Time off in lieu

Time off in lieu refers to the possibility of reducing overtime through paid time off instead of additional remuneration. Time off in lieu is often used to make working hours more flexible and to avoid overwork due to excessive working hours. In practice, this means that an employee who has worked more hours than contractually agreed can reduce this overtime at a later date by taking days off or working shorter hours. In principle, compensatory time off is a common procedure in many companies to avoid overworking employees and to ensure compliance with the Working Hours Act.

Overtime and compensatory time off in the Working Hours Act

Overtime and time off in lieu are clearly regulated in the Working Hours Act. Regular working hours may not exceed eight hours per working day. However, these working hours can be extended to up to ten hours if they are compensated by shorter working hours within six months or 24 weeks. Compensatory time off plays a central role here because, according to the Working Hours Act, employees can also receive time off in lieu of overtime pay - often as part of the so-called overtime bonus - as compensation for the overtime recorded as plus hours in their working time account. Further specific regulations on overtime and time off in lieu are often laid down in collective agreements or works agreements in addition to the Working Hours Act.

Time off in lieu and its significance

For many employees, compensatory time off is of great importance for their work-life balance. It also serves occupational health and safety: too much overtime without sufficient recovery phases can lead to burnout and other health problems in the long term. Time off in lieu can minimize such risks, as employees are given the opportunity to recover after intensive periods of work. Time off in lieu is therefore of central importance when it comes to the fair compensation of overtime in accordance with the Working Hours Act. Employees gain more flexibility in organizing their free time, which has a positive effect on their satisfaction and well-being.

Time off in lieu is also of crucial importance from a company perspective: it can increase work motivation as employees have the opportunity to recover appropriately after overtime and are generally more flexible in their working hours. This leads to improved performance and job satisfaction. Overall, compensatory time off therefore contributes both to the protection of employee health and to a productive working environment.