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Overtime: How to Detect, Compensate, and Avoid Risks

2026-02-04·12 min read
Overtime: How to Detect, Compensate, and Avoid Risks

Overtime rarely starts as a 'plan'. It usually slips in through the back door: cash register closings that run long, stocktakes that always fall outside working hours, or shifts that extend because the relief does not arrive. If it is not measured, it becomes normalised; if it is normalised, it ends up costing money, health, and conflicts.

1) Why overtime 'sneaks in' without anyone noticing

A very common pattern is the '10 minutes a day'. It seems like a little, but across a team of 20 people it becomes hundreds of hours a year. And if they are not recorded, the company loses visibility and the employee loses protection: neither is compensated nor is the source of the problem identified.

Another pattern is 'emotional overtime': the person stays because they feel responsible, because the team is short-staffed, or because the performance management system pushes them to be available. In these cases, time tracking is not a punishment: it is the tool that makes the reality visible so it can be corrected.

2) Recording + policy: the combination that prevents abuse

Time recording provides the data; policy provides the rule. Define what counts as overtime, how it is requested/authorised, and what happens if it occurs without authorisation. Without that clarity, there will be arbitrary decisions: some people get compensated and others do not, and that is where conflict begins.

A practical example: in a warehouse, any shift extension must be recorded and justified with a reason (order peak, technical incident, missing relief). If the same reason recurs every week, the problem is no longer 'an hour of overtime', but insufficient planning or staffing.

3) Compensation: payment vs rest, but always documented

In practice, many companies compensate overtime with rest time (hour bank) because it is more sustainable. It works if there are clear rules: who approves it, within what period it is taken, how it is reflected on the schedule, and how to prevent it from accumulating indefinitely.

The key is that compensation is not 'just a verbal agreement'. If an employee works 2 hours overtime on a Friday and is compensated by leaving early another day, that must be recorded as an incident/approval. This protects the worker's right and the company avoids future claims for lack of traceability.

4) Typical cases: travel, on-call duties, and 'grey area' time

The scenarios with the most conflict tend to be those that mix availability and travel: trips, training outside the workplace, on-call duties, or emergency interventions. If there is no written criterion, each manager decides differently and comparative grievances arise.

A good approach is to agree rules by group and reflect them in the system: what counts as effective working time, how an on-call intervention is recorded, how exceptional travel is documented, and who validates the report. That clarity reduces disputes and makes the operation more predictable.

5) Win-win approach: fewer overtime hours, better service

Reducing overtime does not always mean hiring more staff. Sometimes it means reorganising: anticipating peaks, adjusting coverage by time slot, eliminating low-value tasks, and automating administrative processes. Time records show you where time 'bleeds'; operational improvement decides how to plug the leak.

When done well, the result is twofold: the employee gains real rest and predictability, and the company gains service quality and controlled costs. Overtime stops being a patch and becomes an improvement indicator.

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