What are Overtime Hours and when can you demand them from an employee?
In general, when an employee of your company works outside the hours stipulated in the employment contract, it is considered that he or she is working overtime. As a rule, a full-time working office 365 email address data is 8 hours per day, or 40 hours per week. If this number of hours is exceeded, it is considered overtime, duly covered by article 226 of the Labour Code.
Overtime is counted after normal working hours and each employee can work up to two hours of overtime per day or the normal number of hours on a rest day. It is legally mandatory to record working time, indicating the start and end times.
However, it is important to note that, according to current legislation, you can only ask your employees to work overtime when there is an increase in temporary work that does not justify the hiring of new employees.
Therefore, overtime is an exception, with a limited duration and which does not cover all employees. For example, pregnant women, workers with children up to one year old or student workers are not required to perform additional work.
When additional work is not considered overtime
There are some situations in which overtime is not considered supplementary work, namely:
when it comes to the tolerance of 15 minutes beyond the normal working period;
when the employee has an exemption from working hours ;
when the employee is attending a professional training course outside working hours, which does not exceed two hours per day;
when the worker makes up for absences, previously agreed between the employee and the company;
when the day chosen to compensate for the company's closure is not a holiday that occurs on a Tuesday or Thursday.
How to Calculate Overtime?
The calculation of overtime is defined in the Labor Code and depends on whether the hours are worked on a working day or a rest day.
Legally, Sunday is the mandatory weekly rest day, although the law allows for work on Sundays in certain circumstances. You only have to pay compensation to the employee if Sunday is not part of the working hours stipulated in the contract.
Overtime Payment in Cash
If overtime is worked on working days, the expected compensation is 25% of the hourly rate for up to 1 hour of overtime and 37.5% for the remaining hours. If the employee works overtime on a weekly rest day, the amount to be paid will be 50% of the reference hourly rate.
Payment of overtime during rest time
In addition to monetary compensation, if overtime prevents the employee from taking their daily rest, they are entitled to compensation equivalent to the hours of rest missed. Therefore, you must provide them with a paid day of rest on one of the following 3 days.
Overtime Calculation
Using the employee's hourly rate as a reference, you can calculate how much overtime is worth. For example, if the employee earns 8 euros/hour and works 3 hours of overtime on a Sunday, you will need to add another 12 euros to the final monthly rate (3 hours of overtime on a Sunday = 4 euros x 2 = 12 euros). Find out how to calculate the hourly rate of your company's employees.
Are overtime hours subject to IRS?
Overtime work is subject to the payment of IRS, precisely at the same rate as the employee's salary. However, to avoid increases in the salary bracket, the law specifies that the values of overtime are not counted together with the remuneration.
