Minimum Wage

Current case law of the Federal Labour Court on forfeiture periods

In June 2018, the Federal Labour Court (Bundesarbeitsgericht, BAG) dealt intensively with forfeiture periods. The judgments addressed: The date when the deadline starts to run (07 June 2018; docket number 8 AZR 96/17); The suspension due to settlement negotiations (20 June 2018; docket number 5 AZR 262/17); and The entitlement for statutory minimum wage during the period of incapacity for work despite forfeiture periods under tariffs (20 June 2018; docket number 5 AZR 377/17). Start …

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Minimum wage increase

The statutory minimum wage increases: to 9.19 euros on 1 January 2019 and to 9.35 euros per hour on 1 January 2020. This has been decided by the minimum wage commission. The increase is higher than expected. The minimum wage is currently 8.84 euros gross per hour. Every two years, the Minimum Wage Commission (which consists of representatives of employers, unions and science) advises on adjusting the amount. . In doing so, it examines the …

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Minimum wage also applies to public holidays and night work premiums

Remuneration on public holidays, as well as night work premiums, which are based on the actual hourly earnings must be calculated at least on the basis of the minimum wage. This is the result of a new judgment by the Federal Labour Court dated 20 September 2017 (docket number 10 AZR 171/16). In the case at hand, the collective bargaining agreement provided for a night work premium amounting to 25% of the actual hourly earnings, and remuneration for …

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Demonstrating readiness to work every three minutes is unreasonable

On 10 August 2017 the Labour Court of Berlin stated that it is unreasonable to require a taxi driver to press a button at short intervals of time in order to control the employee’s readiness to work (judgement of the Berlin Labour Court dated 10 August 2017, docket number 41 Ca 12115/16). The employee works as a taxi driver for a taxi company. During those periods of time when he was not driving the taxi …

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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 which contained the following forfeiture clause: All claims of the parties arising under the employment contract shall be deemed forfeited …

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