime must be compensated financially. The law provides for a supplement of at least 25 % on top of the normal salary. This supplement is mandatory unless another agreement has been reached that does not put the employee in a worse position.

Exceptions and special regulations

Not all employees are covered by the regulations on overtime. Management employees and senior executives in particular are exempt from the provisions on overtime. As a rule, other agreements apply to them, which are often set out in their employment contract or in a special regulation.

In addition, collective labour agreements (CLAs) or individual employment contracts may contain deviating regulations on overtime. However, these may not fall below the statutory minimum standards.

Rights of employees

Employees have the right to refuse to work overtime if it does not comply with the statutory provisions or is unreasonable. They are also entitled to financial compensation or time off in lieu, as prescribed by law. It is advisable to document the overtime worked in detail and, in case of doubt, to seek legal advice.

Employer obligations

Employers are obliged to comply with the statutory regulations on overtime and to ensure that the maximum permitted overtime is not exceeded. They must also ensure that overtime is properly compensated or remunerated and that working hours are recorded correctly.

Conclusion

The regulations on overtime are clearly defined in order to ensure the protection of employees and at the same time fulfil the operational needs of employers. Both employers and employees should be aware of their rights and obligations in order to handle overtime correctly and avoid misunderstandings.

By establishing transparent rules and open communication about working hours and overtime, companies can create a fair and healthy working environment. Employees, in turn, should keep a close eye on their working hours and know when and how they can refuse overtime or assert their rights to compensation.