The working time account is regulated by §86 and §87 of the Labour Code. It is the most flexible form of working time scheduling, which allows employers, especially those who run a business, to respond flexibly to changing work demand depending on the sales of their production.
The timesheet is a very effective tool. It enables employers to cope with fluctuations in demand, whether these are natural seasonal fluctuations or the impact of unexpected situations or crises. For all industries prone to fluctuations in demand, the working time account is very suitable.
Balancing period
A working time account scheme means that employees work during a compensatory period, the length of which is determined by the employer, in excess of normal working hours, and work even less in the following period. However, during the compensatory period, employees should work a number of hours equivalent to the average weekly hours, i.e. 40 hours.
The compensatory period is normally 26 weeks, but the employer may set it at 52 weeks in agreement with the trade union. During this period, the employer may assign less or more work than the standard weekly working time, even without the employee’s consent (but must maintain the breaks provided for by law, rest periods, etc.).
Functioning of the working time account
The employer keeps two things for each employee, namely:
- a payroll account
- a record of the employee’s permanent wage and the actual wages to which the employee is entitled with his actual hours of work
- a working time account
- the weekly working time and the actual hours worked by the employee
At the end of the balancing period, the two accounts shall be balanced. The working time account shall establish whether the fixed hours of work for the entire compensation period have been met. Care must be taken to ensure that the balancing period includes the correct proportion of periods when the demand for work is higher and then lower. If the set time for the compensation period is exceeded, this is overtime and if the total of the permanent wages paid results in a higher wage claim, the wage is compensated. Conversely, if the employee has worked the same or fewer hours than the stipulated weekly period, no wages shall be paid and the permanent wages paid shall not be refunded
Wages
The employer pays the employee a so-called permanent wage in the working time account, which is guaranteed to be at least 80% of the employee’s average earnings and is only reduced in cases where the employee has not performed work for a reason on his/her part, although he/she should have worked according to the shift schedule (e.g. due to taking leave, unexcused absence or obstacles to work on the employee’s part).
In addition to the Labour Code, the account of working time is governed by a collective agreement or an internal regulation of an employer who does not have a trade union.
Benefits
- Companies do not have to get rid of employees,
- Efficient use of workforce,
- Scheduling shifts according to actual need,
- Savings in operating costs,
- Security of a steady income for employees.
Introducing a working time account
The Labour Code directly lists exhaustively the public sector employers providing salary instead of wages as remuneration to employees for which the use of a working time account is prohibited.
Furthermore, the working time account cannot be used for work performed under agreements on work performed outside the employment relationship.
Other employers may introduce a working time account at their discretion, as the Labour Code states that the employer schedules working time.
Where are working time accounts used?
Working time accounts are mainly used by manufacturing companies operating on a shift basis, especially in the automotive industry. Given the 26-week compensation period, this solution is more suitable for short-term crises or seasonal fluctuations.
Recommendations
In our practical experience, the following factors are key to the successful implementation of a working time account:
a) Tailoring the timesheet account to the specific needs of the operation.
b) Thorough preparation of the implementation process.
c) Setting up a team responsible for implementing the changes. This team should include not only attorneys and representatives from the payroll accounting department, but also representatives from the software vendor. The active participation and support of the employer’s management also plays an important role.
d) Effective communication to employees, clearly outlining the implications of the new scheme. Emphasis should be placed on the benefits that the new system brings to employees.
