I’m afraid this is not possible out of the box.
This is a link to a thread from last year with a very similar question.
In fact I would not recommend to restrict logging work in this way because this tends to foster inappropriate behavior.
I like your second approach with getting informed about issues being overbooked. I’m not aware of how you could be notified immediately in such a case. In my environment I prepared issue filters for that and present the results on dashboards and allows users to subscribe the filter in case they like to get informed via mail instead of having to check the dashboard.
I hope this is of some help to you.
Sure, if you have Jira Automation at hands their are a lot of opportunities. I use it to calculate ratios of booked time to original estimates. With this approach I’m able to point out the real mismatches based on thresholds, e. g. 10% might be okay, but 20% is a warning and more needs management attention.
If you are interested in this approach, I‘m happy to share it with you.
Have a nice weekend.
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