Working time compliance across borders: Practical insights for employers

Germany

The daily working time maximum is eight hours per day, but this can be extended to up to 10 hours per day only if the average working time does not exceed eight hours per day over a six-month or 24-week reference period. Employees are entitled to a 30-minute break if their working time exceeds six hours, and a 45minute break if their working time exceeds nine hours. Additionally, there must be at least 11 consecutive hours of rest between the end of one workday and the start of the next workday.

Work on Sundays and public holidays is generally prohibited, although exceptions exist for sectors such as health care, police, restaurants, transport, and emergency services. If Sunday work is permitted, a replacement rest day must be granted.

Italy

According to Italian law, working time is mainly governed by Legislative Decree no. 66/2003. The normal working time is set at 40 hours per week, although the applicable National Collective Labour Agreement (NCLA) may provide for a lower weekly limit. In any case, the maximum weekly working time – including overtime - may not exceed 48 hours over a seven-day period, calculated over a reference period that is generally four months and may be extended by the applicable NCLA to six or 12 months due to objective, technical, or organizational reasons. Furthermore, employees are entitled to: (i) at least 11 consecutive hours of daily rest within a 24 hour period, (ii) at least 24 consecutive hours of weekly rest within a seven-day period, usually combined with the daily rest (typically on Sunday), and (iii) a rest break (as determined by the applicable NCLA), if daily working time exceeds six hours.

Mexico

According to Mexican labor law, work shifts are mainly governed by the Constitution and the Federal Labor Law. The Constitution was recently amended on March 3rd, 2026 to reduce the maximum work shift to 40 hours a week with a gradual implementation to be completely reached in 2030. The Federal Labor Law will be amended within the following 90 days. In terms of the Federal Labor Law, Tthe weekly work shifts are limited to 48 hours per week for day shifts, 45 hours per week for mixed shifts, and 42 hours per week for night shifts. Employees and employers can contractually agree work shifts below the legal limits. If contractual work shift and/or legal limits are exceeded overtime is triggered. Furthermore, employees are entitled to: (i) at least 30 minutes of daily break to rest or eat meals as part of the work shift, (ii) at least one paid day off per week for every six days of work, and (iii) overtime, among others. Please note that there is an initiative to reduce the work shift gradually to reach 40 hours a week as explained below.

Spain

In Spain, working hours and overtime are primarily governed by the Spanish Workers’ Statute (Estatuto de los Trabajadores) and the applicable collective bargaining agreements (CBAs), which establish mandatory limits and minimum standards applicable to most employment relationships.

As a general rule, the maximum ordinary working time is set at 40 hours per week based on an annual average (although the intention of the government is to reduce this to 37.5 hours per week). This means that weekly working time may vary throughout the year provided the annual average does not exceed the statutory limit. CBAs, which play a central role in Spanish labor law, frequently introduce more specific rules and may reduce the maximum working time.

Regarding daily working time, employees may not work more than nine hours per day, unless a different distribution is agreed through a CBA or agreement between the company and the employee’s representatives, provided that the rest period between working days is always respected. Employees under the age of 18 should not work more than eight hours per day.

Overtime is defined as any hours worked beyond the agreed ordinary working time and shall be compensated by time off or economically.

Likewise, Spanish labor law places a limit on the number of overtime hours an employee can work. In general, employees may not perform more than 80 overtime hours per year, except in certain exceptional circumstances. It should be pointed out that overtime duly compensated with time off within four months after its performance is not taken into account for the purposes of calculating the maximum 80-hour limit.

The Netherlands

The following legal limits are applicable to employees aged 18 and older:

• Maximum 12 hours per day.
• Maximum 60 hours per week.
• Maximum 55 hours per week over a reference period of four weeks.
• Maximum 48 hours per week over a reference period 16 weeks.

Specific rules apply to night shifts, seasonal workers, and certain professions such as truck drivers or doctors. Kindly note that the Dutch Working Times Act is not applicable to employees earning more than three times the minimum yearly wage.

With regard to breaks, if an employee works more than five-and-a-half hours, the employee is entitled to a 30-minute break, which may be split into two breaks of 15 minutes each. If an employee works more than 10 hours, they are entitled to a 45-minute break, which may be split into several breaks of 15 minutes each.

As for resting times, after a working day, the employee must have a minimum of 11 hours of continuous rest. Additionally, the employee must have a minimum of 16 hours of continuous rest per week.

The United States

From a federal perspective under the Fair Labor Standards Act (the FLSA), there is no limit on the number of hours employees age 16 and over may work in a workweek. Nor are there any mandated meal and rest breaks under the FLSA, though when employers do offer short breaks, federal law considers the breaks as compensable work hours.

State law, however, varies, quite significantly. While there are generally no limitations on the amount of hours an employee can work per week, some states and localities have implemented requirements pertaining to meal and rest breaks, and other laws which may be applicable to workers working in particular industries.

Germany

Overtime is allowed if the following conditions are met:

• The total working time does not exceed legal limits, which is normally a maximum of eight hours per day on average.
• (i) Overtime is ordered or approved by the employer, or (ii) overtime is necessary in emergencies, or (iii) a flexible working time arrangement is in place.

Payment for overtime can take the form of either extra pay or paid time off. When extra pay is provided, overtime is usually compensated at the normal hourly rate, as overtime bonuses are not required by law. For higher paid employees, overtime is commonly included in their compensation, although there are several restrictions for “all-in-contracts.” Alternatively, employees may receive time off instead of pay, known as compensatory time. In this case, one hour of overtime typically equals one hour of paid time off, which is a very common practice in Germany.

Italy

Overtime work is permitted subject to the conditions and limits set out by Italian law and the applicable NCLA. The performance of overtime is allowed upon a prior agreement between employer and employee and within an annual maximum limit of 250 hours. Overtime work must be compensated with the pay increases provided for by the applicable NCLA, which may also provide, in addition or as an alternative to such pay increases, for the granting of compensatory rest periods.

Mexico

If contractual work shift and/or legal limits are exceeded, overtime is triggered. There are no exempt employees in Mexico, and every employee is entitled to overtime even if in practice it is usually paid to workers and blue collar employees. The Federal Labor Law still establishes that the first nine extra hours of overtime are permitted and paid on a double salary rate (200 percent salary rate) and cannot exceed three extra hours per day and three days per week. If overtime exceeds the aforementioned limits, it is paid on a triple rate (300 percent salary rate) and fines could be triggered for the employer in case of a labor inspection. Overtime that exceeds legal limits (more than nine extra hours per week, more than three extra hours per day and/or three days per week) must be considered as part of the salary for social security contributions subject to the applicable legal caps. Overtime that exceeds legal limits can also trigger other liability for the employer in case labor exploitation is claimed and proved. The Constitutional reform establishes that the first 12 extra hours of overtime are permitted and paid on a double salary rate (200 percent salary rate) and cannot exceed four extra hours per day and four days per week. If overtime exceeds the aforementioned limits, it is paid on a triple rate (300 percent salary rate). Overtime that exceeds legal limits (more than twelve extra hours per week, more than four extra hours per day and/or four days per week) must be considered as part of the salary for social security contributions subject to the applicable legal caps. Overtime that exceeds legal limits can also trigger other liability for the employer in case labor exploitation is claimed and proved.

Spain

Overtime work is permitted but subject to strict regulation. In the absence of an agreement, the general rule for overtime is that it must be compensated by time off within four months of being worked.

The Netherlands

Overtime is allowed provided it stays within the legal limits described above. Whether an employee is required to work overtime is dependent on the contractual arrangements between employer and employee. If overtime has not been contractually agreed upon, an employee may still be required to work overtime based on the principle of being a fair and reasonable employee (goed werknemerschap), particularly if circumstances necessitate it, such as in the case of an emergency.

Whether overtime is compensated depends on the contractual arrangements between the employer and employee. Absent contractual arrangements, overtime is paid if requested by the employer. Instead of overtime pay, it can also be agreed to in the employment agreement that overtime is compensated in time (time for time). Furthermore, it can be included in the employment agreement that overtime pay is deemed to be included in the salary.

However, if employees earning less than three times the minimum annual wage are not compensated for overtime, their average wage (calculated as salary divided by total hours worked) must not fall below the statutory minimum wage.

The United States

Overtime is applicable for all “non-exempt”* employees under the FLSA. The FLSA requires overtime payment to “non-exempt” employees at a rate of one-and-a-half times the employee’s regular rate of pay for each hour worked over 40 in a given week. Certain states also implement daily overtime rates or double time rates depending on the hours worked in a day or a week.

*Certain employees who are exempt under the FLSA (executive, administrative, professional, computer employees, and outside sales employees) are not overtime eligible.

Germany

Employers are responsible for accurate working-time records and for implementing reliable time-tracking systems. If there is a works council, rules for working hours and overtime are co-determined.

Italy

The main challenges for employers in managing working hours and overtime include the correct application of overtime rules and compliance with the weekly/annual limits set out by Italian law and the applicable NCLA. Employers must also ensure proper compensation of overtime to avoid administrative fines and employment-related disputes.

Mexico

The main challenges for employers in managing working hours and overtime include the correct application of legal limits and overtime provisions in compliance with the limits set out by applicable law. Employers must also ensure proper compensation of overtime to avoid administrative fines, social security audits, and employment-related disputes. An additional challenge is having the burden of proof of the work shifts worked by employees in case of litigation or review of authorities, especially considering when employees have flexibility to work in different times, places, or even remotely.

Spain

From an employer’s perspective, compliance with working time regulations presents several challenges. One of the most significant issues is the obligation to implement accurate and reliable working time recording systems, as this is a frequent focus of labor inspections and an area where penalties may be substantial. Disputes concerning overtime are also common, particularly regarding whether overtime was effectively worked, properly authorized, or correctly compensated.

The Netherlands

Employers must accurately record employees’ working times to comply with statutory requirements. With time-for-time arrangements, if compensatory time off is not taken promptly and the employee’s salary is near minimum wage, their average salary may fall below the statutory minimum. Non-compliance can result in administrative fines. Works councils also have a right of consent regarding working and resting time schemes.

The United States

Employers must accurately record employees’ working times, including clocking in and clocking out for the workday, meal and rest breaks. And, for all hours worked over 40 in a given week, the employer must ensure payment at the one-and-a-half times rate the regular rate of pay is made. One issue that employers run into is that the “regular rate of pay” is interpreted under the FLSA to include nondiscretionary bonuses. If this nondiscretionary bonus is not included in the overtime rate, employers may unintentionally pay overtime at an improper rate, thus incurring potential liability.