How should overtime be paid to employees?

How overtime should be paid to employees

Overtime is an important element in the working lives of many employees. However, it is important to remember that there are rules and regulations in place to account for them. What is overtime? Overtime is the extra hours worked beyond the normal time specified in the employment contract. Employees who work beyond the agreed working hours are entitled to additional overtime pay.

Rules for calculating overtime

Under Polish labour law, overtime rates can be set in several ways:

  • Normal rate plus allowance: In the case of a small number of overtime hours, the employer may choose to charge the regular rate plus a percentage supplement to it.
  • Increased rate: An employer may set a fixed increased rate for overtime that is higher than the regular rate. For example, this could be 150% or 200% of the regular rate.
  • Leisure work: If the employee works on days off, such as weekends, holidays or at night, the overtime rates may be even higher, in line with the specified rates for work in such circumstances.

Overtime limit

There is also a set limit on the amount of overtime that an employee can perform within a certain period. According to Polish labour law, an employee cannot work more than eight hours in one day if it is overtime. However, this restriction does not apply to special situations such as shift work or on-call work.

Documentation and recording of overtime

The employer is obliged to record keeping concerning overtime. Start and end times and the duration of overtime should be recorded accurately. Overtime records serves not only as evidence for the employee, but is also important in the event of an inspection by the labour inspectorate.

Payment of wages for additional working hours

Overtime pay should be paid to the employee in accordance with the agreed payment schedule. The employer is obliged to make calculations in accordance with the rules and legislation, taking into account the relevant overtime rates.

Accounting for overtime a contract of employment

The employment contract should set out the rules for calculating and accounting for overtime. The employer and the employee should be clear on the rules and rates of pay for overtime. The contract should also specify what factors may influence the need for overtime.

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