In some workplaces, overtime is included in the salary by agreement between the employer and the employee. If overtime is included in the pay, there must be a time limit specified. If the employee’s overtime exceeds that limit, the employer must pay separately for the excess hours.
Important Points About Overtime
Employment contracts signed at the start of work sometimes state that overtime is included in the salary. The first thing to check is whether your contract contains such a clause if you do not want overtime to be included in your wages. If you only discover after signing that overtime has been included in your pay, you generally cannot change that unilaterally. Some employers rely on this clause and assume it relieves them of any further obligations regarding overtime. However, there are legal limits and court decisions that restrict how this can be applied. Under labor law, the standard weekly working time for employees is capped at 45 hours. Any work beyond 45 hours per week is considered overtime.
Accordingly, in workplaces that operate six days a week the daily work time is set at 7.5 hours. In workplaces that operate five days a week, the daily work time is 9 hours. If the employer and employee agree, the normal weekly working time can be distributed so that daily hours do not exceed 11 hours across the working days. In that case, when averaged over a two-month period, the employee’s weekly working time should not exceed 45 hours. If this balancing is achieved and the average weekly working hours remain at or below 45, no overtime payment is required. If the average weekly working time exceeds 45 hours, overtime pay must be provided.
Watch the Overtime Thresholds
Careful attention should be paid to overtime limits. A contractual clause stating that overtime pay is included in the salary does not mean the employer never has to pay overtime. Court rulings have upheld that such clauses can exempt the employer from paying overtime up to a certain annual limit—however, the law still protects workers by setting minimum thresholds. Decisions recognize that employers may not owe payment for up to 270 hours of overtime per year under some contractual arrangements, but they also require payment for overtime that exceeds defined weekly and monthly limits.
For example, when the weekly standard working time is 45 hours, overtime pay becomes due once weekly working hours exceed 50.2 hours (which corresponds to weekly overtime of 5.2 hours). Monthly, the threshold is 22.5 hours. If your weekly hours consistently exceed 50.2 hours, you are entitled to claim overtime pay, and the employer is obligated to pay the requested overtime compensation.
Proving Overtime
The burden of proof for overtime rests with the employee. Courts require workers who claim they performed overtime to substantiate their allegations. A payroll slip signed by the employee is given significant weight: once the authenticity of a signed payroll document is established, it is generally accepted as evidence and can justify a payment order. Other forms of evidence include workplace security camera footage, testimony from co-workers, and work records that show the hours the employee worked. If a worker signs a payroll slip with a handwritten note or reservation indicating that an overtime claim exists, that note strengthens the employee’s position and helps ensure the overtime pay is recognized. Without such a reservation, the employee must rely on the alternative evidence mentioned to prove that overtime was worked.