Overtime and compensation in the hospitality industry
In the hospitality industry, the number of working hours can vary significantly, especially when a colleague is sick, during peak periods such as holidays, or special events. Therefore, it's important that both employers and employees understand how overtime is regulated, including the rights to additional payment or compensation. The collective labour agreement (cao*) for the hospitality industry includes special rules regarding overtime. If an employee works more hours than agreed upon in the contract, the employer is not always required to pay extra money. So, what are you entitled to? Read more about it below.
What counts as overtime in the hospitality industry?
Overtime in the hospitality industry refers to the hours an employee works beyond the agreed normal working hours in the employment contract. Typically, you would work 1,976 hours in a year in the hospitality industry, which averages to 38 hours per week if you are full-time.
Right to extra payment
In the Dutch hospitality industry, it is quite common for employees to receive compensation for overtime, especially since working hours often extend beyond standard hours, such as during late nights or early mornings. This compensation for overtime is stipulated in the *cao's specific to the hospitality sector. In many cases in the hospitality industry, overtime is not always compensated with extra money but with time off.
Compensation for overtime with time
Off For every extra hour you work, you may receive one hour off. This time off is typically to be taken within a year. If it is not possible to take the overtime hours as time off within 13 weeks after that year, then the employer must pay these hours at the normal hourly wage.
This approach allows for flexibility in scheduling within the hospitality industry, where work pressure can vary greatly due to seasonal peaks or special events. This arrangement helps to maintain a balance between work and private life, while still compensating employees for extra hours worked.
Can I refuse overtime?
Your employer cannot force you to work more than 10% extra than these hours over a certain period. If you work more than 2,173 hours per year, you can refuse additional overtime. However, if you want to work more, that is of course allowed. The rules for paying and compensating for overtime are the same as for extra hours you work.
How do you calculate overtime pay?
The overtime pay depends on the rules in the *cao that you fall under. Usually, you get paid 50% to 100% extra on top of your normal wage for the hours you work beyond your regular working times.
Compensation for overtime
What if you often work more hours than your contract states? If you consistently work more hours than your contract stipulates each week for three months, you can ask your boss to change your contract to better match the hours you actually work.
What about under hours?
Under hours are the hours you work less than your contract requires each week, and yet are paid for. Throughout the year, the number of under hours and overtime you've worked is reviewed, and at the end of the year, the total is calculated. If you have under hours at the end of the year, this might occur, for example, because you scheduled yourself too little. These hours must be made up within three months after the year; afterwards, they expire.
What if you can't resolve issues with your employer?
In the hospitality industry, it's crucial that employers follow the *cao rules that regulate work hours and wages. If these are not adhered to, employees or unions can take action. The first steps you can take are to talk with your employer.
If you cannot resolve the issue with your employer, then you can take action:
Going to Court: Employees can go to court to demand that the employer complies with the *cao or to seek damages.
Inspections: The Dutch Labor Inspectorate can investigate whether an employer adheres to the *cao. They might check the administration or talk to employees, for example.
Fines: Fines can be imposed if an employer does not comply with the *cao. These fines depend on what is stated in the cao.
You can also seek help from unions. They can assist you in defending your rights. Employees are advised to first discuss problems with their employer and seek legal help if necessary. This ensures fair treatment and a safe working environment. KHN Netherlands can also assist you with additional questions.
Would you like to know more about working hours in the hospitality industry? Read more about it at FNV Horeca.
* Cao stands for "Collective Labour Agreement" (CLA). It refers to a written agreement covering employment conditions and is made between one or more employers or employer organizations and one or more employee organizations. CLAs are commonly used in the Netherlands to set out specific conditions of employment, such as wages, working hours, overtime compensation, and other employment terms for a group of employees.