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Reimbursing additional and overtime work as time off
According to section 21 of the Working Hours Act, the pay for additional and overtime work may be partly or fully agreed to be exchanged for time off during the employee’s regular working hours. The length of time off from overtime is determined on the basis of overtime compensation. This means that time off cannot be given for overtime on an “hour-for-hour” basis.
As a rule, time off must be given and used within six months of the additional or overtime work. The employer may decide when to grant the time off if the employer and employee do not agree on a time together. However, the employer cannot decide when to grant the time off if the employee instead requests the additional or overtime pay in cash. Time off can be transferred to a working time bank in accordance with the Working Hours Act or combined with leave carried forward.
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