Annual smoothing allows you to adapt your team’s working hours to your business needs, whether during periods of high or low activity. Each week, the difference in hours worked, whether positive or negative, is calculated against the employee's contractual working hours. These variations accumulate over the weeks.
At the end of the year (or at the end of the contract if the employee leaves earlier), the total balance is factored into the variable payroll components for accounting purposes.
Interested only in monthly smoothing? Find all the details here 👈
Although this practice is not explicitly regulated by labor law, it is widely used and generally accepted.
Example for a 35-hour/week contract:
Week | Hours worked | Weekly difference | Total balance |
S1 | 37h | +2h | +2h |
S2 | 30h | -5h | -3h |
S3 | 42h | +7h | +4h |