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Overtime explained simply

Definition

Overtime refers to hours worked in excess of the contractually agreed weekly working hours. In principle, it must have been ordered by the employer, or at least tolerated, for the employee to be entitled to remuneration. It must either be paid or compensated with time off in lieu. Clauses such as ‘Overtime is covered by the salary’ are only valid if they specify a specific number of hours. In the event of a dispute, the employee must demonstrate on which days and at whose instigation they worked longer hours.

Dr Nils Bronhofer

Specialist solicitor in employment law
With over 15 years’ experience in employment law

Reading time:  minutes • Last updated: January 2026

Classification under employment law

Overtime must, in principle, be ordered or at least approved in order to be eligible for remuneration. Lump-sum compensation clauses in employment contracts are only valid if the number of overtime hours is clearly limited and the clause is transparent (Federal Labour Court case law).


Distinction from related terms

Working hours: Regular working hours are set out in the contract. Overtime occurs when these hours are exceeded. 

Time off in lieu: Overtime can be compensated by additional pay or by time off in lieu. Time off in lieu is therefore a form of compensation, not the overtime itself.

Practical tip

Keep a systematic, daily record of your overtime – including the date, time and, where possible, confirmation from colleagues or email correspondence. If you don’t have any records, you’ll face a significant problem of proof in any legal proceedings. An Excel spreadsheet is a good place to start. 

Only if this is permitted by contract or for operational reasons. In the absence of such a basis, there is no general obligation.

By keeping detailed records of the time, duration and schedule of overtime. General information is not usually sufficient.

Yes, provided there is no valid arrangement for financial compensation. Alternatively, time off in lieu may be granted.

Claims may be made, but they often have to be lodged within specific time limits.

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