In the workplace, how overtime work is recorded and compensated is just as important as the work itself. Simply stating "I worked overtime" or "I paid all wages" is insufficient when a dispute arises. Documents proving that the work was done and paid for are required. Especially in SMEs, working hours, manager approvals, timekeeping, and payroll records can often be managed independently. While this disconnect may not cause problems in daily operations, it can result in significant costs for the business years later in a lawsuit for unpaid wages.

Therefore, viewing working time records solely as personnel tracking is insufficient. These records are also crucial for protecting employee rights and managing the legal risks of the business. The explanations in this article are based on the general working regulations for employees covered by the Labor Law No. 4857. Special working regimes and sectoral exceptions should be evaluated separately.

The difference between overtime and working excessive hours.

Although overtime and extended working hours are used interchangeably in everyday language, they are different concepts under the law. This distinction directly affects the calculation of compensation.

Overtime is, as a rule, work exceeding 45 hours per week. Each hour of overtime should be paid at a rate 50% higher than the normal hourly wage.

Overtime work refers to work performed beyond the agreed-upon weekly working hours of 45 hours, up to a maximum of 45 hours, in cases where the contract stipulates a lower weekly working time. For each hour of this overtime, the employee's normal hourly wage is increased by 25% . Higher rates may be stipulated in the employment contract or collective bargaining agreement in favor of the employee.

For example, if an employee whose weekly working hours are set at 40 hours works 48 hours in a week, according to the general rule:

• Five hours out of a 40-45 hour workday is considered overtime work.

• Three hours beyond 45 hours is considered overtime.

However, the total weekly duration alone is not sufficient. The legal application of equalization, daily working limits, and night work must also be examined. In the Supreme Court's practice, work exceeding 11 hours per day is taken into account in overtime calculations, even if the total weekly hours do not exceed 45. Shift work alone does not eliminate the right to overtime pay.

Rest breaks are generally not counted as working hours. However, simply indicating a break on the schedule is not enough; the employee must actually be able to use this break.

Who can prove that he worked overtime?

An employee claiming to have worked overtime is, as a rule, responsible for proving that work. The employer, on the other hand, must prove payment for overtime work if they claim to have done so.

The employee must substantiate their claim with regard to the relevant periods and work schedule. Workplace records, correspondence, assignments, and witness testimonies can be used for this purpose. The employer also has obligations regarding the documentation of working hours. According to Article 10 of the Regulation on Overtime and Extended Working Hours related to the Labor Law, the employer is required to prepare a document showing the working hours of the employees performing these tasks and keep a signed copy in their personnel file. The relevant payments must be clearly shown on the payroll and wage slip.

The employer's inability to provide records does not automatically guarantee the acceptance of an overtime claim. However, the lack of records may weaken the employer's defense and lead to the dispute being evaluated based on other evidence. The court does not look at only one document. The nature of the work, shift schedule, job description, workload, and whether the employee could determine their own working hours are also taken into consideration.

What evidence can be used?

Workplace records play an important role in proving overtime work. Depending on the nature of the dispute, the following evidence may be used:

• Electronic cards, turnstiles, and entry/exit records.

• Timekeeping and shift schedules,

• Assignment, dispatch and service forms,

• Vehicle tracking and location records,

• Corporate email and business correspondence,

• System transaction logs and remote work session information,

• Payrolls and pay slips,

• Bank payment records,

• Witness accounts.

However, not every record proves the same thing. A building entry and exit record may show the amount of time an employee was at work; it doesn't always prove they worked the entire time. Similarly, an email sent at night alone doesn't prove they worked all evening. Records should be considered in conjunction with work schedules and other evidence.

Evidence must also be obtained legally. In systems used for employee tracking, the purpose of processing personal data, its legal basis, employee notification, access rights, and retention periods must be considered.

How are witness statements evaluated?

In workplaces where written records are absent or incomplete, claims of overtime are often attempted to be proven through witness testimonies. However, the witness must genuinely know the work schedule. Testimonies from witnesses who worked at the same workplace, during the same period, or in a role where they could observe the work schedule are important. The witness's knowledge is primarily limited to the period they worked together. Testimonies from individuals who relayed what they heard from the employee or who were not present at the workplace during the relevant period are not given equal weight.

The testimony of a witness who has a similar case against the employer is not automatically deemed invalid. However, whether such a testimony is supported by other evidence is examined more carefully. In overtime pay calculations based on witness testimonies and assumptions over a long period, a reasonable reduction based on presumption may be applied in judicial practice. There is no fixed reduction rate applicable in all cases. If the employee's actual working days and hours can be determined by written documents or employer records, no reduction is made on this basis. However, a document describing only the general work schedule at the workplace may not definitively prove that the employee worked the same hours throughout the entire period.

The evidentiary value of payroll and bank payment slips.

In overtime disputes, whether the payroll is signed, whether it includes overtime accrual, and whether the employee has expressed any reservations all lead to different outcomes.

In payroll records showing overtime accrual, signed by the employee and without any reservations , the claim that more hours were worked than what appears on the payroll record must, as a rule, be proven with written evidence. During these periods, relying solely on witness testimony may not be sufficient.

If an employee has included a reservation on their payslip such as "my overtime pay is reserved," they can prove their claim of having worked more hours than the amount stated on the payslip with other evidence, including witness testimony.

The absence of overtime accrual on the payslip, or a blank or zero column in the relevant section , does not alone prove that the employee did not work overtime. The employee can provide other evidence to demonstrate their work during these periods.

Even in the case of unsigned payrolls , the fact that a bank payment has been made does not prevent the employee from claiming overtime work. Proof of overtime work can be demonstrated with any kind of evidence. The amounts determined to have been paid for overtime are deducted from the calculated receivables.

A lump sum payment to a bank account alone does not guarantee that all overtime payments have been made. It is necessary to determine which period and wage category the payment relates to. Another point of particular attention is the division of regular wages on the payroll. Showing a portion of an employee's agreed-upon regular wage as overtime pay without actual work performed may be considered payroll fraud in court. It is as important that the overtime line on the payroll is based on actual working hours and accurate wage calculations as it is that it exists.

Overtime pay should be included in the monthly salary.

If an employment contract states that overtime pay is included in the monthly salary, this provision does not grant unlimited work or payment exemption. In the practice of the Supreme Court, such provisions are considered valid only up to 270 hours per year , provided the conditions for validity are met. The extent to which the wage is sufficient to cover the agreed-upon overtime work and the applicability of the provision to the relevant period must also be examined.

The annual limit of 270 hours is also the general legal limit for overtime work. Exceeding this limit does not negate the payment for work actually performed. Therefore, stating in the contract that "overtime is included in the pay" does not mean that the employer is protected against all overtime claims.

Can free time be used in place of pay?

Employees may choose to use time off instead of receiving increased pay for overtime or extended working hours. This requires a written application to the employer.

• For every hour of overtime worked , 1 hour and 30 minutes of pay .

• For every hour of overtime worked , 1 hour and 15 minutes of pay.

Free time is involved.

Free time must be granted within six months, during working hours, and without any wage deduction. The employee's statutory or contractual holidays and leave days cannot be used for this purpose. It is not sufficient for the employer to unilaterally state, "I am not paying overtime wages; instead, I am granting leave." The employee's request, the duration they are entitled to, and the dates of use must be recorded.

Special assessment for managers and field staff.

When it comes to employees in managerial positions, decisions shouldn't be made solely based on title. Factors important include whether the employee can truly set their own work schedule, whether there is another manager giving them instructions, their salary level, and their actual authority.

Giving an employee the title of "manager" or "director" does not automatically eliminate the right to work overtime. Determining working hours can be more complex for sales representatives, service personnel, and field workers. Customer visits, assignments, the nature of travel, daily routes, vehicle tracking data, and reporting hours should all be considered together. It should not be assumed that every trip automatically counts as working time. Similarly, the payment of bonuses does not completely eliminate the right to overtime in all cases. What the bonus is for and how the wage system is structured should be evaluated separately.

How should employers set up their record-keeping system?

Recreating past working hours after a dispute arises is difficult. Therefore, the record-keeping system should be established during the period the work was performed and checked regularly.

1. Normal working hours, shifts, and breaks should be clearly defined.

2. Records of actual work should be kept regularly and be traceable on an employee-by-employee basis.

3. Overtime requests and manager approvals must be recorded.

4. Documents showing working hours must be kept in the personnel file in accordance with the regulations.

5. Timekeeping, payroll, and bank payments must be consistent with each other.

6. In remote and hybrid work arrangements, tasks, working hours, and off-hours requests should be made traceable.

7. Requests for free time and usage dates must be documented.

8. It should be possible to track who made the changes to the records and when.

9. Backup and data transfer plans should be implemented to preserve historical records during system changes.

10. Regular checks should be performed between human resources, payroll, and accounting processes.

Overtime authorization is different from a record showing working hours. Obtaining authorization does not prove that the work was actually performed or that payment was made.

According to the regulation, consent can be obtained when the employment contract is made or when the need arises. There is no general obligation to renew it every year. The employee can withdraw their consent with 30 days' written notice. Similarly, the existence of a procedure in the workplace stating that "overtime work cannot be done without prior manager approval" does not automatically render work done with the employer's knowledge or instruction unpaid.

Why is timely action important in a dispute?

Claims for overtime and extended working hours are, as a rule, subject to a five-year statute of limitations . The period begins from the date each wage claim becomes due. The continuation of the employment relationship does not automatically prevent the commencement of the statute of limitations. Therefore, it should not be assumed that the period begins only on the date of termination of employment.

For these receivables, mediation must be sought before filing a lawsuit. The statute of limitations is suspended during the period from the application to the mediation office until the final report is drawn up. Other reasons that suspend or interrupt the statute of limitations should also be considered when calculating the period. Therefore, the preservation of records is also important for employers. However, when determining the retention period, it is not sufficient to consider only the five-year statute of limitations. Ongoing disputes, other legal obligations, and personal data protection regulations must also be taken into account.

Conclusion

In overtime disputes, the fundamental distinction is clear: the employee must prove the overtime worked, and the employer must prove the payment claimed. The evidence that can be used and its weight varies depending on the nature of the payroll, the content of the records, and the specific work schedule. For businesses, the main need is a record system that reflects the actual work schedule and corroborates each other. The work shown on the time sheet must be accurately calculated on the payroll, and the amount on the payroll must match the payment records.

Accounting records do not replace records of working hours. Similarly, overtime authorization is not a payment document. Each of these documents represents a different stage; in a healthy process, they must complement each other. Regular record-keeping ensures that the employee receives compensation for their work and reduces the risk of the business facing additional costs years later due to unexplained working hours and payments.