The labour courts regularly consider the enforceability of clauses in employment contracts that declare overtime hours to be deemed compensated by payment of regular remuneration. The fact that lump sum compensation clauses still appear in mostly inadmissible forms potentially results from employers' aim to save the cost of the remuneration and considerable organisational effort. However, lump sum compensation clauses are suitable only to a limited extent and involve a high risk of unenforceability.
An accurate method for calculating leave pay must take into consideration an employee's holiday, sickness, bank holiday and other paid absences; however, this can be burdensome for a company's HR department if its employees earn fluctuating rates of commission. While a certain amount of bureaucratic effort is inevitable, a well-thought-out system and properly trained HR officials will help to minimise complications and avoid negative consequences.
There is a considerable need for external personnel – partly due to the current labour market's limited supply of highly qualified specialists willing to work as employees in some areas and partly due to the increasing demand for flexibility. However, while engaging external personnel allows companies to concentrate on their core competencies and provides easier access to external know-how, it also carries considerable legal and economic risks if handled improperly.