The labor debate in Spain – with the aim of reducing working hours to 37.5 hours per week from 2025 – has raised the question of how overtime regulation and productivity needs will be compensated.
According to the Spanish newspaper 'El País', the regulation of overtime in a neighboring country basically has the following features: its voluntary nature, unless it is mandated by law or contract; The maximum number of overtime hours that each worker can work per year, i.e. 80; How much they should pay, at least equal to the normal hourly rate; It is the duty of the company to keep a daily hourly record to determine the number of such hours worked by each employee.
In discussions between the government and union forces – the UGT set summer as the deadline for a contract -, it is necessary to look to Europe to find examples of how overtime is regulated: according to a study by the union, the Faculty of Law of the Autonomous University of Madrid in Spain has the most restrictive regulations in all of Europe, 80 overtime hours per worker per year. There is an insurmountable limit.
However, at the opposite end, there are countries in the European Union that do not impose any limits on keeping these hours, such as Denmark, the United Kingdom and Estonia. On this more relaxed side, Hungary and Slovakia also set a maximum of 400 hours per year, agreed in a collective agreement (which equates to ten or more weeks of full-time work).
In other countries, such as France, the regulatory level is intermediate and there is a limit of 220 hours per year, but there is the possibility to increase it beyond this limit with labor representatives; Something similar happens in Italy with a maximum limit of 250 hours per year extended by collective agreement. In Portugal, working overtime limits vary depending on the size of the company: 175 hours per year in micro and small companies; and 150 for medium and large enterprises (in both cases they can increase to 200 overtime per year by collective agreement).
Regarding paying these kinds of hours, “Spain is a European anomaly”, the UGT pointed out. In fact, in the absence of an individual agreement or contract, overtime is compensated with rest for four months after its completion. If the company chooses to pay them, they cannot compensate them for less than normal hours – however, the Supreme Court has determined what a normal hour is, apart from extra pay, “so workers in Spain can receive less than what they would be charged for their normal day,” the UGT pointed out. .
How is it in Europe?
According to the study, the typical salary premium paid for overtime in Europe is 50% higher than for normal hours. This is happening in Austria; and increases to 100% on Sundays and public holidays in Belgium, Cyprus, Denmark and Estonia.Finland pays 50% for the first two overtime hours and 100% for the third; Hungary; Latvia; Lithuania; Malta or Poland. Although other states do not pay overtime as in Germany or the amount is negotiated in contracts; Sweden; Romania; Netherlands or Ireland, among others.
In Portugal, according to Article 268 of the Labor Code, the following increases in hourly wages are: 50% for the first hour or fraction thereof, in a working day; 75% per hour on a business day or the next fraction thereof; and 100% for every hour or part thereof, including weekly rest days or holidays.
Prior agreement of value between the company and the worker is essential. It also avoids conflicts and guarantees that there will be no objection from the employer to your payment.
The company may ask its employees for overtime as and when there is a specific increase in work. Since this case is exceptional, it does not justify hiring new employees.
In this way, instead of hiring new employees, the company asks the already hired workers to work some extra hours. In this case, employers should compensate them adequately.
It should be noted that overtime should not be set aside to cover the growing and continuing demand for work. Overtime should be used only and exclusively for specific and temporary events.
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