Do I have to take compensation for overtime as days off, or can I request to have it paid out with my salary?

The question of how your overtime is compensated (time off or money) essentially depends on what is laid down in your employment contract or in the relevant collective/company agreements:

• If the contract or collective agreement stipulates Freizeitausgleich (compensation in the form of time off) as the exclusive method of compensating overtime, you are required to take this time off instead of money, and the employer is not entitled to pay it out in cash instead.

• If the contract or agreement provides for Auszahlung (cash payment) of overtime, you are entitled to have those overtime hours added to your salary at the agreed rate or percentage.

• If the contract is silent and does not specify how Überstunden (overtime) are to be compensated, you are entitled to cash payment for each additional hour under § 612 BGB (“Übliche Vergütung” – usual remuneration), because the law assumes that services rendered for consideration are, by default, compensated with money, not automatically with time off.

Key points

• Carefully review your employment contract, any Betriebsvereinbarung (works agreement) and/or Tarifvertrag (collective agreement) to see exactly what has been agreed regarding overtime compensation.

• In case of a dispute, you can seek help from your trade union (Gewerkschaft) or consult a lawyer specialised in labour law (Arbeitsrecht).

Conclusion

• Contract stipulates Freizeitausgleich ⇒ You must take time off as compensation.

• Contract stipulates Auszahlung ⇒ You may demand cash payment for your overtime.

• No clause at all ⇒ You are entitled to cash payment by default under § 612 BGB.

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• The authors and editors of this website strive to provide accurate information based on extensive research and the evaluation of multiple sources. Nevertheless, errors may occur or some information may be incomplete or not fully confirmed. Therefore, please regard the information in this article as an initial point of reference and always contact the competent authorities or professional advisers for binding and up-to-date information.