Pay & deductions
What counts as billable time?
Billable time is whatever the engagement contract says it is. In practice that means client-facing and delivery work explicitly within scope, usually including meetings the contract covers, and usually excluding internal admin, business development and rework caused by the vendor's own error.
There is no legal definition of billable time — it is entirely contractual, which is exactly why it causes so many disputes. The statement of work is the only authority, and the clearer it is about inclusions, the fewer arguments arrive at invoice time.
The uncontroversial core is delivery work on the client's deliverables: writing the code, designing the screens, running the analysis. Client meetings, workshops and reviews are billable in most time-and-materials engagements and the source of most disagreements when the contract is silent. Travel is usually billable at a reduced rate or not at all, by explicit clause. Internal team meetings about the client are typically absorbed as delivery cost.
Three grey areas deserve naming in the contract: rework (client-requested changes are billable, defects caused by the vendor generally are not), onboarding and ramp-up (billable in staff-augmentation, usually absorbed in fixed-fee), and support after go-live (billable unless a warranty period says otherwise).
The evidentiary point matters as much as the definition. A billable hour that a client will pay for is one that names what was done and can be tied to a deliverable. 'Development — 8h' invites a challenge; a session attributed to a specific feature, approved by a lead in the same week, does not.
Where this comes from
- §The engagement contract or statement of work — the governing authority in every case
- §Industry practice in professional services for grey areas such as travel, rework and ramp-up
General information, current to August 2026, not legal advice. Labour rules vary by state and the Labour Codes continue to roll out — confirm your position with your compliance advisor before acting.
How Workclave handles this
Workclave attaches every session to a project and client as it starts, so the billable/non-billable split is a property of the record rather than a month-end judgement call — and each hour carries the context that defends it.
billable hours explained →Il tuo team sta lavorando. Inizia a capire come.
Unisciti ai team che registrano sessioni, non solo tempo. Gratis fino a 3 utenti: nessuna carta, nessun minimo, nessun vincolo.