The consequences of non-compliance

Violations of the provisions of the Minimum Wage Act (Mindestlohngesetz - MiLoG), the Posted Workers Act (Arbeitnehmer-Entsendegesetz - AEntG), the Act on the Provision of Temporary Workers (Arbeitnehmerüberlassungsgesetz - AÜG) and infringements against the Act on Securing Labour Rights in the Meat Industry (Gesetz zur Sicherung von Arbeitnehmerrechten in der Fleischwirtschaft - GSA Fleisch) are punishable as administrative offences entailing a fine pursuant to Art. 21 MiLoG, Art. 23 AEntG, Art. 16 AÜG and Art. 7 GSA Fleisch.

Whoever, whether intentionally or negligently, as an

employer domiciled in Germany or abroad,

• [1] fails to ensure, or does not ensure in good time, that the conditions of employment as stipulated in Article 20 MiLoG or Article 5 AEntG are complied with,
• [2] fails to make, or does not make in good time, an obligatory contribution to a holiday fund,
• [3] fails to record, does not record in good time, or records incorrectly or incompletely, the beginning, end, and duration of a worker’s daily hours of work, taking into account where appropriate the provisions of the Minimum Wage Recording Ordinance (Mindestlohnaufzeichnungsverordnung - MiLoAufzV), or who does not retain such records for at least two years,
• [4] fails to retain in Germany - on the building site, if appropriate and required by the inspecting authority - revisable records drawn up in German, for a period not exceeding two years,
• [5] fails to permit access to a property or business premises,
• [6] fails to allow an inspection or to cooperate in it,

foreign-domiciled employer,

• [7] fails to notify, or incorrectly notifies, or submits an incomplete or late notification/notification of changes pursuant to Article 16(1) MiLoG or Article 18(1) AEntG, taking into account where appropriate the provisions of the Minimum Wage Reporting Ordinance (Mindestlohnmeldeverordnung - MiLoMelV),
• [8] fails to provide, does not provide in good time, or provides incorrectly, the assurance pursuant to Article 16(2) MiLoG and Article 18(2) AEntG, declaring that the statutory conditions of employment are being complied with,

supplier (hirer-out),

• [9] fails to ensure, or does not ensure in good time, that the conditions of employment as stipulated in Article 20 MiLoG or Article 5 AEntG are complied with,
• [10] does not pay the temporary worker the minimum hourly wage provided for in the regulations pursuant to Article 3a AÜG, for the hours of assignment and for times without assignment,
• [11] fails to make, or does not make in good time, an obligatory contribution to a holiday fund,
• [12] fails to retain in Germany - on the building site, if appropriate and required by the inspecting authority - revisable records drawn up in German, for a period not exceeding two years,
• [13] fails to permit access to a property or business premises,
• [14] fails to allow an inspection or to assist in it,

user (hirer),

• [15] fails to notify, or incorrectly notifies, or submits an incomplete or late notification/notification of changes pursuant to Article 16(3) MiLoG or Article 18(3) AEntG, and/or Article 17b AÜG,
• [16] fails to provide, does not provide in good time, or provides incorrectly, the assurance that the statutory conditions of employment are being complied with,
• [17] fails to record, does not record in good time, or records incorrectly or incompletely, the beginning, end, and duration of a worker’s daily hours of work, or who does not retain such records for at least two years,
• [18] fails to permit access to a property or business premises,
• [19] fails to allow an inspection or to assist in it,

employee or worker,

• [20] fails to allow an inspection or to assist in it,

contractor,

• [21] allows the supply or provision of a significant volume of labour or services by engaging another employer of whom it is known, or should have come to the knowledge of the employer had he/she reasonably inquired, that

  • such employer himself when providing the contracted work or services,
  • the subcontractor engaged by that employer,
  • a subcontractor engaged by the subcontractor

  fails to pay, or does not pay in time, the minimum wage pursuant to the MiLoG, fails to pay, or does not pay in time, the minimum wage pursuant to the AEntG including overtime supplements, paid leave, holiday pay, or an additional holiday bonus, or fails to make and/or to timely make contributions to the holiday fund,

is committing an administrative offence.

Administrative offences as described in [1], [2], [9], [10], [11] and [20] above are punishable by fines amounting to a maximum of 500,000 euros. The administrative offences described in the remaining paragraphs are punishable by fines amounting to a maximum of 30,000 euros.
If the user submitted a notification before 1 July 2023 in accordance with the then applicable law, the supplier does not have to submit the notification again. Irrespective of this, the supplier must report changes without delay.