Tips and Tricks for Flexitime Agreements
Flexible working time models have been gaining importance in Austria for years. Many companies want to offer their employees greater freedom while ensuring legal certainty at the same time. A well-designed flexitime agreement provides the foundation for this by clearly defining the framework for flexible working hours. When such an agreement is professionally drafted, both employee satisfaction and operational planning reliability improve. In the following article, we highlight the key points you should consider when creating a flexitime agreement—practical, precise, and legally sound.
What Is a Flexitime Agreement and Why Is It So Relevant?
A flexitime agreement defines the time window within which employees may organize their working hours flexibly. At the same time, it specifies the rules for overtime, time tracking, and attendance. In Austria, flexitime agreements are regulated much more strictly than in Germany. Austrian labor law sets clear requirements for the flexitime period, maximum permissible working hours, and the handling of additional work.
Germany also has a statutory framework, but the German Working Time Act allows for greater flexibility. As a result, companies benefit particularly from clear internal regulations, as they reduce uncertainty and ensure transparency.
Key Terms: Core Working Time, Flexitime Bandwidth, and Flexitime Period
A flexitime agreement should always clearly define three key terms so that all parties understand the applicable rules:
Core Working Time
Core working time describes the period during which all employees must be present. It is especially suitable for roles that require coordination and collaboration.
Flexitime Bandwidth
The flexitime bandwidth defines the time range during which work may be performed. Even if there is no core working time, the bandwidth provides clear boundaries.
Flexitime Period
The flexitime period specifies the timeframe within which time credits must be balanced—for example, monthly or quarterly. In Austria, defining this period is mandatory, while companies in Germany have more discretion.
Tip 1: Choose an Annual Flexitime Period for Maximum Flexibility
Many companies opt for monthly or quarterly flexitime periods. In practice, however, both employers and employees benefit far more from an annual flexitime period, as it offers the greatest possible flexibility for balancing time credits. Employees can work flexibly over a longer period without being forced into short-term compensation.
Importantly, the flexitime period does not have to end on 31 December. Austrian labor law explicitly allows alternative definitions. It is therefore advisable to choose a period that ends after a quieter business phase—such as May or September. This ensures sufficient time to reduce accumulated time credits without doing so during peak periods or intensive project phases.
A well-chosen flexitime period strengthens flexibility while improving planning reliability. Companies can avoid bottlenecks, as time credits do not have to be used in critical months, and employees benefit from a much more relaxed approach to scheduling.
Tip 2: Define the Flexitime Bandwidth to Avoid a 50% Overtime Window
Many companies face the challenge of correctly evaluating overtime while keeping administrative effort low. In Austria, collective agreements (Kollektivverträge, or CAs) play a major role, as they precisely define overtime premiums. A common issue arises when the flexitime bandwidth is defined in a way that places employees into a so-called “50% overtime window.” In such cases, companies must distinguish between 50% and 100% overtime premiums—often creating unnecessary complexity.
A clear example is provided by the IT collective agreement. Under this agreement, working hours between 8:00 p.m. and 6:00 a.m. are subject to a 100% overtime premium. If employees work after 8:00 p.m. or before 6:00 a.m., these premiums must be applied. If the flexitime bandwidth overlaps with these periods, a zone with 50% premiums and another with 100% premiums automatically emerges.
To avoid this, it is recommended to define the flexitime bandwidth from 6:00 a.m. to 8:00 p.m. This timeframe fully covers the premium-free daytime working hours under the IT collective agreement. As a result, there is no overlap with the night-time 100% premium zone. Companies then only need to differentiate when the legally permitted maximum working time is exceeded—i.e., in cases of genuine overtime beyond the allowable limits.
This clear and structured definition of the flexitime bandwidth offers several advantages:
- Significant reduction in administrative effort
- Fewer errors in calculating overtime premiums
- Greater transparency for all parties
- Improved planning for those responsible for scheduling
- Fewer disputes regarding entitlement to premiums
A well-chosen flexitime bandwidth therefore not only prevents unnecessary additional costs but also ensures smooth implementation of the flexitime model.
Implementing a Traffic Light Account Model to Manage Time Balances
A proven tool for managing working time accounts is the so-called “traffic light account model.” In this model, the working time account is divided into three color-coded zones—green, yellow, and red—each linked to clear rules.
Why a Traffic Light Model Makes Sense
- It gives both management and employees an immediate overview of current time credits or deficits.
- It functions as an early warning system: once the yellow zone is reached, corrective action can be taken before balances become excessive or unmanageable.
- It supports compliance with legal limits (e.g., a maximum of 12 hours per day or 60 hours per week in Austria) by making exceedances visible at an early stage.
Best Practices for Implementation
- Define Zone Limits
Clearly specify how many plus or minus hours fall into the green, yellow, and red zones. Example: ±20 hours = green, ±40 hours = yellow, beyond that = red. - Link Zones to Concrete Measures
- Green zone: employees manage flexitime independently
- Yellow zone: manager or team lead becomes involved and agrees on compensation
- Red zone: action required—reduce time credits, schedule time off, or limit overtime
- Integrate into the Flexitime Agreement and Time Tracking System
Make the traffic light model part of the flexitime agreement, connect it with your time tracking software, define the flexitime period, and specify how time credits are settled or compensated. - Regular Evaluation and Communication
Provide employees with regular updates on their account status—monthly summaries or automated alerts when the yellow zone is reached are considered best practice. - Legal Compliance
Even with a traffic light model, statutory limits must not be exceeded (e.g., max. 12 hours per day or 60 hours per week in Austria). - Use Flexibility and Buffers Wisely
Some companies deliberately include buffers (e.g., +60 hours in the green zone) to accommodate seasonal fluctuations. The key is ensuring the buffer is not so large that control and oversight are lost.
Example of a Traffic Light Account Definition
| Zone | Time Balance | Measures |
|---|---|---|
| Green | –20 to +40 hours | Employee self-management |
| Yellow | +40 to +60 hours | Manager notification / plan compensation |
| Red | > +60 hours or < –20 hours | Mandatory action: reduce balance, limit working time |
Tip 4: Extend the Daily Maximum Working Time to 10 Hours to Avoid Overtime
Many companies do not fully leverage their flexitime models because they set the daily maximum working time too low. If the regular daily working time is defined too narrowly, unnecessary overtime quickly arises—often with premiums and additional administrative effort. It is therefore advisable to extend the daily maximum working time to 10 hours, provided this is operationally and legally permissible.
Tip 5: Communication and Coordination with Employees
Even the best agreement will fail if it is poorly communicated. Therefore, you should:
- discuss the agreement jointly
- explain concrete examples
- clarify typical questions
- actively collect feedback
Many companies use short workshops or internal Q&A sessions to ensure that everyone understands the applicable rules.
Example Structure of a Well-Designed Flexitime Agreement
| Section | Content |
|---|---|
| 1. Scope | Who does the agreement apply to? |
| 2. Working Time Model | Bandwidth, core time, flexitime period |
| 3. Overtime | Allocation, authorization, compensation |
| 4. Breaks | Legal requirements |
| 5. Time Tracking | Systems and responsibilities |
| 6. Absences | Medical appointments, business trips, remote work |
| 7. Final Provisions | Validity, amendments |
FAQ – Frequently Asked Questions About Flexitime Agreements
What is a flexitime agreement?
A flexitime agreement defines the flexitime bandwidth, core working time, flexitime period, and the rules for overtime and time tracking. It enables flexible working hours while providing guidance and legal certainty.
Is a flexitime agreement mandatory in Austria?
Yes. In Austria, a written flexitime agreement is legally required once a company introduces a flexitime model. The Working Time Act mandates a clearly defined flexitime period and complete time tracking.
What are the benefits of an annual flexitime period?
An annual flexitime period offers maximum flexibility. Employees can build up and reduce time credits over a longer timeframe. It is also recommended not to end the period on 31 December, but after a quieter month such as May or September, allowing time credits to be used more easily and with less pressure.
Why should the daily maximum working time be extended to 10 hours?
Extending the daily maximum to 10 hours allows for more flexible daily schedules and prevents unnecessary overtime subject to premiums. Both Austria and Germany permit a maximum working time of 10 hours per day, provided the required compensation periods are observed. This keeps working time models flexible while remaining legally compliant.
