Same as almost every year, January brought numerous changes in
employment law. Some of the new rules will apply to all-in
contracts, starting on 1 January 2016.
Lump-sum compensation for overtime has become a prevailing
practice not just for executive-level employees, but is deemed to
be legally acceptable also for non-executive employees. As a basic
rule for all types of lump-sum compensation for additional working
hours, employees must not be worse off than when paid for by actual
overtime put in. Employers therefore need to observe some rules
when negotiating lump-sum contracts.
A key point is that a lump-sum payment mode must not be
automatically deduced when a salary exceeds the collective
bargaining agreement, even when the excess payment is substantial.
It requires an agreement between employer and employee, which
preferably should be in writing, given the current
amendments to employment law.
