20/07/2020
The Mystery of RTT: Unpacking Working Time Reductions
It's that time of year again. You're scouring the web for the best ways to strategically place your RTT days, aiming to maximise those long weekends and public holiday connections. Or perhaps you're more of a planner, carefully saving your 'days off' to secure a not-insignificant financial bonus at the year's end. RTT, a common perk for many employees, has become deeply ingrained in workplace vernacular. But what exactly does "RTT" stand for? Where did it originate, and how can you benefit from it?
Welcome to the Jungle is here to shed some light and tell you everything you need to know about RTT.
What Exactly is an RTT Day?
A Rest Day Earned
The acronym RTT stands for Réduction du Temps de Travail, which translates to "Reduction of Working Time." This concept emerged with the introduction of the 35-hour work week, mandated by the Aubry Law of 13 June 1998. Since 1 January 2000, companies with more than 20 employees have been legally required to limit the full-time work week to 35 hours, a reduction from the previous 39 hours. This regulation has been applicable to all businesses since 1 January 2002.
Consequently, businesses had to make a choice:
- Reduce their employees' working time to 35 hours per week.
- Maintain a 39-hour work week and pay the difference as overtime.
- Keep the 39-hour week and grant the aforementioned RTT days.
An RTT day, therefore, is a half-day or a full day of rest that an employee accrues to compensate for working a 39-hour week. Not all employees are entitled to RTT; it's a company's chosen method to compensate for up to four additional hours worked beyond the standard 35-hour week.
It's crucial to distinguish RTT from overtime. While the regulations surrounding overtime have gradually eased, the Code du Travail (French Labour Code) specifies the legal weekly working time at 35 hours (Article L.3121-27) and the maximum working hours, including overtime, at 48 hours (Article L.3121-20). Hours worked beyond the 39-hour weekly limit are automatically considered and remunerated as overtime. For hours worked between 35 and 39, employees will receive either RTT days or overtime pay, depending on the company's policy.
RTT days are also distinct from:
- Paid holidays (congés payés)
- Sick leave (arrêts-maladie)
- Leave related to childbirth, or for the illness, disability, or dependency of a family member.
- Time taken for other professional activities or local political mandates.
A French Exception
RTT is fundamentally a French anomaly, rooted in a philosophy of social progress. The objective behind the 2000 reform was to stimulate job creation and promote work-sharing while offering greater flexibility in working hours. Its implementation often presented organisational challenges for employers, HR departments, and management. While some employees may hesitate to take their entitled RTT days, it's undeniable that working hours have seen a near-continuous decrease since the law's adoption. Employees who have held the same role for at least a year report taking an average of 33 days of paid leave and RTT annually.
For French employees working abroad, it's common for RTT agreements to extend the 35-hour week to all employees for equity reasons. Otherwise, an employee abroad might be:
- "Detached": Considered a French employee residing in France, potentially eligible for RTT.
- "Expatriated": If their contract is governed by French law, they may be eligible for RTT. However, if the local territorial law applies, they will not be.
How are RTT Days Determined?
Governed by Collective Agreements
The rules governing RTT are established by collective agreements, either at the company or industry level, and are not dependent on the number of employees. Company-level agreements take precedence over industry-wide agreements (which are negotiated between employer representatives and trade unions within a specific sector). These collective agreements dictate the number of RTT days or the conditions under which they can be accumulated. For instance, part-time employees generally cannot benefit from RTT days unless a specific company agreement makes provision for it.
Two Possible Calculation Methods
There are two primary ways RTT days are calculated:
- Actual Calculation: Weekly working hours exceeding the 35-hour threshold are tallied to accumulate RTT day entitlements. For example, working 35.5 hours per week could entitle you to three RTT days per year.
- Fixed Calculation: The company agrees with employees on a set number of RTT days to be provided each year. For example, 10 RTT days are available annually.
Important Note: Regardless of the calculation method, RTT days taken by an employee cannot result in a salary reduction. If your remuneration includes variable components, these must be factored into the RTT calculation basis.
Reference Period: The Calendar Year
Unlike paid holidays, all your RTT days must be taken within the calendar year in which they were earned, i.e., between 1 January and 31 December. It's essential to plan and take your half-days and full days before the year-end, as they generally cannot be carried over or compensated financially.
How to Utilise Your RTT Days
1. Taking an RTT Day
The procedure for taking RTT days varies depending on the collective agreement or industry agreement in place. Employees might encounter different scenarios:
- RTT days are scheduled by the employer.
- Employees can freely choose when to take their RTT days (e.g., during school holidays or bridging public holidays).
- Managers may mandate specific RTT days.
- RTT days might be fixed, such as a regular half-day off at the end of the week.
Many companies provide an intranet system to manage RTT, detailing mandatory days and simplifying request and approval processes.
2. Donating an RTT Day
Since May 2014, it has been possible for employees to donate an RTT day to a colleague in need. This is strictly regulated and typically applies only when a colleague requires time off to care for a seriously ill child.
3. Getting Paid for an RTT Day
The possibility of being paid for unused RTT days is more complex and largely depends on the employee's status:
- Hourly Employees: For employees paid by the hour (like most workers), any RTT days not taken by 31 December are typically lost and cannot be paid out. The option to buy back RTT days was only available until 2009. However, if you believe you haven't been allocated sufficient RTT days, you can contest the situation with your employer.
- Fixed-Term Contract (Forfait Jours) Employees: Primarily executives, these employees can request to be paid for any RTT days not taken, effectively waiving their right to those rest days. This requires a written agreement with the employer and is usually renewable annually.
Looking Beyond RTT
Some companies are experimenting with the "work less to work better" philosophy. Popular in Nordic countries, particularly Sweden, this approach involves implementing a four-day work week. In these instances, there are no RTT days; employees maintain their salary but enjoy three days off each week.
Frequently Asked Questions
How do I calculate my RTT days?
The calculation of RTT days is typically governed by collective agreements or company policies. For those working more than 35 hours a week, RTT days are accrued based on the hours worked above the 35-hour threshold. Some companies use a fixed annual allocation of RTT days. If your working hours are exactly 35 per week, you will not accrue RTT days.
What if my RTT balance is negative?
A negative RTT balance means you have taken more RTT days than you were entitled to. Generally, no provision is needed unless the company has specific rules for recovering these days, perhaps by offsetting them against future accruals or extra hours worked.
Can I carry over unused RTT days?
As a general rule, RTT days must be taken within the calendar year they are earned and cannot be carried over or compensated financially. Exceptions might exist if the employer prevented you from taking them or failed to inform you of your entitlement.
Can RTT days be paid out?
Typically, no. Unused RTT days are lost at the end of the calendar year. However, employees on a fixed-term contract (forfait jours) may be able to arrange payment for unused RTT days with their employer, subject to a written agreement. In cases of contract termination, the collective agreement will dictate how any outstanding RTT days are handled, potentially leading to a compensatory payment.
Who is entitled to RTT?
Employees working more than 35 hours per week, particularly those on a 39-hour contract or executives on a fixed-term contract (forfait jours), are generally entitled to RTT. Part-time employees, whose hours do not exceed 35 per week, are not eligible for RTT.
Can I combine RTT with other leave?
Yes, it is often possible to combine RTT days with other types of leave, such as paid holidays or even sick leave, depending on company policy and the specific agreements in place.
Understanding your RTT entitlement is key to maximising your work-life balance. Always refer to your company's specific policies and collective agreements for the most accurate information.
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