All-in-Vertrag (all-in contract)

Scope of application

All-in arrangements are typically used in the following cases:

• for senior executives, managing directors and managers with flexible working time arrangements, depending on their status under employment law
• for positions in which additional hours and overtime are to be compensated on a lump-sum basis
• for senior executives to whom, subject to the statutory requirements, an exemption from the Working Time Act applies
• to simplify payroll where the workload fluctuates

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Legal basis

The following sources are particularly relevant to all-in arrangements:

• § 2 para 2 no 9 AVRAG: statement of the basic salary or basic wage and the other remuneration components in the written statement of particulars
• § 2g AVRAG: legal consequences where the basic salary or basic wage is not stated as an amount in a lump-sum remuneration arrangement
• Applicable collective agreement: mandatory minimum remuneration and any provisions on compensation for additional hours and overtime
• Supreme Court (OGH) case law on the interpretation and coverage check of lump-sum remuneration arrangements

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Deadlines

The following periods must be observed in particular for all-in arrangements:

• Changes to the agreed total remuneration or to the services it covers generally require an agreement. If none is reached, an Änderungskündigung may be considered, in compliance with the rules on termination.
• Claims for back payment generally become time-barred three years after they fall due. Shorter valid forfeiture periods may also have to be observed.

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Rights and obligations

Rights:

Employees with an all-in arrangement have the following rights in particular:

• entitlement to the agreed total remuneration
• entitlement to additional compensation where the coverage check shows that the services covered by the total remuneration have not been sufficiently compensated
• entitlement to a statement of the basic salary or basic wage and the other remuneration components in the employment contract or written statement of particulars

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Obligations:

Employers have the following obligations in particular for all-in arrangements:

• stating the basic salary or basic wage as an amount and clearly recording the total remuneration and the services it covers
• complying with the collectively agreed minimum entitlements and checking whether the total remuneration, or the amount paid above the minimum, actually covers the services included
• keeping working time records, where the record-keeping obligations under working time law apply

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Common mistakes

The following mistakes frequently occur with all-in arrangements:

1. The arrangement does not show what salary is paid for normal working hours and what portion is paid to cover additional hours and overtime.
2. The stated basic salary is below the collectively agreed minimum remuneration, or the total remuneration does not sufficiently cover the entitlements included.
3. No regular coverage check is carried out, so that possible claims for back payment go unnoticed.
4. Working time records are not kept despite an existing record-keeping obligation; as a result, the basis for the coverage check is also missing.

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Recommended steps

The following measures are recommended for a legally sound all-in arrangement:

1. Clearly record the total remuneration, the basic salary or basic wage and the services covered in the employment contract or written statement of particulars.
2. Carefully check the applicable collectively agreed minimum remuneration before the contract is concluded.
3. Check regularly whether the total remuneration covers the entitlements that have actually arisen and are covered by the arrangement.
4. Keep working time records for employees with an all-in arrangement as well, where the statutory record-keeping obligations apply.