Quick Comparison
Criterion | Annual Smoothing | Modulation |
Legal Framework | Not regulated by the Labor Code (generally tolerated practice) | Requires a collective agreement |
Tracking | Weekly (week-by-week deviations) | On the whole reference period |
Adjustment | End of period: overall balance reflected in payroll | End of period: excess hours are paid; no regularization if under target |
What Is Annual Smoothing?
Annual smoothing adjusts work time according to activity, without requiring a collective agreement.
Each week, compare actual hours worked to contractual hours (e.g. 35 h).
Positive or negative deviations accumulate throughout the year.
At the end of the period (12 months or end of contract), the overall balance is shown in the accounting export.
🔎 Example for a 35-h/week contract:
How Modulation Works
Modulation is a method governed by a collective agreement. It sets:
A reference period (from 4 weeks up to 3 years)
A total number of hours to be achieved (e.g. 1607 h/year for full time)
Each week, an employee may work more or less than 35 h. The goal is simply to reach the total fixed hours by the end of the period.
At the end of the period:
If the employee exceeds the target → hours beyond are paid as overtime (or normal hours)
If the employee does not reach the total target → no adjustment (no pay for deficit)
🔎 Example for a 35-h/week contract:
The annual target is 1607 h. If the employee works 1630 h, the 23 extra hours are paid as overtime with increases according to the collective agreement.