To adapt to the specificities of the hotel and restaurant sector, French law provides for a number of legal provisions. Annualization, in particular, allows employers to organize their employees' work schedules based on activity volume, peak hours, or seasonality.
The annualization of working time represents a major challenge for managers. More practical and more economical, it is also a provision that helps ensure the well-being of employees. This method of calculating working hours allows establishments in the catering sector to adapt to the rhythms of seasonality and to the peaks of activity.
Long-awaited by our customers, this feature is now available on Skello. But first, let's go back to the basics of this legal provision.
What is annualized working time?
Annualized working time is a method of calculating working hours for employees. It allows more flexibility for permanent employees and allows them to adapt their work to actual production needs. Annualized working time allows them to spread working hours over the reference period (10, 12, or 14 months, for example) and thus compensate for the hours worked.
Set at 35 hours per week, the duration of working time is a legal obligation. However, some businesses are dependent on peak activity or operate mainly according to the seasons or traffic. They must therefore organize employees' working hours accordingly. Annualization thus allows employees to work beyond the 35 hours per week in high season and, as compensation, these same employees work less than 35 hours per week during the low season. Please note that French law stipulates that the maximum working time is 48 hours in a single week and 44 hours per week on average over a period of 12 consecutive weeks.
Simple and customizable
One view per month
A reminder sheet on annualization
Upload your file
What type of business can use annualized working time?
Annualized working time is useful for businesses whose working hours depend on periods of activity. Thus, businesses subject to fluctuations in activity often favor annualization as a basic calculation method: catering, tourism, leisure, hotels, accommodation, or even sectors linked to school holidays (leisure centers, water sports centers, amusement parks, etc.). The variations will thus distinguish between busy periods (peak activity, holidays, one-off events, recurring events, etc.) and slow periods (decrease in activity).
Annualization of working time: what does the law say for companies?
As the law provides, if the company alternates between busy and slow periods, it can set up a working time arrangement over a period longer than a week and set at a maximum of three years.
What are the advantages and disadvantages of Annualization of working time?
Advantages:
- Guarantee flexibility. For employees, the schedule becomes more flexible and income is fixed throughout the year (if the employer applies salary smoothing).
- Allows adaptation. Annualization is suitable for companies whose activity fluctuates according to the time of year. The company can thus adjust its employees' schedules according to the weekly workload.
- Reduce the cost of overtime. Annualization removes overtime surcharges. Also, in the event of increased activity, it is not necessary to hire additional staff.
- Avoid partial unemployment. Employees of companies whose activity is linked to seasonality often risk partial unemployment during the low season. Annualization allows employees to keep working throughout the season.
Disadvantages:
- Learn to anticipate. Implementing annualization requires precise organization of schedules. You must have a precise calculation of everyone's working hours.
- Learn to adapt. Annualization requires adaptation to recurring changes in schedules. You need to equip yourself with planning or schedule management tools like Skello.
- Less motivated teams. Flattened pay can be a hindrance for some employees. While income stability can be a benefit, it can also have negative impacts. The lack of overtime results in a significant loss of earnings. Feeling like you're working a lot during a week and being paid the same as during the low season can be demotivating for teams.
How do I implement annualization in my organization?
With a branch or collective agreement
To implement annualization of working time, you must sign an establishment agreement or company agreement. Failing that, you can use this system through a branch agreement or with the application of a collective agreement.
To apply annualization in an establishment, employers must meet a single condition: first discuss the organization of work with all staff representatives and/or the works council.
Without collective agreement
Even if no collective agreement is concluded, the company can implement a working time arrangement over a reference period that exceeds one week. However, this reference period is limited to:
- 9 weeks when the number of employees is less than fifty;
- 4 weeks for companies with fifty or more employees.
However, the employer must first consult employee representatives about its intention to apply new provisions concerning working hours. It submits to them for their opinion an indicative program of this variation in working time before its application. As for employees, they are informed of the terms of application of these new rules within a period of greater than or equal to 7 working days.
Is it possible to annualize employees on a case-by-case basis?
No, annualization does not authorize special treatment of employees. This system is reserved either for all employees of the establishment, or for all staff in the same department or team.
How to calculate the annualization of working time?
The calculation of the annualization of working time is based on the working time worked per week.
- For an employee working 35 hours per week, the annualized working time is 1607 hours.
- For an employee working 39 hours per week, the annualized working time is 1787 hours.
Once the type of contract and the associated working time have been determined, you simply need to add up the working time of each of your employees for each month to count the hours duly worked. In the case of flexible working hours, or in the case of a reference period other than a full year, the hours will be counted pro rata to this reference period.
Note: the total time worked during the reference period must be the same as the total time the employee would have had to work if their contract provided for a 35-hour week. Only a collective agreement allows for a lower or higher total duration. Obviously, it cannot exceed the duration corresponding to 39 hours of weekly work.
To help you calculate your annualized working time, Skello offers you an Excel table on the annualization of hours.
Annualization and reference period: what is it?
The reference period is an integral part of annualization. It consists of establishing the start of the counting of days.
- In the case of a collective agreement: the reference period can extend over one year
- In the case of a branch agreement: the reference period can extend over three years
The agreement defines the specific conditions governing changes in working hours or schedules, pay, and absences during the reference period.
Is it possible to annualize a part-time employee?
Yes, a part-time employee can be annualized. However, this type of annualization has a specific feature. Its implementation cannot be imposed on this employee under such a contract. Indeed, part-time employees must give their consent to switch to annualization. Please note that if the legal weekly working time is reached, the employment contract will have to be reclassified.
What is the impact of annualization on overtime?
The calculation depends on one element: has a company agreement been concluded or not?
If there is an agreement, an upper limit on working hours must be defined. Once confirmed, simply note the number of hours worked per employee each week.
- If the limit is exceeded: the employee receives overtime pay equivalent to the number of overtime hours worked.
- If the annualized hours quota is exceeded: the employee receives the balance of their remaining overtime hours at the end of the year.
Without agreement: the manager must display the full hours schedule for each employee in the establishment.
Let's take the case of an employee on a 35-hour contract and whose maximum threshold has been set at 39 hours:
- Week 1: 43 hours
- Week 2: 41 hours
- Week 3: 33 hours
- Week 4: 41 hours
The employee worked 158 hours in total, or an average of 39.5 hours per week. He exceeds the maximum limit set above at 39 hours and will therefore be entitled to 0.5 hours multiplied by the number of weeks (four), or 2 hours to be paid as overtime. Find out how to use Excel, a versatile tool, to create a table for calculating overtime.
With gta software, you can automatically manage your employees' annualization with time and pay tracking. Try Skello now.
