Overtime: How Much Is Too Much? Germany and France Compared from a Legal Perspective

In this edition of our Employment Law Update, we present the different rules governing working time and overtime in Germany and France.

Overtime in Germany: A Complex System with Many Variations

The maximum number of hours employees may work in Germany is regulated by the German Working Time Act (Arbeitszeitgesetz, Sec. 3).

The Working Time Act as the Basis for Working Hours, Breaks and Rest Periods

As a general rule, regular working time may not exceed 8 hours per working day, meaning a maximum of 40 hours per week in a five-day working week or 48 hours in a six-day working week.

Only in exceptional circumstances may daily working time be extended to up to 10 hours per day (i.e., up to 50 or 60 hours per week), provided that an equivalent compensatory reduction in working time is granted within the following six months.

Even longer working hours and different compensation periods may only be agreed in exceptional cases through collective bargaining agreements or works agreements, for example where part of the working time consists of on-call duty or standby service.

In addition to maximum daily working hours, the Working Time Act also prescribes specific break periods depending on the length of the working day. These break periods must also be observed when overtime is worked. Breaks do not count as working time or overtime; they are additional to working time and do not need to be remunerated.

The Working Time Act also requires compliance with a minimum rest period following the end of the daily working time. Currently, this rest period amounts to 11 hours (Sec. 5). Exceptions apply to certain sectors expressly specified by law (e.g., hospitals, care facilities, restaurants and hotels).

The provisions of the Working Time Act also apply to employees working remotely or from home.

Different rules apply to specific groups of employees, including young people aged 15 to 18, pregnant and breastfeeding employees, persons with disabilities, and night workers.

As a rule, the Working Time Act does not apply to executive employees and corporate officers (e.g., managing directors), who are generally not subject to statutory working time limitations. Nevertheless, their contracts frequently contain provisions regarding working time and overtime.

Daily working hours (start and end times as well as breaks) must be recorded. Employers must provide every employee with an appropriate recording system, preferably in digital form.

Different Provisions in Collective Agreements and Employment Contracts

Some collective bargaining agreements and many employment contracts provide for shorter working hours than those stipulated by law. Most employees in Germany currently work between 38 and 40 hours per week, spread across five working days.

As a general rule, contractual or collectively agreed provisions take precedence over statutory provisions where they provide for shorter working hours than the statutory maximum.

Permissibility of Overtime

In German employment law, overtime refers to working time exceeding the hours agreed in the employment contract. Provided that the statutory maximum working time under the Working Time Act is not exceeded, overtime is generally permissible.For example, an employee whose contract provides for a 38-hour work week may work 2 hours of overtime per week without exceeding a 40-hour week, and up to 12 overtime hours per week before reaching the statutory limit.

Employees are not subject to a statutory obligation to work overtime. As a general rule, employers may only require overtime if this is provided for in the employment contract, a collective bargaining agreement, or a works agreement. An exception exists in emergency situations (e.g., where perishable goods are delivered late and must still be transported to cold storage).

Since 2022, employers have been required under the German Act on Proof of Essential Employment Conditions (Nachweisgesetz) to specify in writing in employment contracts whether and under which circumstances overtime may be ordered. Such provisions are commonly found in collective agreements and works agreements governing working time.

Burden of Proof: In the event of a dispute, the employee must demonstrate and prove that overtime was worked and specify its extent. The employer, in turn, bears the burden of proving that the overtime was neither ordered nor necessary.

Compensation for Overtime

There are no statutory rules generally prescribing how overtime must be compensated. The Working Time Act only contains specific provisions regarding compensation for night work, shift work, and work performed on Sundays and public holidays. As a rule, employment contracts, collective agreements, or works agreements stipulate whether compensation is granted through time off or financial payment.

Lump-Sum Compensation Through Salary

Some employment contracts, particularly older ones, contain clauses stating that overtime is compensated by the employee’s salary. According to the case law of the German Federal Labour Court, such clauses are only effective for employees whose remuneration exceeds the social security contribution assessment ceiling.

For all other employees, overtime may only be validly compensated through salary if the clause is limited to approximately 10–15% of the weekly working time. With a 38-hour work week, for example, a maximum of around 5 overtime hours per week may be effectively covered by the salary.

Separate Financial Compensation

Where no valid compensation clause exists, every overtime hour worked must generally be compensated separately. The applicable rate is usually the employee’s regular hourly wage.

Some companies additionally pay overtime premiums on top of the regular hourly wage. However, such premiums must be expressly provided for in employment contracts, collective agreements, or works agreements. Most collective agreements contain such provisions, with premiums generally ranging between 15% and 40% of the regular hourly wage.

Additional overtime payments and overtime premiums are generally subject to tax and social security contributions. However, tax exemptions may apply in certain circumstances to overtime worked on Sundays and public holidays.

Compensation Through Time Off

Instead of financial payment, overtime may also be compensated through additional time off. It is furthermore possible to accumulate overtime on a working time account (Arbeitszeitkonto) and use these hours later to offset periods of reduced working time or for longer periods of leave. This requires an express provision in the employment contract, collective agreement, or works agreement.

Administrative Obligations

The obligation to record daily working hours also applies to overtime. Overtime must therefore be documented.

There is no obligation to show an employee’s current overtime balance on the payslip. However, if overtime is remunerated, this must be clearly indicated in the payroll statement so that employees can identify what additional compensation they are receiving beyond their regular monthly salary.

Conclusion

Given the complexity of German working time law, employers are well advised to establish clear and unambiguous rules regarding overtime and its compensation. To avoid excessive overtime balances and the resulting compensation claims upon termination of employment, employers should ensure that overtime is compensated regularly rather than accumulated over long periods. Existing employment contracts should also be reviewed to ensure compliance with current legal requirements and amended where necessary in order to reduce financial risks and provide legal certainty.

Overtime in France: A Clearly Regulated but Flexible System

Working time in France is strictly regulated by the Code du travail (French Labour Code).

The Code du travail as the Legal Framework

These regulations apply to all employees, with the exception of senior executives (cadres dirigeants), who are generally exempt from working time regulations.

The Code du traivail defines working time as the period during which the employee is at the employer’s disposal, follows the employer’s instructions, and cannot pursue personal activities. The statutory regular working week consists of 35 hours, generally calculated on a calendar-week basis.

The law establishes mandatory maximum limits that may not be exceeded: 10 hours per day (up to 12 hours in certain exceptional circumstances such as emergencies, increased workload, or collective agreements); 48 hours per week (up to 60 hours in exceptional circumstances under very strict conditions); an average of 44 hours per week over any period of 12 consecutive weeks (which may be increased to 46 hours by collective agreement). Exceeding these limits entitles employees to damages without requiring proof of any separate loss.

Breaks and rest periods are also regulated by law. A break must be provided after a maximum of six consecutive hours of work, and a daily rest period of at least 11 hours must be observed between working days. Collective agreements may allow deviations where operational requirements justify them. Break periods do not constitute working time and are not remunerated.

Special protective provisions apply to minors, pregnant employees, persons with disabilities, and night workers.

Employers are required to implement a system for measuring each employee’s daily working time, including for employees working remotely.

Deviations Through Collective Agreements and Employment Contracts

Within the statutory framework, collective bargaining agreements and company agreements may adjust certain arrangements. In particular, they may define a reference period for working time other than the calendar week, adjust rest periods within statutory limits, and modify overtime premium rates, as explained below.

Special Case: Annual Days-Based Agreements for Managers (Cadres au forfait jours)

Employees who enjoy substantial autonomy in organizing their working time may be subject to an annual days-based working time arrangement (convention de forfait annuel en jours). For these employees, working time is measured in days rather than hours, and overtime rules do not apply. Such arrangements require a written individual agreement based on a collective agreement. This model is widely used in France for engineers, autonomous sales employees, and middle management.

Permissibility of Overtime

In France, overtime consists of all hours worked beyond the statutory 35-hour work week. Overtime is calculated on a weekly basis, either according to the calendar week or another seven-day period if provided for by agreement. To give rise to entitlement to compensation or compensatory rest, overtime must either be expressly ordered by the employer or become necessary due to workload requirements.

Employers may generally require overtime provided that statutory maximum limits and annual overtime quotas are respected and the instruction is not abusive. Employees may refuse to work overtime if the instruction conflicts with their employment contract, endangers their health or safety, or is clearly abusive.

Burden of Proof: In disputes, employees must provide sufficiently precise indications regarding the hours worked. Employers must present their own records. The burden of proof is therefore shared, making reliable and up-to-date working time recording systems particularly important.

Compensation for Overtime (Rest, Pay, Taxes, Formalities)

Overtime Within the Annual Quota

French law provides for an annual overtime quota of 220 hours unless a different quota is established through collective bargaining. Two forms of compensation are available below this threshold.

Compensatory Rest

A collective agreement may stipulate that each overtime hour is compensated by an equivalent period of rest. It should be noted that overtime compensated in this way still counts toward the annual quota.

Pay Premiums

Where no such agreement exists, mandatory statutory minimum premiums apply: +25% for the first eight overtime hours (36th to 43rd hour); +50% from the 44th hour onward. Collective agreements may modify these rates but may not reduce them below 10%.

There is no statutory obligation to show the current overtime balance on payslips. However, where overtime is paid, both the number of overtime hours and the applicable premium rate must be clearly stated.

Overtime Beyond the Annual Quota

Hours exceeding the annual quota trigger a mandatory compensatory rest entitlement (contrepartie obligatoire en repos). Where no collective agreement exists, statutory minimum entitlements apply: Companies with fewer than 20 employees: 50% compensatory rest; Companies with 20 or more employees: 100% compensatory rest (Article L. 3121-33). This compensatory rest entitlement applies in addition to overtime premiums or compensatory rest and is therefore cumulative rather than alternative.

Tax and Social Security Treatment

French tax and social security law provides particularly favourable treatment for overtime: Overtime pay is exempt from income tax for employees up to an annual net amount of €7,500.

Employers benefit from flat-rate reductions in social security contributions of €1.50 per overtime hour in companies with fewer than 20 employees and €0.50 per hour in larger companies. Since January 1, 2026, this employer relief has been extended to companies with more than 250 employees.

Formal Requirements and Risks

Overtime must be declared and reflected on payslips, including the number of hours and the applicable compensation method (rest or premium).

The intentional concealment of overtime constitutes illegal undeclared work (travail dissimulé) and may result in: A statutory minimum indemnity of six months’ salary payable to the employee; Criminal and administrative sanctions against the employer.

Conclusion: Companies Operating Across Borders Should Address the Differences Early

French overtime law differs significantly from German law in several key respects: overtime begins after the 35th hour, premium payments are mandatory by law, and the burden of proof is shared.

German companies often underestimate these differences, which can lead to substantial financial consequences that frequently become apparent only during dismissal proceedings when departing employees retrospectively assert claims for unpaid overtime.

Companies operating across borders, particularly those with locations or employees in both countries - for example, German employers using German-style employment contracts in France, French subsidiaries, or businesses relying on mobile, intensive, or project-based working models (sales, consulting, IT, engineering, management) - should familiarize themselves thoroughly with these legal differences.

Existing employment contracts and working time models should be reviewed at an early stage - preferably as a preventive measure, rather than after a dispute has arisen. We would be pleased to assist you in this regard.

Our sincere thanks to Claire Chevalier (claire.chevalier@oratio-avocats.com) from our French network partner Oratio Avocats for her support in preparing this article.