Overtime and All-In Contracts

In the professional sphere, numerous myths often lead to misunderstandings. A prevalent misconception revolves around All-In contracts, with the assumption that all overtime is automatically covered under such an agreement. However, delving into the details reveals a nuanced reality.

Myth: All-In contracts automatically cover all overtime.

Fact: This assumption does not align with reality.

While an All-In contract establishes a flat salary intended to encompass various work-related aspects, including overtime, a crucial process occurs at the end of the calculation period, typically at the close of each month.

During this evaluation, the employer is obligated to conduct a coverage check. This examination assesses whether the agreed-upon flat salary adequately compensates for the actual hours worked. If it turns out that the sum paid does not sufficiently remunerate the accumulated hours, the employer is required to make up the difference in payment.

It is incorrect to assume that an All-In contract automatically settles all overtime hours. Legal regulations dictate that the compensation, at the conclusion of the billing period, must align with the actual hours worked.

Therefore, employees should be aware that the settlement of overtime under an All-In contract is not automatic and necessitates a meticulous review by the employer, potentially resulting in additional payment. Understanding the legal framework can help mitigate misunderstandings and ensure fair compensation.