Lieu days

From CEOpedia | Management online

Lieu days are working days understood as non-working days, in order to compensate for the number of hours worked by an employee over a certain standard within a certain period of time.

Receiving overtime

The employee lends the opportunity to take over overtime hours worked in the company in the form of hours or days (depending on the amount of overtime). The employee may apply for compensation from the employer in the form of additional remuneration in the form of cash.

The employee is entitled to an allowance for overtime work in addition to the normal remuneration. Its amount depends on the situation in which an employee had to devote his time to perform this additional job:

  • night hours,
  • on Sundays and holidays that are non-working days for the employee,
  • on a non-working day given to an employee in exchange for work on Sunday or on a holiday, in accordance with the harmonograme of working time in force.

In the above cases, the employee is entitled to pay the supplement to the remuneration of 100%.

We are entitled to compensation of overtime worked in the amount of 50% if its work falls in:

  • at weekdays,
  • on Sundays and holidays that are working days for the employee, in accordance with the applicable working time schedule.

The situation is different when the employee applies to the employer for the settlement of overtime worked out. The use of overtime is not limited by the period in which these overtime worked. In this case, if the employee does not use the free days before the end of the settlement period, they pass for another period declared in the employee's application. The employer may give the employee the order to work overtime in any way. The employee is obliged to carry out the work order within a certain time. Refusal to perform overtime work may be justified if the instruction to perform it is contrary to the law, rules or contract of employment [1]. An important issue is that the employer can not plan work overtime. Number of overtime hours worked due to the special needs of the employer can not exceed 150 hours per calendar year for a particular employee [2]. The absolute prohibition of working overtime applies to:

  • pregnant employees,
  • a juvenile employee,
  • non-disabled worker
  • employees employed in positions where there are factors that adversely affect human health

Compensation for overtime work by giving free time can be used in all working time systems.

The above rules are applicable in the Polish State. However, it should be known that not every state has a labor code regulating the duties and rights of employees and employers, for example: in England such regulations are determined by an employment contract signed with an employer, but they do not constitute the entire scope of the directives, there are also rights and obligations "implied".

In order to meet fully binding regulations and the contract, employers must check the employee's working time in detail, especially those who report overtime. The employer should have specific rules for measuring working time so that there is no doubt about the hours worked. Each employee should be identified and controlled whether the time he devotes is fully devoted to his work (if it is possible). The number of overtime hours should be confirmed each time by the employee's superior so that there is no doubt about it and the amount of remuneration is adequate to the time worked [3].

Examples of Lieu days

  • If an employee works more than the standard, agreed upon working hours for a certain period of time, a Lieu day can be given in order to compensate for the extra hours worked. For example, if an employee works 10 hours a day for 5 days in a week, they might be given a Lieu day off to make up for the extra hours worked.
  • Lieu days can also be given as a reward for employees who consistently meet or exceed their goals and objectives. For example, if an employee achieves a certain sales target or completes a project ahead of schedule, they may be given a Lieu day off as a reward.
  • Lieu days can also be given to employees who have been working for a certain period of time, such as a year or more. This is to show appreciation and reward their hard work and dedication. For example, an employee who has worked for two years with the same company may be given a Lieu day off to recognize their hard work and dedication.

Advantages of Lieu days

Lieu days are a very beneficial tool for employers and employees alike. They offer a number of advantages, including:

  • Increased flexibility and productivity in the workplace, as employees can take time off when it suits them rather than having to take a set number of days off in a year.
  • Improved morale, as employees feel more valued for their work and have greater control over their time.
  • Economic savings, as employers don't have to pay salaries for the days off and can save money on additional costs such as holiday pay or bonuses.
  • An improved work-life balance, as employees can take time off when they need it and don't have to worry about taking leave.
  • Reduced stress, as employees don't have to worry about fitting days off into their busy schedule.

Limitations of Lieu days

Lieu days are subject to certain limitations. These include:

  • They must be taken within the same period of time as they were earned. This means that if an employee works extra hours in one month, they must take the lieu day(s) within that same month.
  • Lieu days are not transferable or accumulable. This means that they cannot be transferred to another month, or added together to form a longer period of time off.
  • Lieu days cannot be used to replace public holidays. This means that if an employee works on a public holiday, they must take a separate lie day for that.
  • Lieu days cannot be paid out as a cash bonus. This means that the employee must take the days off work, as opposed to being paid for the extra hours worked.
  • Lieu days are also subject to the employer's discretion. This means that the employer may decide to deny a request for a lieu day if the circumstances are not suitable.

Other approaches related to Lieu days

Lieu days are a form of compensation for employees who have worked beyond their regular hours. Although the concept of Lieu days is fairly straightforward, there are several other approaches that can be taken to address the issue of overtime and overwork. These include:

  • Flexible Working Hours: Offering employees the flexibility to choose their own working hours can be an effective way to manage overtime. This can be done by allowing employees to start and end their shifts earlier or later than the usual working hours, or by having rotating shifts.
  • Compensatory Leave: Compensatory leave is another option that can be used to provide an incentive for employees to work overtime. Under this system, employees are paid for the extra hours they have worked, but they are also given additional days off to compensate for their extra efforts.
  • Overtime Payment: Overtime payment is perhaps the most common solution for compensating employees for extra hours worked. This approach is particularly useful for employees who are not able to take advantage of flexible working hours or compensatory leave.

In summary, although Lieu days are an effective way of compensating employees for their extra hours, there are other approaches that can be taken to ensure that employees are fairly compensated for their efforts. These include flexible working hours, compensatory leave and overtime payment.

Footnotes

  1. Panama Labor Laws and Regulations Handbook Volume 1 , International Business, USA, 2014,
  2. J. D. Hodgson , Technology and Manpower in the 1970's , Departamen of labor, U.S., 1972, p. 307-350
  3. TUnderstanding the Final Rule on the Fair Labor Standards Act Overtime Regulations ,Business and financial advisors, p. 3-5


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Overtime premiumGrant dateEmployee leasingShort rate cancellationConditions of employmentIndirect labor costsResidual paymentQualified automatic contribution arrangementGuaranteed renewable

References

  • Authors of IBP, (2014), Panama Labor Laws and Regulations Handbook Volume 1, International Business, USA,
  • Butler M.,Hardy S.,(2011), European Employment Laws, Spiramus, UK
  • Hart R. , (2004), The Economics of Overtime Working , Cambridge University Press, New York
  • Hart R. , (2010), Working Time and Employment , Revivals, USA
  • Hodgson J. D. (1972), Technology and Manpower in the 1970's ], Departamen of labor, U.S.
  • Lindsay C. W. (1946), "Decisions of the comtroller general of the united states" ] United States Government Printing Office,Volume 25.
  • Lee S., McCann D., Messenger J.C.,(2007), Working Time Around the World, International Labour Office, Geneva
  • Thoemmes J.,(2012),Organizations and Working Time Standards, Routledge, New York

Author: Zofia Rey