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Given the strictness and complexity of German labor laws, most businesses choose to outsource their payroll processes to expert professionals operating in the field. These professionals, in addition to ensuring complete compliance with the various laws also ensure that their clients do not end up paying more than the average cost of employee in Germany for different employment levels. In the latter case, it is important for payroll professionals to factor in the following key considerations.
*** It is important for payroll service providers to have a clear understanding of the difference between overtime and additional work. For this, they might also need to refer to the work agreements and employment contracts drawn between the employers and the employees.
*** The payroll Germany professionals also need to analyze the contractual clauses related to overtime. This is essential to ensure that the companies do not end up paying for overtime that is already covered under the salary paid to the employees. In general, employers can include a maximum of up to 3 hours of overtime per week, in the salary of the employees.
*** The burden of proof for any overtime is the responsibility of the employees. In this context, the HR service providers need to have a clear understanding of which proofs may be considered valid and which need to be validated by the supervisors of the employees.
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