Introduction
Many employment contracts state that overtime is included in salary. Yet there are limits to this. If employees structurally work many more hours than agreed upon, separate compensation may still be required. This blog explains how judges rule on this and what this means for practice.
The situation
A video editor worked full time, making as much as 154 hours in four months on top of his normal 40-hour work week. He earned €2,400 gross per month, including vacation allowance. His employment contract stated that overtime was included in his salary. When he did not receive separate compensation for the extra hours worked, he went to court.
Judge's verdict
The Haarlem subdistrict court ruled that the employee was entitled to compensation for overtime worked. Although the employment contract stated that overtime was included in the salary, the judge ignored this. There was excessive overtime, meaning that the amount of overtime could no longer reasonably be required of the employee without additional pay.
The judge emphasized that an agreement on overtime included in salary may not be stretched indefinitely. When employees structurally and substantially work more than contractually agreed upon, they must be rewarded extra for this. An employer may not simply assume that an employee works many extra hours without compensation.
Importance for practice
Employers should keep in mind that standard clauses about overtime in the salary do not always hold up if employees structurally work many more hours than usual. It is important for employees to keep good records of extra hours worked and to discuss this in good time if the burden becomes too high.
Conclusion
An agreement that overtime is included in salary is not indefinitely tenable. If employees work substantially more hours than is reasonable, they become entitled to separate compensation. Both employers and employees would be wise to properly record and discuss workload and hours worked in a timely manner.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you if you have questions about overtime. Please feel free to get in touch .
April 2025
