Contractual Overtime vs. Statutory Excess Hours#
Contractual overtime refers to hours exceeding agreed contractual working hours up to the statutory ceiling. Statutory excess hours exceed the absolute legal maximum limit of 45 or 50 hours per week set by the Swiss Labour Act.
Compensation and the 25% Statutory Wage Premium#
Contractual overtime is compensated at standard wages plus 25%, unless waived by written contract. Statutory excess hours carry a mandatory 25% cash premium under public law that cannot be contractually waived.
Compensatory Time Off in Lieu#
By mutual agreement, overtime hours can be redeemed through equivalent time off (1:1 ratio) within an appropriate timeframe.
Management Contracts and Overtime Waivers#
Executive contracts in Switzerland routinely include clauses stating overtime is covered by base remuneration. This waiver is legally enforceable for senior managerial staff.
Mandatory Time Tracking Obligations#
Swiss employers are legally obligated under the Labour Act ordinances to systematically record daily and weekly working hours for all non-exempt staff.
Worked example: calculating 60 hours of overtime correctly#
Settlement rarely fails on willingness but on the arithmetic. A fully worked example makes the difference between payout and time off in lieu visible:
| Variant | Calculation | Result |
|---|---|---|
| Hourly rate | 6 500 : 174 | CHF 37.36 |
| Payout without supplement | 37.36 × 60 | CHF 2 241.38 |
| Payout with 25 % supplement | 37.36 × 60 × 1.25 | CHF 2 801.72 |
| Time off in lieu 1:1 | 60 hours | 7.5 working days at an 8-hour day |
| Time off in lieu with supplement | 60 × 1.25 | 75 hours |
Two points decide the outcome: whether there is a written waiver of the supplement and whether compensation is granted in cash or in time. A waiver is only valid if it was declared voluntarily and in writing – a clause in the standard contract is not always enough for that.
Limitation periods and burden of proof: why so many claims expire#
In practice, overtime claims fail more often on the evidence than on the legal position. Three mechanisms work against you if you do not document continuously:
- Burden of proof. Anyone asserting overtime must substantiate it – the instruction, the extent, the timing. Without records it is one statement against another.
- Limitation. Claims arising from the employment relationship become time-barred after five years. Anyone who waits three years loses the oldest part of the claim.
- Missing time recording. The Labour Act (ArG) requires working time to be recorded; anyone who keeps the records holds the evidence. If recording is missing in the company, that can work in your favour in a dispute.
Practical consequence: keep your own overview, reconciled monthly – date, start, end, occasion, confirmation by the line manager. An e-mail at the end of the month with the list is both evidence and a polite reminder.