Tag Archive: minimum wage

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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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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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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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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Documentation obligations for minimum wage employers reduced

With effect from 1 August 2015 the Regulation on Minimum Wage Documentation (Mindestlohndokumentationspflichtenverordnung) was amended by the Federal Ministry for Labor and Social Affairs. Since the Minimum Wage Act (Mindestlohngesetz) came into effect on 1 January 2015 a documentation requirement was imposed on employers which employ low-paid employees (earning a maximum monthly salary of EUR …

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Minimum wage even for non-working time – a signal from the German Federal Labour Court

The new Minimum Wage Act (Mindestlohngesetz (MiLoG)) raises a number of questions including how to deal with lost working time due to public holidays, sick leave or annual leave. Does the employer need to pay the statutory minimum wage for such non-working time? It may take a while until the Federal Labour Court clarifies these …

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Roundup on the New Minimum Wage

Since the nationwide statutory minimum wage of EUR 8.50 per working hour entered into force on January 1, 2015, court cases dealing with minimum wage issues are slowly starting to trickle in. Here we present two new decisions on this topic. The Berlin Labour Court (Arbeitsgericht Berlin, ArbG) recently held that the dismissal of employees …

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There is no way around it

As the nationwide statutory minimum wage of EUR 8.50 has been in force for a good two months now, the first court cases dealing with minimum wage issues start rolling in. According to a recent decision by the Berlin labour court (Arbeitsgericht Berlin, ArbG), additional vacation pay and annual additional payments will not count towards …

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