Category Archive: Minimum Wage

Forfeiture clause was valid to prevent employee’s claim despite not excluding minimum wage entitlement

In a judgement of 9 May 2017 (docket number 7 Sa 560/16 ) the regional labour court of Nurnberg held that a forfeiture clause which did not exclude entitlement to minimum remuneration was not invalid. The forfeiture clause simply did not apply to claims for minimum remuneration. The parties had entered into an employment contract …

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Attendance premiums may set off minimum wage entitlement

Attendance premiums paid in addition to the hourly wage may be used to satisfy an employee’s minimum wage entitlement (judgment by the Higher Regional Labour Court Mecklenburg-Vorpommern dated 22 November 2016, docket number: 5 Sa 298/15). In the case at hand, the employee was entitled to a remuneration based on an hourly wage as well …

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Statutory minimum wage for on call times

The Federal Labour Court (Bundesarbeitsgericht) decided on 29 June 2016 (5 AZR 716/15) that the statutory minimum wage must be paid for each hour of actual work. On call times during which the employee has to be available to start work if required at a place that is determined by the employer also count as …

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German Federal Minimum Wage to Increase by 4% in 2017

German Employees subject to the federal minimum wage are going to notice a significant increase in their hourly wages. The hourly minimum wage will rise from the current level of EUR 8.50 to EUR 8.84 as of 1 January 2017. This increase is equivalent to a 4% wage increase. The decision to raise the hourly …

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Holiday pay is not creditable against the statutory minimum wage

On 25 September 2015, the Higher Labour Court (Landesarbeitsgericht, LAG) Berlin-Brandenburg (docket number: 8 Sa 677/15) was concerned with the question, whether holiday pay is creditable against the statutory minimum wage. However it ruled, that the holiday pay is not creditable against the statutory minimum wage without an effective change of the employment contract. Substantially …

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Statutory minimum wage does not constitute a reference point to establish the invalidity of a salary agreement

The Federal Labour Court (BAG) ruled on 18 November 2015 (docket number 5 AZR 814/14) that the comparative standard to render a salary agreement invalid is the common salary in the relevant economic sector and not the minimum wage. In the case at hand, the employee worked as a bus hostess on a school bus …

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Special allowance for work during normal hours can be included in the minimum wage

On 12 January 2016, the Higher Labour Court Berlin-Brandenburg (Landesarbeitsgericht, LAG) ruled (docket number 19 Sa 1851/15) that whether or not a special allowance has to be paid in addition to the minimum wage, depends on the reason for the special allowance. If the special allowance is paid for the regular work which an employee …

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No dismissal with the option of altered conditions to offset minimum wage

A dismissal with the option of altered terms and conditions will be invalid if additional payments are taken away to offset the higher hourly base pay required under the Minimum Wage Act (judgment of the Higher Regional Labour Court of Berlin-Brandenburg, Landesarbeitsgericht, LAG, dated 25 September 2015, docket number 8 Sa 677/15). In the case …

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Holiday and Christmas Bonus – No Crediting against Minimum Wage Entitlement

On 2 October 2015 the Higher Court of Berlin-Brandenburg (Landesarbeitsgericht Berlin-Brandenburg) decided that an employer must not credit the employee´s entitlement to holiday and Christmas bonus against the obligation to meet the legal requirements of the Minimum Wage Act (docket number: 9 Sa 570/15). Since the Minimum Wage Act (Mindestlohngesetz) became effective of 1 January …

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Trucks drivers passing through Germany may be subject to statutory minimum wage

The Federal Constitutional Court (Bundesverfassungsgericht) decided on 25 June 2015 (docket number: 1 BvR 555/15) that it is not competent to rule on the applicability of the Minimum Wage Act to transnational carriers. Companies are required to bring this issue before the relevant local courts first before the Constitutional Court may rule on the applicability. …

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