0 comment

Why “all incl” work contracts are a bad idea

It’s a constantly spreading habit of employers (at least in Germany) to offer work contracts which contain a passage saying that all overtime hours are included in the base salary. While this sounds like a good idea for employers, it eventually is not.

First there is some moral type of issue. The amount of work needed to fulfill a customer project is a entrepreneurial risk. This is why some people are employed and some are freelancing. The employed ones are offered a (somehow) fixed salary for his work time. The entrepreneur gets the surplus for taking the risk. Not paying overtime hours means to shift this entrepreneurial risk to the employee. Thats bad.

Then there is motivational issue. If I’m not paid for my time I have no interest whatsoever in a personal commitment exceeding my stipulated work time. My first project agency partner once said: “Think well, when investing your time without gain. Your work time is your only commodity. Don’t waste it without revenue.”

So think well when offering a contract to a prospective coworker: if you are interested in hiring a guy who cares for the project, then pay her/him by the hour. Don’t expect to be presented with his/her time.

(Image by, License)

Leave a Reply

Required fields are marked *.