Annualization of working time : intuitive calculation


Seasonal activity confronted with the modulation of working time ?

Do you want to control the annualization of working time ?
Give more visibility to employees, to monitor annualized hours
Early rest to avoid overtime at the end of the period
Print the annualization provisional schedule


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Annualization of working time - what is it ?

Before giving you the keys on how to automate the annualization of working time using our annualization software, we will start by defining the annualization of working time, which is a device for organizing working time over an annual period.
During this period of 12 consecutive months, the employee will have weeks of high activity, or low activity depending on the peak of activity.
Indeed, the objective of the annualization is to organize the work schedule of the employee, according to the periods of more or less sustained activity.

To summarize, the annualization of working time is when the working time varies according to the activity.

This system is framed by labor law. It is based on a collective agreement concluded within the company.
This agreement on annualization of working time gives rise to a structuring document which fixes the management rules for annualization...This must specify, among other things :

º The number of annual hours to be worked for the employee
º The maximum weekly working time, for example, a ceiling of 48 hours per week
º The conditions for triggering overtime.
º The conditions for recovering or paying overtime at the end of the period, if applicable.
º The reference period of annualization over 12 consecutive months, of the calendar year or any other period.
For example, a reference period can extend from September of year Y to August of year Y + 1.
º The types of absences considered as effective working time.
As a general rule, this types of absences is deducted from the hourly annualization quota.

Concrete example of how annualization works

On the basis of the modulation agreement, the employer has the option of varying the weekly working hours.
The agreement must specify the trigger limit for overtime to be paid.
Assuming that the limit for counting overtime is set at 44 hours.
Under these conditions, the hours below 44 hours are placed on a modulation counter.
That is to say that the weeks of high activity and low activity compensate each other, without generating overtime to pay.
For example, if the average weekly duration is equal to 35 hours, the modulation operation is such that :
º Week 1, hours worked = 30h, modulation credit = -5h
º Week 2, hours worked = 40h, modulation credit = + 5h
º Week 3, hours worked = 45h, modulation credit = + 9h...+ 1 hour of overtime to pay, because the limit for counting overtime is set at 44h.

Note that the modulation hours may give rise to compensatory rest, in order to readjust the modulation schedule.
In all cases, the excess modulation hours at the end of the year are paid in overtime, or deducted over the following period.

To make your life easier, our annualization software offers automation of these different hourly calculations.

How to effectively manage the annualization of working time ?

The annualization of working time is an advantageous approach, because it makes it possible to optimize resources by adapting the schedule according to the activity of your company.
However, its day-to-day management can prove to be tedious because the collection of the hours worked implies the adhesion of the employees, then a rigorous recording of the hours worked.
The annualization schedule must also include paid leave, then any absences such as sick leave, parental leave, etc.
Things can get even more complicated if the employee has to change the hourly volume of the employment contract.
For example, the fact of reducing the average weekly duration from 35h to 28h for an employee wishing to work part-time at 80% for example.

Yes ! It's like a gas factory when the annualization of working time is managed manually or in an artisanal way by paper sheet.

To simplify your life, as a working time software publisher, we have taken the option of building a dedicated annualization software.
As we support companies in working time management issues, we have noticed that the automation of the annualization of working time is becoming obvious, as HR software publishers do not jostle each other on this subject.
Consequently, on the basis of the concrete cases encountered, we have compiled the different management modes to offer you an interface allowing to simplify things in the annualization of working time monitoring.

Even if the rule for managing annualized contracts seems clear, it is clear that not all companies have the same work organization constraints.
For example, within the same company, some employees may have annualized hours, others not !
More specifically, it is common to encounter situations such as :

º Employees with managerial status on a fixed-day basis, with an entry of working time per daily unit

º Employees with weekly hourly monitoring, of the 35-hour type ... With the possibility of generating increased overtime

º Employees on annualized contracts with or without recovery of hours, during the period.
This last point is very structuring because it makes it possible to set the rules for recovering hours.
In this regard, some companies wait until the end of the annualization period to recognize and process overtime.
Others, on the other hand, allow their employees to recover overtime in advance.
To allow such monitoring, our HR annualization solution enables negative overtime to be activated in order to highlight deficit weeks (low activity), and excess weeks of high activity.
These weeks can therefore be aggregated at the level of an annual counter in order to display the annualization balance.
In this context, it becomes easy to plan compensatory rest for the employee, in order to avoid excessive overtime credit at the end of the period.

Ultimately, thanks to an annualization automation tool, you will be able to facilitate the management of the annualization of working time on a daily basis.
Our hr annualization solution offers you the following functionalities :
Annualization board table to highlight the planned hours, the hours worked and the rest to be worked
User interface to give employees more transparency in monitoring their working hours
Hour meter offering traceability of hours acquired for recovery or remuneration
Annual planning to print, with weekly or monthly time modulation

Annual indicators of working time modulation

Annualization is a form of modulation of working hours, insofar as working time is not linear over the entire annual period.
Therefore, managing annualization involves human resource planning.
The monitoring of hours worked is based on a provisional annualization schedule.
In some cases, the annualization agreement may set as a prerequisite the establishment of an annualized hours schedule.
This makes it possible to have visibility of the planned hours...Both for the employee and for the employer.

In accordance with the annualized employment contract, the modulation schedule must include :
The number of hours to work per year, for example: 1607 h
The number of calendar days in the calendar year, i.e. 365 days
The number of days not worked, considering :
- Weekly rest = 52 * 2
- Paid annual leave = 25 days
- Public holidays (according to the company's collective agreement)

Working time annualization simulator

The annualization provisional planning aims to completely replace the Excel table followed by annualization of hours.
Our tool easily adapts to your annualization reference period, over twelve (12) consecutive months.
This provisional schedule can be used as a working time annualization simulator.
It thus makes it possible to visualize at a glance the overall hours planned on the basis of the reference period.
Some companies using the JOUROFF annualization software use it as an annualization of hours simulator, thanks to the option of entering forecast hours.
On the interface side, this annual hours simulator offers the scheduled hours line, in advance from the start of the period.
At the same time, the line of hours worked makes it possible to monitor the hours worked week by week.
This annualization simulator also offers a paid leave section, corresponding to the annual leave to be taken !
The other absences section allows you to track absences such as sick leave, parental leave, etc.
This simulator of annualized hours in the form of a provisional schedule allows efficient monitoring of annualized hours.
In fact, the forecast hours dimension makes it possible to simulate examples of calculating the annualization of hours.

Annualization of working time : negative hours

Our annualization tool allows us to highlight negative hours due to low activity weeks.
With a single click, you can indicate to the software the generation of negative overtime hours, in order to precisely determine the periods during which the employee worked below the weekly working time.
However, the reading should be done over the whole year, because during high activity weeks the system generates a positive credit.
These different strong and weak weeks compensate each other during the year.

At the end of the period, we can expect several situations :

hours of annualization not completed
The purpose of the provisional planning is to avoid this kind of situation where we end up with a negative balance.
The schedule should serve as a benchmark to better anticipate things.
However, the hours of annualization not carried out can be linked to an unexpected drop in activity, where the company has not been able to occupy its human resources.
In this case, the annualization agreement must set the rule for making up hours, but also the conditions for postponing working hours from one year to another.

Regularization of the counter at the end of the modulation period
To regularize the hours at the end of the period, our annualization software offers a feature called Adjustment.
Indeed, a debit or credit type adjustment can be made on the meter, at the end of the modulation period.

Discover the other fields of application of the annualization of working time software

JOUROFF as a working time software allows you to digitize all the time recording or leave request processes.
You can compose your HR software according to your business needs. Our HRIS solution can be used in the following different cases :

Management of annualized contracts and calculation of hours worked on company activities
Monitoring of annualized working hours indexed to projects (time per project)
Annualization of working time and planning of paid leave and absences
Modulation of working time with recovery of hours.
Time management with calculation of overtime and surcharge.
Example, hourly volume from 35 hours to 43 hours, with application of an increase rate of 25%, then 50% beyond 43 hours
Entering the hours worked via the timesheet module, then posting the annualization
Modulation of hours following a half-yearly or annual period (the case of annualization of working time)
Management of an annual hourly counter per employee. The working hours software offers the configuration of the weekly thresholds to supply the excess hours per week.
Example: for a 22-hour part-time contract. the working time software assigns a threshold of 22h to trigger additional or overtime hours according to the employee's profile.
Possibility for the employer to manage the annualization of working time together with the activity monitoring, namely the monitoring of salary costs related to the hours worked.

Functionalities of the annualization of working time software



HR settings
Application domain
Possibility for the employer to define the weekly duration worked per employee
The weekly working time is written on the employee's contract. In terms of the annualization software, this parameter makes it possible to monitor the pace of work and any overtime.
Weekly overtime calculation threshold
According to the collective agreement on annualization of working time, you have the possibility of setting a threshold to evaluate the weeks of high or low activity, depending on the contract of each employee.
This threshold does not necessarily concern annualized contracts, it can be used within the framework of a classic overtime management.
Note that for the annualization of working time, the collective agreement must provide for a ceiling on the maximum number of hours to be worked, most often 48 hours.
Calculation threshold for hours worked on Sunday
This setting is for companies where employees can work on Sundays. In this case, the annualization software proposes the application of a specific increase threshold.
Threshold for calculating overtime hours linked to public holidays
As for Sunday worked, the annualization software offers the possibility of defining a specific threshold for work during public holidays
Weighted activities and specific hours
In some cases, the annualization agreement stipulates specific hours, type, night work, or even certain time slots of the day.
For example, overtime hours from the 8th to the 10th hour worked.
In this type of scenario, the annualization software offers a module called weighted activities. This module allows you to define time slots and premium rates in all flexibility.
Annualization of working time and compensatory rest
Even if in most cases the recovery of hours occurs at the end of the annualization period, it is clear that some employers offer their employees to recover hours during the period, in the form of compensatory rest.
In terms of the annualization software, each time recovery request is submitted to the HR manager for validation.
Annual counter monitoring and overtime payment
According to the annualization of working time agreements, overtime acquired may be remunerated at the employee's contractual hourly rate.
To get an overview of the hourly quota, the annualization of working time software offers a dedicated interface for traceability of overtime in the form of a periodic counter.
Entering realized times
Time entry can be done according to two sources. On the one hand, there is the annualization provisional schedule which allows the filling of hours in advance of the phase, in forecast mode ... On the other hand, there is direct entry via a timesheet and activities.
Validation of hours sheets
This option of validating timesheets is not mandatory. But for companies that want it, the annualization software offers an interface for validating timesheets submitted by employees.
Note that our working time tool offers two time entry modes ... In the first case, the employee is autonomous by accessing the timesheet tool, in order to enter and submit their timesheets. In the second case, the hours can be entered by the HR manager.
In the latter case, the employee continues to declare his working hours on a paper sheet, then the manager is responsible for posting them in the annualization tool.
Number of hours to work per year
This is the annualization quota, ie the number of contractual hours that each employee must work per year.
This annual hourly volume is set by the collective annualization agreement. On the annualization software side, this parameter enables the annualization monitoring dashboard.