Compensatory Rest: rights and calculation
14 October 2025 · 4 min reading time
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See job offersWhen an employee exceeds the legal 35-hour workweek, their overtime hours must be compensated. This compensation can take two forms: increased pay or compensatory rest. The compensatory rest system converts overtime hours into time off. Established by the French Labour Code, it aims to protect employees’ health while allowing employers greater flexibility in managing working hours.
What is compensatory rest?
Compensatory rest is a right established by the French Labour Code. It allows employees who work overtime to recover their working time in the form of rest. The idea is simple: instead of only receiving additional pay, the employee gains equivalent time off to balance the extra hours worked.
This mechanism serves two main purposes: protecting the employee’s health by preventing excessive working hours and providing companies with flexibility in scheduling.
There are two types of compensatory rest: replacement rest, which substitutes for overtime pay, and mandatory rest, which is granted in addition to pay once a certain threshold of overtime hours is reached.
In all cases, compensatory rest is not an optional benefit but a legal right for employees, applicable across most sectors and regulated by collective bargaining agreements.
How is compensatory rest calculated?
The calculation is straightforward: overtime hours are converted into rest time using the same rate as the overtime pay increase. In other words, one hour paid at a +25% rate equals 1 hour and 15 minutes of rest, and one hour at +50% equals 1 hour and 30 minutes. Certain collective agreements may provide higher rates; in such cases, the company or industry agreement takes precedence.
Once overtime hours are approved on the payslip, the employee’s rest account is credited. The rest can then be taken according to internal policies — usually in half-day or full-day increments — with possible rounding rules defined by the agreement.
Example of compensatory rest calculation
During a 44-hour week, the employee works 9 overtime hours. The first 8 hours (from the 36th to the 43rd) grant 10 hours of rest (8 × 1.25). The last hour, at +50%, adds 1 hour and 30 minutes (1 × 1.5). In total, the employee earns 11 hours and 30 minutes of compensatory rest, which can be taken as three half-days with one hour remaining for later.
How long does an employee have to take compensatory rest?
Once compensatory rest has been earned, the employee must be allowed to take it within a reasonable timeframe. Generally, it must be taken within two months of entitlement, unless a company or collective agreement specifies otherwise.
The employee requests the time off, and the employer sets the date while considering operational needs. The goal is not to postpone rest indefinitely, but to organize it without disrupting business activities.
If, for any reason, the rest cannot be taken on time, it remains due — the hours do not disappear. The employer is legally required to allow the employee to recover their rights, even at a later date. Compensatory rest can only be lost in the event of contract termination before it is taken.
Compensatory rest vs. overtime pay: what’s the difference?
When an employee works beyond their regular schedule, overtime must be compensated, either through payment or compensatory rest.
In the first case, overtime hours are paid with a premium: +25% for the first eight hours, then +50% thereafter. This is the most common option, as it provides immediate financial compensation on the payslip.
Compensatory rest, on the other hand, allows employees to recover time instead of money. In other words, rather than earning more, they work less later. This system is often preferred in companies with fluctuating workloads throughout the year or when employers seek to limit overtime costs.
The choice between pay and rest depends on collective agreements or company practices. In all cases, employees must be informed and give their consent if rest replaces overtime pay.
In short, overtime pay offers immediate financial compensation, while compensatory rest prioritizes recovery time and employee well-being. Neither option is inherently better, it depends on individual and business needs.
Exceptions to compensatory rest
Compensatory rest does not apply to all workers, even though it is the general rule. Certain statuses or sectors are governed by specific regulations.
Executive managers, for example, are excluded. Their working time is not measured in hours but in objectives, and their pay already reflects this flexibility. The same applies to employees under annual day-based contracts, whose work is calculated in days per year — making overtime and compensatory rest inapplicable.
Some professions also follow special arrangements. In sectors such as road transport, healthcare, hospitality, or events, schedules are often irregular, with specific cycles defined by collective agreements. These may include other forms of compensation or rest.
Finally, company size matters. In businesses with fewer than 20 employees, the mandatory rest entitlement only applies once a certain number of overtime hours has been exceeded.
In summary, compensatory rest depends on the employee’s status, industry, and collective agreement. To be sure of your rights, consult your employment contract or ask your HR department for guidance.
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