This article outlines key considerations regarding overtime, such as the legal maximum working hours per week and whether overtime must always be compensated.
The Working Hours Act
The Working Hours Act (Arbeidstijdenwet) aims to regulate employees’ working conditions and hours to protect their health and well-being. It applies to employees earning less than three times the statutory minimum wage. If an employee earns more than this threshold, the provisions of the Act do not apply.
Regular overtime could potentially violate the Working Hours Act. The Act stipulates that employees may work a maximum of 60 hours per week in principle. Over a 16-week period, the average must not exceed 48 hours per week. Employers are required to maintain accurate records of their employees’ working and rest hours. These records must ensure compliance with the Act’s maximum working hours.
Overtime Compensation
In most cases, employment contracts or collective labor agreements (CAO) specify whether overtime is compensated. Employers may agree to pay for overtime hours or allow employees to accrue extra vacation hours.
Some contracts state that overtime is not compensated separately, considering it part of the salary. In such cases, employees are generally not entitled to additional pay for overtime.
However, exceptions exist. In a 2023 case before the Amsterdam Court of Appeal, a former Uber employee sought payment for overtime hours worked during her employment as an Executive Assistant. The court found that she had worked significantly more hours than permitted under the Working Hours Act.
Uber was ordered to pay for her overtime hours. The court considered it relevant that Uber was aware of her overtime and had implicitly approved it. While her contract stated that her salary included reasonable overtime compensation, not all overtime hours qualified for payment. Based on the nature of her role, the court deemed eight overtime hours per week reasonable (totaling 48 hours per week). These hours were deducted from her total claimed overtime. Uber was required to pay for the remaining 264 hours.
Conclusion
What should you consider regarding overtime? Employees may be expected to work overtime at certain times. Employment contracts or collective labor agreements usually outline whether and how overtime is compensated. If the employee’s salary is less than three times the statutory minimum wage, the Working Hours Act must be adhered to.
More information
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