The global solution for human resource professionals, combines custom research, strategic white papers, country primers, webinars and OnDemand educational programs, and the expert guidance...
Sept. 15—Increased bureaucracy and documentation obligations are the main obstacles companies face in the first few months of Germany's new minimum wage legislation, Sarah Wékel, labor lawyer and associate in the Berlin office of Baker & McKenzie, said at a breakfast briefing on “Minimum Wage in Legal Practice.”
Approximately 3.7 million German employees are eligible for Germany's first hourly minimum wage of 8.50 euros ($9.50), which has been in effect since Jan. 1.
An expert commission—made up of three employer and three employee representatives and two academic experts—will adjust the minimum wage every two years beginning Jan. 1, 2017.
Interns under 18 and the long-term unemployed in the first six months of new employment are not eligible for the minimum wage.
Employers risk fines of up to 500,000 euros ($561,000) for attempting to evade the minimum wage requirement, and affected employees can sue their employers for up to three years after a failure to pay the minimum wage.
Companies not compliant with the minimum wage requirement can also be excluded from participating in public contracts, Wékel said, noting that the payment obligation applies to companies based both in Germany and abroad that have employees working in Germany.
New documentation requirements have been imposed on employers in sectors where a special risk of abuse exists, such as construction, logistics, housekeeping and the restaurant industry.
To contact the reporter on this story: Andrea Barbara Schuessler in Berlin at email@example.com
To contact the editor responsible for this story: Rick Vollmar at firstname.lastname@example.org
Full text of the minimum wage law is available at http://www.bgbl.de/banzxaver/bgbl/start.xav?startbk=Bundesanzeiger_BGBl#__bgbl__%2F%2F*%5B%40attr_id%3D%27bgbl114s1348.pdf%27%5D__1424282222921, a list of the members of the minimum wage commission at http://www.der-mindestlohn-wirkt.de/ml/DE/Alle-Fakten/Die-Kommission/die-kommission.html;jsessionid=6F19D259BD5A4D68E842084FF2F74E15, more information on the minimum wage at http://www.der-mindestlohn-wirkt.de/ml/DE/Startseite/start.html, all in German.
For more information on German HR law and regulation, see the Germany primer.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)