USA
Mexico
Colombia
Costa Rica
Chile
Peru
Brazil
Spain
France
UK
Italy
Germany
Netherlands
PortugalWorkforce Management
Steps to implement a flexible hours system in your company
There are several steps to implement a time bank system in a company. Do you want to do it with HR software? We'll tell you how on the blog.
Isabel García
HR Consultant
3 of February, 2025
There are companies that can operate on a fixed schedule. However, other companies have an irregular workload throughout the year. The overtime bank is an excellent resource for them. Therefore, we’re going to look at the steps to implement an hours bank.
What is the hour bank?
For those unfamiliar with this tool, let’s explain it. It’s a formula to provide flexibility in the distribution of working hours.
As we mentioned, it’s a very interesting resource for companies with high seasonality. Also for those with considerable production fluctuations and difficulties in time control.
Imagine you have a worker contracted for 30 hours a week. However, there isn’t enough workload for him during a certain period.
What we can do is temporarily reduce his working hours. The unworked hours go to the hours bank, and he will recover them when the workload increases.
Thanks to the hours bank, companies can adapt to organizational and productive mismatches. The opposite case can also occur: he works more hours, and when the workload drops, he will work less.
The salary doesn’t change: there are no extra hours nor is less paid for unworked hours.
It’s worth noting that the hours bank has been applicable in Spain since 2012. Although the labor reform of that year enabled this option, it’s not very developed.
Partly, due to lack of knowledge. Partly, because not everyone knows the steps to implement an hours bank.
Steps to implement an hours bank
We have two options to legally implement this option. The first one is for it to be regulated by our collective agreement. The second one is for it to be the result of an agreement between the company and its employees.
Without an agreement, the company can unilaterally apply it with a maximum of 10% of the hours worked in a year.
It’s important to note that the irregular distribution of the day must be conditioned by the usefulness and functionality of the company. It cannot respond to an arbitrary decision. Keep in mind that it may be subject to judicial control.
This will be the first of the steps to implement an hours bank. The next step will be to use the time control system to set up the hours bank. Keep in mind that this is a mandatory measure as indicated by the Law of working time records.
The time record allows us to account for the total hours worked by an employee. The next step will be to compare it with the hours indicated in his contract. This way, we obtain the positive or negative balance of the hours bank.
Both the worker and Human Resources should know the balance of the hours bank. This way, we avoid problems and ensure reaching December 31 with a balance of 0 hours. As you can see, the steps to implement an hours bank are very simple.
Time control software for hours bank
We have mentioned that one of the main steps to implement an hours bank is to manage time control. And the best tool for it is a time control software. With it, we can also manage the hours bank in the most efficient manner.
As the saying goes, we kill two birds with one stone with tools like Sesame HR. It’s used to automate the hour bank, avoiding misunderstandings or information errors. It also prevents human errors, as manual records can always produce errors.
Its use is very simple. The worker clocks in and out. The worked hours are accumulated, and at the end of the period, we can calculate the worked hours.
Going back to the example of 30 hours, have they been fulfilled? How many are left? Have they been exceeded?
A tool like Sesame HR also facilitates the monitoring of the hours bank.
The Human Resources department only needs to access the worker’s file to check the hours balance. And the employee himself can do it by opening the application and verifying the total hours worked.
Precisely the work of Human Resources is fundamental for efficient management of the hours bank.
HR needs to know the company’s labor needs at all times, so they distribute the workforce accordingly. They will fit it to each employee’s contract.
How to implement the hour bank: key issues
Now that you know the steps to implement an hours bank, all you have to do is put them into practice. But first, we offer a series of recommendations for implementing the hours bank. These key aspects must be clear to avoid any mistakes:
- Only 10% of work hours can be distributed. There may be exceptions if indicated by the collective agreement or company pact.
- The distribution of hours can’t exceed 9 hours of work per day.
- Rest periods will be respected daily, weekly, between shifts, etc. Thus, the separation between working days and nonworking days won’t be affected.
- We cannot apply the hour bank to employees with reduced working hours for caring for a family member or a child under 12 years old
In addition, we should notify the worker at least 5 days in advance of any change. This time frame can be expanded by the collective agreement or the agreement between the company and its staff. We cannot reduce it under 5 days.
Want to learn more about steps to implement an hours bank or about this tool? On the Sesame HR blog, your HR software reference, you’ll find the keys for it. Don’t miss out on the related contents!
Need help?
I'm Isabel, HR consultant at Sesame HR. Book a meeting with my team to help you.