Setting Up Overtime & Pay Rules: Europe

Every country has unique overtime rules based on national laws and regulations. That's why Connecteam gives you the flexibility to customize overtime rules to ensure full compliance with local requirements. Overtime laws in Europe vary significantly across different countries, reflecting the diverse labor regulations of each country. Understanding these regulations is crucial for businesses to maintain compliance and for workers to ensure they receive their rightful entitlements.

In this article, we will cover:

To begin setting up your pay rules:

To read more about the setup, click here.

For specific examples of different pay rules, continue reading below.

Regular hours are the standard working hours before overtime applies. Setting this as a rule allows you to track these hours separately in the employee's timesheet.

When setting up Saturday rates, employees typically receive their base rate plus 1.5 times their regular rate. For example, when an employee's base rate is €18 per hour, their Saturday rate would be €45 per hour (€18 base rate + €27 additional rate from 1.5x multiplier).

When employees work on Sunday, they typically receive two times their regular rate. Sunday work typically requires a double-time rate, where employees receive their base rate plus two times their regular rate. For example, if an employee's base wage is €18 per hour, they would earn €54 per hour (€18 base rate + €36 additional rate from 2x multiplier) for Sunday work.

To set this up: Similar to setting up Saturday rates, select Additional rate as your rule type> set the multiplier to 2x >add a 'Daily' condition, and select Sunday.

When employees work on public holidays, they typically receive their base rate plus two times their regular rate. For example, if an employee's base wage is €18 per hour, they would earn €54 per hour (€18 base rate + €36 additional rate from 2x multiplier) for holiday work.

To set this up:

Select the specific holidays this rate applies to then click save.

Weekday overtime applies when employees work beyond their regular hours Monday through Friday, typically paid at 1.5 times their base rate. For example, if an employee's base wage is €18 per hour, they would earn €27 per hour (€18 x 1.5) for overtime work.

To set this up:

Weekend overtime applies when employees work beyond 8 hours on Saturday or Sunday, earning 2 times their base rate. For example, if an employee's base wage is €18 per hour, they would earn €36 per hour (€18 x 2) for overtime hours worked on weekends.

To set this up:

After setting up your pay rules, head over to the Timesheet tab, in the Time clock, and enter specific employees.

In the Hour Breakdown section on the right, you'll see a detailed view of hours with separate columns for overtime policies and pay rules. Hover over any overtime entry to see exactly which conditions caused the employee to enter overtime and whether it's regular overtime or an additional hour rule.

To export timesheets, click Export in the top right of the Timesheet tab. You'll see several export options (read more about them here). In this example, I selected Payroll Totals and exported the sheets in column view.

Once the timesheet is exported, you'll see the overtime and pay rules breakdown similar to what appears in the dashboard view.

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