Overtime vs. extra hours – what is the difference?

It's Monday evening, the office day is drawing to a close and Kurt is sitting in front of his desk. The boss has thrown an urgent task on his desk and set a deadline for tonight. This is no exception for Kurt; overtime has become a habit for him. As he grabs the keyboard and immerses himself in his work, he wonders how many times his evenings have spilled over into the dark hours of the next day.

It's not just Kurt. In many offices, workshops and home offices, the regular working day is often too short to cope with all the challenges.

But as the pressure mounts and weekends get shorter, the question arises: What exactly do overtime and extra hours mean? What rights do employees and employers have in this constant race against the clock? And what about those who manage their own time, such as freelancers and the self-employed?

Let's delve into the world of overtime and overtime to understand how this race against time shapes daily working life and what legal aspects play a role.

In this post, we'll look at:

• What the definition of overtime and extra hours is,
• what the differences are in terms of the legal basis,
• and how to avoid overtime.

What is overtime?

Overtime is more than just extra minutes on the clock. It is the echo of daily working life, which often extends beyond the regular working day. Basically, overtime is working hours that exceed the individual contractual or company-defined working hours. This phenomenon is as diverse as the world of work itself and varies according to industry, contract and the labor laws of each country.

Take Kurt, for example, who regularly devotes himself to additional tasks after work. His overtime is the result of project requirements, unexpected tasks or the simple need to meet daily demands. For Kurt and many other employees, overtime is often unavoidable and part of working life.

What is overtime?

Overtime is more than just an extension of the working day; it marks the point at which the clock becomes a challenge and the legally stipulated maximum working hours are exceeded. In Switzerland, working hours that exceed the individually agreed working hours are referred to as overtime. Overtime, on the other hand, is overtime that exceeds the statutory maximum working hours.

Overtime is therefore not only a burden on the individual's everyday working life, but also a matter that is regulated by law at national level. It marks the point at which the balance between professional commitment and the protection of employees' interests becomes critical. The question of how overtime is compensated and what financial implications it has leads to a deep understanding of the labor law landscape in different countries.

Overtime, overtime and additional work: focus on legal principles

The understanding of overtime and overtime varies depending on the industry, employment contract and labor laws of a country. In Switzerland, the law differentiates between overtime and extra hours: overtime is hours that exceed the individually agreed working hours, while extra hours are hours that exceed the legally stipulated maximum working hours. Germany uses the term "Mehrarbeit" instead of overtime, which corresponds to working hours in excess of the regular working hours.

Overtime bonus or time off in lieu: different regulations

Compensation for overtime not only depends on the individual work situation, but also varies greatly between countries. These differences in compensation reflect the diversity of labor laws and cultures that exist in the global workplace. Let's take a closer look at compensation practices in Switzerland, Germany and Austria.

Switzerland: 25% overtime premium and the option to take time off in lieu

In Switzerland, the statutory overtime premium is 25% of salary. This supplement is intended to compensate employees for the additional burden of overtime. Interestingly, Switzerland also offers the option of compensating overtime with additional time off. This flexibility allows employees to customize the balance between work and free time and offers an alternative form of compensation.

Germany: No statutory overtime bonus, but payment or compensatory time off in lieu

In contrast to Switzerland, there is no statutory overtime bonus in Germany. However, employees are entitled to payment for overtime worked or compensation in the form of time off in lieu. However, company or contractual regulations can provide for a supplement of 25%. This flexibility enables employers and employees to reach individual agreements that meet the needs of both sides.

Austria: 50% overtime bonus or time off in lieu

Austria goes one step further and grants a generous overtime supplement of 50% of the salary. This higher supplement reflects the desire to reward overtime appropriately. As an alternative to financial compensation, employees also have the option of compensating for overtime by taking time off in lieu. This flexibility allows employees to organize their working hours in a way that suits their individual preferences.

Overall, these different approaches show how overtime pay is strongly influenced by the legal framework and cultural norms of each country. This diversity underlines the need to be aware of the legal provisions and to consider individual agreements in the employment contract to ensure fair and transparent compensation for overtime.

Focus on overtime: keeping an eye on actual and target hours

The correct calculation of overtime is a key aspect in ensuring fairness and transparency in the working environment. Accurate recording of working hours plays a central role here, and many modern employers rely on efficient working time recording tools. A look at the practical aspects of calculating overtime makes it clear why this accurate recording is crucial.

Working time recording tools: The pillar of fair overtime regulations

Fair employers recognize the value of accurate data. This is why they are increasingly relying on working time recording tools that make it possible to document the actual hours worked down to the minute. These tools not only offer prompt recording, but also create a basis for an objective calculation of overtime. Employees benefit from this transparency as they can keep an eye on their own working hours.

Working time documentation: advisable for employees and the self-employed

Not only employers, but also employees and the self-employed should actively participate in documenting their working hours. This step is not only advisable, but often essential in order to record overtime correctly and avoid possible discrepancies. The individual regulations in the employment contract, legal requirements or trade union guidelines should serve as a guide. Documenting working hours not only provides clarity about your own working hours, but also serves as proof in the event of any discrepancies.

Who pays for overtime and extra hours?

As a rule, the employer is responsible for paying overtime. However, in some cases companies can pass on the extra work to their customers by charging additional hours for projects. Nevertheless, the main responsibility remains with those who work the overtime - the employees. This fact makes it clear that those whose working hours go over the limit are the ones who ultimately pay for their overtime.

When does overtime become a problem?

While occasional overtime is accepted as an exception, regular overtime can lead to considerable problems. Long-term overtime not only affects the quality of work and the health of employees, but also has far-reaching consequences for employers and society as a whole. Companies that operate sustainably should ensure that the workload is organized in such a way that it can be managed within regular working hours in order to guarantee the health and quality of life of their employees.

Self-employed, freelancers and overtime

Special rules apply to freelancers and self-employed persons, as the Labor Act primarily applies to employees. There is no set maximum working time for the self-employed, but compliance with rest breaks and other health and safety regulations is still important. It is advisable to contractually clarify regulations on compensation for working hours and overtime in order to avoid self-exploitation. Self-employed people are often satisfied despite working overtime, as the pride of working independently compensates for a lot.

How can overtime and extra hours be avoided?

Avoiding overtime is not only a desire of many employees, but also a goal to which progressive employers are committed. Effective time and attendance systems play a crucial role in this endeavor. Here are some approaches on how the use of such systems can help minimize overtime and promote a balanced work schedule.

1. proactive working time planning: taking proactive measures

Effective time recording systems enable proactive working time planning. Employers can make accurate predictions about when additional hours may be needed based on past data and current project requirements. This enables timely resource planning and helps to identify peak times to avoid overtime.

2. individual working time models: flexibility for employees

Time recording systems also offer the possibility of designing individual working time models. Employees can adjust their working hours more flexibly to meet personal commitments. This not only contributes to employee satisfaction, but also helps to minimize overtime by using working time more effectively.

3. automated overtime calculation: avoiding errors

Automating overtime calculations through time and attendance systems not only minimizes human error, but also creates transparency about actual hours worked. By keeping accurate records, employers and employees can work together to optimize work processes and prevent overtime.

4 Effective resource management: Balanced workload

Another advantage of effective time recording systems lies in balanced resource management. Employers can better allocate tasks, set priorities and, if necessary, schedule additional resources to minimize overtime. This not only promotes efficiency, but also helps to prevent individual employees from being overworked.

Conclusion: Time tracking as the key to effective overtime management

In today's labor-intensive world, where pressure is increasing and time is running out, overtime has become an everyday challenge.

Overtime is not just an extension of the working day, but an integral part of many professions. It results from project requirements, unexpected tasks and the desire to meet daily demands. Overtime, on the other hand, marks the point at which the statutory maximum working hours are exceeded and raises questions about compensation and remuneration.

Avoiding overtime is therefore a common goal for both employers and employees. Effective time recording systems play a decisive role in this. Proactive working time planning, flexible working time models and balanced resource management are key approaches to minimizing overtime in a targeted manner.

The race against time is not only an individual challenge, but also a social issue. The balance between professional commitment and the protection of employee interests must be carefully maintained. Employers who rely on transparent time recording systems and take preventive measures are not only investing in the productivity of their company, but also in the well-being of their employees. In a world where time is often seen as the most precious commodity, a conscious approach to overtime is the key to a balanced and sustainable work culture.