Timebank and avspasering - what are the rules?

In Norway, we have the option of avspasering, meaning time off in lieu of overtime. This often leads to disputes with employers and uncertainty, although it should not, because both legal regulations and internal company agreements set out how and when you can work beyond standard working hours, and what rights and obligations arise from such hours. We will therefore explain the rules for overtime, how timebank works, and what avspasering looks like?

TIMEBANK AND AVSPASERING - WHAT DO THEY MEAN?

Start by clarifying the most important points:

Timebank - a bank where you accumulate hours worked beyond the standard contractual working time.

Avspasering - setting those hours aside for later in the form of days off. This is a voluntary agreement between employee and employer (although sometimes imposed from above).

For example: if you normally work 4 hours a day, and one day you work 4 hours extra, you then have 4 hours in the time bank. You are not entitled to pay for that time. However, you have the right to take it later in the form of paid days off (in addition to your standard paid holiday). In total, they will be paid at 100%, just with a delay.

Another example involves avspasering of overtime. Let us say you work full time, 40 hours/week, and in one week you have built up 8 hours in the time bank. Working beyond 40 hours obliges the employer to pay an overtime supplement (at least 40%), and in addition you have the right to take a day off paid at 100%. In the end, those extra hours will be paid at 140% - 40% immediately, 100% when you take the days off.

WHAT COUNTS AS OVERTIME WORK?

We speak of overtime when an employee works beyond the statutory limit for standard working hours - that is what Norwegian regulations say. In practice, overtime applies when you work:

• More than 9 hours a day, or
• More than 40 hours a week.

If you work beyond your standard working hours set out in your contract, but still less than 9 hours a day or 40 hours a week, this is considered "merarbeid", meaning additional work. Such work does not entitle you to extra overtime pay, only to the standard hourly rate, and does not entitle you to avspasering.

Overtime starts when you work more than 9 hours per day or more than 40 hours per week. In that case, you are entitled to an overtime supplement of at least 40% of your rate.

However, if you have agreed to "average calculation" (gjennomsnittsberegning), you can agree individually with your employer that over 24 hours you work a maximum of 10 hours, and over 7 days - 48 hours. In this case:

• Weekly working time is max 50 hours (beyond this, overtime is counted)
• Averaged working time over an 8-week period is max 48 hours/week - therefore the maximum over 8 weeks is 48x8 = 384 hours (beyond this, overtime is counted)
• Over 52 weeks, working time may not exceed an average of 40 hours per week - therefore the number of hours per year is 40*52 = 2080 (beyond this, overtime is counted)

If the company you work for is covered by collective agreements, these limits may be increased further. It is possible to agree on a maximum of 12.5 hours of work within 24 hours, max 48 hours within 7 days - averaged over 8 weeks with a maximum of 54 hours in a single week.

Alternatively, the company you work for may have an agreement with the Ministry of Labour, in which case the maximum working time can be as much as 13 hours within 24 hours.

HOW MUCH OVERTIME CAN BE WORKED?

The basic limit is 200 hours over 52 weeks. However, if the company is bound by a collective agreement (tariffavtale), there is an option to increase this limit to 300 hours. Everything depends on agreements concluded with the employee representatives in the company.

As for hours off in the time bank (timebank), there are no statutory rules on how they are used or carried over. You need written arrangements with your employer on this matter; in larger companies, this will be set out in the work regulations.

TIMEBANK - GENERAL RULES

In general, you can agree with your employer in almost any way, as long as it does not breach the Working Environment Act. Normally we talk about "plusstimer" - when we build up overtid or mertid (overtime) to be taken later - and "minustimer" - when we take too much time off compared with the overtime worked. The following rules apply:

• plusstimer - must be used within the relevant settlement period (usually a year). Only part of it can be carried over to the next period.
• minustimer - if they arise, they may be deducted from pay at the end of the settlement period.
• If plusstimer are not carried over, they should be paid out.
• Taking plusstimer is paid time off at the standard salary.
• Do not forget that the overtime supplement of at least 40% still applies.
• In most cases, avspasering days can be converted into money.

AVSPASERING - RULES IN PUBLIC-SECTOR COMPANIES

• In every case, prior approval from the employer is required to use avspasering.
• All plusstimer you have accumulated should be taken as time off. Therefore, at least four months before the end of the settlement period, you and your employer should plan the avspasering days off.
• A maximum of 50 overtime hours and 10 minustimer can be carried over to the next settlement period. If you exceed the limit of 10 minustimer, this will be deducted from your pay. Overtime above 50 is cancelled without compensation.
• Within one calendar year, a maximum of 180 overtime hours can be converted into avspasering.
• All plusstimer and minustimer must be used during the notice period.

WHEN CAN I USE HOURS FROM THE TIME BANK?

You can apply to use time off from the time bank at any time, but your employer has the right to reject the request if they consider it more beneficial for the business. The essential condition for taking time off under avspasering is that overtime beyond the agreed working-time norm has first been worked. In other words: first the overtime - then it is agreed and taken as paid days off.

SUMMARY

Managing overtime and avspasering (time off in lieu of overtime) is a complex process that requires both an understanding of legal regulations and the ability to plan effectively. The law sets the maximum amount of overtime an employee can work in a year, and also lays down the rules for compensation for overtime work. It is worth noting that many of these rules can be adjusted by internal company agreements. That is why it is so important for employees and employers to maintain regular contact in order to plan and settle overtime, which helps avoid potential misunderstandings and conflicts.