The hour bank is like a “stock” of overtime work that, instead of being paid, is used through time off when the employee needs.

Employee management is a task that demands time and planning on the part of the Human Resources team.

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It is necessary to think about what benefits the company can offer, in the management of absences and, of course, in the forms of compensation when the employee stays at the company after his/her shift. In these cases, it is necessary to know what is the bank of hours and what are its advantages and disadvantages.

At this moment, many managers question themselves about the best option:

In this post, we’ll talk about what hour bank is, how it works and what are the main differences from overtime.

You will also understand how the hour bank can be implemented and what precautions are needed. Read on and discover the advantages and disadvantages of the hour bank for your company!

What are overtime?

Overtime is a right guaranteed to UK residents workers through the Federal Constitution (CF) of 1988.

It provides that the additional hours of work must be paid with additional of at least 50% about the normal time value. On Sundays and holidays, the surcharge is 100%.

That is, overtime is exceptional work hours that go beyond the usual working day.

As overtime hours are paid in cash, if they occur on a regular basis, they will also be part of the other labor allowances, such as vacations, 13th salary and FGTS.

It is an advantageous compensation for the worker, as enables the increase of income, but significantly increases the company expenses and can compromise your working capital.

Read too: How to reduce company costs with employees?

What is a bank of hours?

The hour bank is the compensation for additional hours of work through time off.

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This is a possibility of compensation guaranteed by Law No. 9,601 of January 21, 1998, which amended article 59 of the Consolidation of Labor Laws (CLT).

It’s like a bank account where you credit hours worked after hours and then debit your free time.

How hours bank works in the company

There are two forms of hour bank compensation: open and closed.

In the open, the employee works the extra hours, but does not know when he will be able to enjoy the breaks.

Closed compensation is more democratic, since there is a negotiation between the company and the employee to define the dates of the days off. However, the form of compensation must be provided for in the collective bargaining agreement.

The bank of hours can also be agreed individually between the employee and the company, as established by the New Labor Law.

The individual agreement must be in writing and the hours must be compensated within a maximum period of six months.

Observation: the hour bank can be deducted from the salary when the employee owes hours to the company. this discount individual hour bank agreement must be aligned with the point control.

Hour bank: advantages and disadvantages

Advantages of the hour bank

For the employee, the bank of hours is a possibility of having time off to resolve personal matters without having any amount deducted from your salary.

For the company, the bank of hours is beneficial, as it allows utilization of maximum productive capacity in periods with high work demand and the granting of days off in quieter periods, in agreement with the worker.

It also promotes the reduction of costs with overtime payments and other labor costs.

It is also important to highlight that the hour bank is not a way to exempt the employer from paying overtime, but rather to make working relations more flexible so that both the company and the employee are benefited.

In addition, it reduces the impact of absenteeism causes, since the worker does not need to be absent from work unjustifiably.

Disadvantages of the hour bank

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Among the main disadvantages of the hour bank for the company is the risk of mismanagement of the hour bank, which can end up causing legal problems if any employee feels harmed.

Therefore, it is important for the company to focus on optimization of routines from the HR department, for example, with the use of payroll management and time attendance solutions.

How to implement bank of hours in the company

To use the hour bank, the company needs to observe the following factors:

• the bank of hours must be foreseen in Agreement or Convention Collective of Work;
• must be approved by employees, and these must be represented by the union of the category;
• The maximum working day is ten hours, with the exception of scaled regimes (12×36, for example);
• The maximum weekly working hours is 44 hours;
• The company is responsible for the individual control of the bank of hours and for providing such information to the employee;
• The compensation of hours must take place within the maximum period of one year., being due the payment of uncompensated hours within this period or in case of termination of employment contract;
• companies with more than ten employees are required to check in and out. of employees, either through timesheet or electronic timesheet;
• the labor legislation provides for the application of fine to the employer in cases where the bank of hours is used improperly, that is, in disagreement with current legislation.

Bank of hours or overtime: which is the best option?

Despite the differences, within the understanding of what is the bank of hours and overtime, both can be beneficial to the company, but it is necessary analyze the environment as a whole, including the needs of employees.

If, on the one hand, overtime generates greater profitability for the employee, the bank of hours generates more flexibility.

The hour bank works most effectively to:

In some cases, collective agreements and agreements allow for mixed compensation: setting a maximum limit of hours to be compensated per hour bank, and exceeding this limit, the hours are paid in overtime. So, the best option is the one that meet company and employee.

In order for the bank of hours to function properly, avoiding fines and other legal problems, the company cannot forget to make an adequate time control.

And if you still don’t know or have any doubts about how to control your team’s working hours in a safe and assertive way, check out the Guide: How to control time and work hours and stay on top of this subject!

Help your employees work better

Like the bank of hours, corporate financial benefits are a way to encourage employee engagement and stop turnover in the company.

Get to know the tool HR Consultant UKy and find out how the system that implements payment on demand works, that is, employees of a company can advance part of their salaries when they need it.

This tool is changing the way employees handle their salary and generating more satisfaction and motivation at work.

HR Consultant UKy can be one of the benefits most valued by those who work in your company. Talk to an expert and learn more!

Source: https://t-tees.com
Category: WHAT