How to manage employee overtime hours

Published on
November 16, 2023
How to manage employee overtime hours

Overtime hours refer to any hours worked beyond the legal working time set by law. In France, any work performed after 35 hours per week qualifies as overtime and must be compensated either through higher pay or compensatory rest.

Employers also have specific obligations regarding overtime, including giving advance notice and ensuring proper rest periods. Managing peak activity periods is complex and often requires overtime management software to streamline scheduling and workload distribution.

What are overtime hours?

Definition of overtime hours

Overtime hours are those worked beyond the legal weekly limit set by law or collective agreements, usually 35 hours per week. Overtime can be requested by the employer or voluntarily performed by the employee, but always with employer approval.

Overtime hours are compensated with a pay increase based on the employee’s regular hourly wage.

How to calculate overtime hours

Overtime pay rates are generally determined by collective agreements in each industry. If no agreement exists, the legal rates apply:

  • First 8 overtime hours: +25%
  • Beyond 8 hours: +50%
  • Overtime on rest days: +50%
  • Beyond 7 hours on a rest day: +100%

Calculating overtime is straightforward: employers add the correct rate to the employee’s standard wage.

For example, if an employee works 35 hours per week and performs 7 overtime hours, these 7 hours are paid at 125% of the normal hourly wage.

Employers must also respect legal work limits, including:

  • 10 hours per day
  • 48 hours per week
  • 44 hours per week on average over 12 consecutive weeks

Employer obligations for overtime

Maximum allowed overtime

French law caps weekly working hours at 48 hours, including overtime. Over a 12-week period, the average cannot exceed 44 hours per week. In some cases, this limit can be increased to 60 hours, but only with strict conditions and employee representative approval.

Mandatory rest periods

French law also mandates minimum rest periods between workdays, even when overtime is performed. Employees must have:

  • 11 consecutive hours of rest between shifts
  • 24 consecutive hours of rest each week

Employees working overtime must still receive at least one full day off per week. Employers can choose between paying overtime at increased rates or offering compensatory rest instead.

How to manage overtime efficiently

Anticipate staffing needs

Effective overtime management starts with forecasting workload. This often relates to seasonal peaks or project deadlines. Forecasting helps companies plan staffing levels, avoiding constant reliance on overtime.

With proper planning, tasks can be distributed evenly across teams, avoiding burnout and overwork. In some cases, companies may decide to hire temporary staff instead of relying heavily on overtime.

Set clear overtime policies

A clear overtime policy helps employees understand company expectations. Transparent communication reduces misunderstandings and helps build trust between employers and teams.

Key policy points should include:

  • Applicable periods for overtime
  • Maximum allowed overtime hours
  • Procedures for requesting and refusing overtime
  • Pay rates or compensatory rest terms

Respect advance notice requirements

The Labour Code requires employers to notify employees of overtime at least 24 hours in advance. Employees can refuse overtime if this notice is not respected.

Some industries have different notice requirements based on their collective agreements, but never less than 24 hours.

If this advance notice rule is ignored, employees can legally refuse overtime without facing penalties.

Encourage flexible work arrangements

Allowing flexible schedules gives employees more control over their working hours. Flexibility helps employees balance work and personal obligations, reducing overtime pressure.

Where possible, companies can also offer remote work options to improve work-life balance.

Balance workloads fairly

Excessive overtime often results from poor workload management. To prevent this, managers should distribute work fairly across teams and define clear responsibilities.

Uneven workloads lead to burnout and higher absenteeism, ultimately impacting productivity. Overtime should remain an exceptional solution, not a regular practice.

Use HR software for better overtime management

Overtime management software helps companies track hours worked, calculate pay rates, and comply with legal requirements.

These tools provide real-time visibility into each employee’s workload, helping companies identify risks of burnout early. They also automate processes like compensatory rest tracking and payslip integration.

With digital tools, companies can easily adjust schedules during peak periods and ensure fair workload distribution.