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Annualization of working time: principle and people concerned

Annualization of working time: what is it?

In principle, each employee must perform a maximum of 35 hours of work per week, or 39 hours in companies which apply the 39 hours. Hours worked beyond are counted as overtime.

However, in certain sectors of activity, the year includes periods of high activity and others of weaker activity. To respond to these fluctuations in activity, the employer can apply the annualization of working time. This arrangement of working time makes it possible to distribute the working hours of employees over a period of 12 consecutive months. Thanks to the annualization of working time, the employer can increase the working time of an employee during a period of high activity and reduce it during a period of low activity.

>> To read also – Modulation of working time: principle and remuneration

For example, an employee can go from a 45-hour week to a 25-hour week depending on the period.

Hours worked beyond 35 hours are not counted as overtime. Over the entire year seen as a whole, the employee must have worked an average of 35 hours per week.

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Annualization of working time: who is affected?

Any employer can have recourse to the annualization of working time once an agreement has been concluded for its implementation. Each employee must be informed of the progress of negotiations and the conclusion of the agreement if it occurs. The annualization of working time must not concern a single employee but all the employees of a department or all of the employees of the company.

Implementation of the annualization of working time

If the annualization of working time is not provided for by the collective agreement applicable within the company, the employer must conclude an agreement to put it in place. The employer must first consult the members of the Social and Economic Committee (CSE) to obtain their opinion on the principle and the terms of the annualization of working time. At the end of the negotiations, an agreement must be concluded providing for the minimum number of hours to be worked each day by the employees. The agreement is brought to the attention of employees and is sent to the labor inspectorate.

Calculation of the annualization of working time

To calculate the distribution of hours within the framework of an annualization of working time, the employer must take into account various criteria:

  • Hours of work are counted over a full calendar year.
  • The maximum weekly working time is 48 hours.

In exceptional circumstances, the employer can ask an employee to work up to 60 hours per week. This is particularly the case when there is an unforeseen increase in activity. If the working time exceeds 48 hours or 60 hours, in exceptional circumstances, the hourly wage of the employee is increased for the corresponding overtime.

Annualization of working time and effects on employee compensation

As part of an annualization of working time, the employer can either:

  • smooth the employee’s compensation over the calendar year. In this case, the employee receives an identical salary each month over the calendar year;
  • pay remuneration equal to the hours actually worked. In this case, the employee receives a different salary each month depending on the volume of work performed.

The main advantage of the annualization of working time is that it allows the employer to save money by avoiding the use of short contracts or temporary workers during periods of peak activity.

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