Polish labor legislation provides for two options of compensating overtime work.
First, overtime work may be compensated by way of a statutory pay premium, which adds to the employee’s regular wages. The premium is 100% of the employee’s wages (based on the individual hourly or monthly rate) for overtime work performed at night and on Sundays and holidays which are not working days for the particular employee. For overtime work performed at other times the premium is 50% of the employee’s wages.
Second, overtime work may be compensated by providing time off in exchange. Here there are two further options. When the employee requests time off in lieu, the employer may provide it (but does not have to) in the same amount of hours as have been worked overtime. In the absence of the employee’s request, the employer may grant the employee time off of their own accord, but in this case the amount of time off in lieu must be 50% greater than the number of hours worked overtime. Employees provided time off in exchange for overtime work are not entitled to statutory pay premium.
In relation to employees holding particular positions there may apply different principles of compensating overtime work. For example, managers and heads of departments are expected to perform work also outside regular working hours without the right to compensation for overtime work (with a small exception related to work on Sundays and holidays, which was not rewarded by a day off). In relation to employees who work outside the office on a regular basis wages and the statutory pay premium for overtime work may be replaced by a lump-sum payment, which needs to be calculated in such a way as to reflect the number of overtime hours worked.
Calculating compensation for overtime hours is not an easy task, especially because you need to take into consideration work performed in excess of 8 hours a day as well as in excess of weekly working time, which is cleared in periods of several months. You must be careful not to calculate compensation for the same overtime work twice, which may happen if daily overtime work translates into exceeding weekly working hours over in a clearing period.