Five practical scenarios for companies and employees: what the law says, what contracts provide, and the actual risks involved
Overtime may seem like a simple extension of working hours, but it’s a complex area governed by strict rules. When employees work beyond their standard schedule, they’re entitled to additional pay or compensatory time off, depending on the law and the relevant collective labour agreement (CLA). Let’s explore five common scenarios to understand how to manage overtime correctly and avoid legal and financial pitfalls.
Authorization is mandatory, compensation is too
Overtime must always be expressly authorized by the employer. Employees cannot decide on their own to stay late, and employers can’t exploit their availability. Collective agreements determine the rate of extra pay and allow for lump-sum agreements or compensatory rest periods.
Scenario 1 – When overtime is requested by the employer
Employers can request overtime for production peaks, emergencies, or special events. The request must be in writing and justified, unless already included in the employment contract.
Risk: unjustified or abusive requests can lead to fines and compensation claims.
Scenario 2 – When the employee refuses
Employees can legitimately refuse overtime only if they are students, have valid documented reasons, or if the employer has acted in bad faith.
Warning: an unjustified refusal may lead to disciplinary action.
Scenario 3 – Flat-rate overtime
A fixed monthly amount can be agreed upon in writing to cover a certain number of extra hours. The agreement must specify the hours and the amount.
Benefits: more predictability and cost control, but the employer must track actual hours worked.
Scenario 4 – Overtime in smart working
In remote work, overtime is usually not allowed, unless expressly permitted by contracts. Exceptions apply for urgent tasks performed on-site or if agreed as flat-rate compensation.
Main risk: violating the employee’s right to disconnect, which is legally protected.
Scenario 5 – Can the employer ban overtime?
Yes. Employers can include a general prohibition of unauthorized overtime in company policies or contracts, including restrictions on staying in the office after hours.
Advantage: better control over labour costs and workplace management.
Summary
Overtime can be a strategic tool, but only if managed with clear rules, transparent agreements, and full respect for the law. Otherwise, it becomes a legal and reputational liability.
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