HR glossary / O / Overtime

Overtime

Definition

Overtime refers to the working hours that exceed the standard working time as specified in labor law regulations, employment contracts, or internal company policies. In many countries, including Poland, there are additional pay rates for overtime, aiming to compensate for the extra effort and time dedicated by the employee.

There are two main types of overtime: those that are planned and those that are unplanned. Planned overtime results from prior agreements between the employer and the employee, while unplanned overtime arises unexpectedly due to urgent business needs. Both the employer and the employee should be aware of the rights and obligations related to overtime and how it’s compensated and regulated.

It’s crucial for companies to monitor and control the number of overtime hours employees work, not only because of the costs but also for the well-being of the employees. Excessive working hours can lead to burnout, increased accident risks, and other health and psychological issues.

HRnest effectively manages employee work hours, including overtime, using its electronic time tracking system. This system not only logs hours but also features an overtime tracker, generating comprehensive reports that assist in the accurate accounting of all hours worked.

FAQ

Can an employer force an employee to work overtime?

An employee should consent to working overtime, though there are certain circumstances where overtime may be required. Everything must be done by applicable regulations.

In Poland, employees are entitled to additional compensation for overtime, the amount of which is determined by the Labor Code.

Yes, there are limits to the number of hours an employee can work overtime, and these are regulated by the Labor Code.

Uses

Completion of urgent projects

Overtime allows for the rapid completion of important tasks.

Increased productivity

In certain circumstances, overtime may be necessary to meet rising demands.

Support in emergencies

Overtime enables companies to handle unexpected situations.

Flexibility in resource management

It allows for the adjustment of working hours based on the company's current needs.

Additional income source for employees

For many employees, overtime serves as a way to increase their earnings.

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