Minimum conditions of employment

The Minimum Wage Act (Mindestlohngesetz - MiLoG), the Posted Workers Act (Arbeitnehmer-Entsendegesetz - AEntG) and the Act on the Provision of Temporary Workers (Arbeitnehmerüberlassungsgesetz - AÜG) lay down certain minimum requirements for the terms and conditions of employment, which every employer must comply with. You will find an overview of the basic conditions an employer must ensure as a minimum, here:

Conditions of employment as laid down in collective bargaining agreements and regulations
Overview of sector-specific minimum wages

General conditions of employment

Employers based in Germany or abroad who employ employees in Germany have to grant the working conditions that are generally defined in Germany by law or administrative provisions, regardless of the sector in which they work.

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Minimum pay pursuant to the Minimum Wage Act

As a matter of principle, every employee is entitled to be paid by their employer not less than the statutory minimum wage pursuant to the Minimum Wage Act, unless the Posted Workers Act and/or the Act on the Provision of Temporary Workers prevail over the former.

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Minimum pay pursuant to the AEntG, wage floor pursuant to the AÜG

In certain sectors you are entitled to payment of not less than a minimum wage. If you work in the temporary employment industry you are entitled to a minimum hourly pay as a wage floor for periods during which you are transferred out and for periods during which you are not transferred

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Further remuneration components beyond the minimum wage

Employees may be entitled to further remuneration components, such as a 13th month's income or supplements to the hourly wage, insofar as a there are special rules in a nationwide collective agreement, that has been declared to be generally binding.

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Overtime premiums

Your employees are entitled to overtime premiums in accordance with the applicable collective agreements.

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Length of holidays

You must grant regular holidays to all employees posted to Germany.

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Holiday pay

Your employees are entitled to holiday pay.

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Additional vacation allowance

In a number of industries you must pay your employees a vacation allowance in addition to their regular holiday pay.

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Holiday fund procedures

Both the mainstream construction industry and the scaffolding trade have introduced a holiday pay fund procedure under the terms of the Posting of Workers Act.

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Accommodation requirements

In various sectors, an employer has to comply with certain requirements for the accommodation that are provided for employees who are deployed away from their regular workplace.

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Travel expenses

In various sectors, an employer must provide allowances and reimbursement of expenses to cover travel, board and lodging costs.
You can find information on this under the topic General Conditions of employment.

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Special rules for certain activities

Certain employment activities that are only temporarily carried out in Germany are excluded from the application of the regulations of the Minimum Wage Act, the Posted Workers Act and the Provision of Temporary Workers Act.

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The Minimum Wage Act in cross-border passenger and goods transport

The Minimum Wage Act also applies in principle to international road transport journeys in Germany.

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Other obligations

During an inspection, evidence of working time and other specific documents must be made available to the staff of the authority monitoring unreported employment (Finanzkontrolle Schwarzarbeit).

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Employer’s liability

As an employer you are liable if your contractor or that contractor’s sub-contractor does not pay at least the minimum wage or fails to make contributions to the holiday pay fund.

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The consequences of non-compliance

Violations of the MiLoG, the AEntG and the AÜG are punishable as administrative offences.

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Right of an employee to sue

The employee has the right to sue for compliance with legal working conditions.

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Minimum conditions of employment

General conditions of employment

Minimum pay pursuant to the Minimum Wage Act

Minimum pay pursuant to the AEntG, wage floor pursuant to the AÜG

Further remuneration components beyond the minimum wage

Overtime premiums

Length of holidays

Holiday pay

Additional vacation allowance

Holiday fund procedures

Accommodation requirements

Travel expenses

Special rules for certain activities

The Minimum Wage Act in cross-border passenger and goods transport

Other obligations

Employer’s liability

The consequences of non-compliance

Right of an employee to sue

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