Lump sum compensation for overtime work

The fact that lump sum compensation clauses still appear in mostly inadmissible forms in more recent employment contracts potentially results from employers' aim to save not only the cost of the remuneration, but also considerable organisational effort. This is especially cumbersome in a world in which employers and employees alike want working models to be agile and allow for considerable flexibility.

There are two different ways to implement lump sum compensation. In the following article, Dr. Hagen Köckeritz and Janis Czemmel discuss which aspects have to be considered. Read the full article on Lexology (external link)