An Overview of the New German Minimum Wage Act (Mindestlohngesetz, Milog)

Minimum Wages in Germany – You Might Be Affected, Too: An Overview of the New German Minimum Wage Act (Mindestlohngesetz, MiLoG)

By Dr. Marc Spielberger and Angela Schilling

ermany recently established its first national minimum wage legislation providing for a minimum wage of EUR 8.50 per hour. G Unlike most European countries and the U.S., Germany did not previously have any nationwide minimum wage legislation. Instead, it was mainly the responsibility of labor unions and employers’ associations to lay down minimum wages in collective bargaining agreements. In the coalition agreement, which was negotiated by the Christian Democratic Union (CDU)/Christian Social Union (CSU) and the Social Democratic Party (SPD) after the parliamentary election in September 2013, the new German government has planned quite a considerable number of new labor and social law regulations. The Federal Ministry of Labor and Social Affairs, responsible for their implementation, is taking the provisions very seriously and has set a remarkably quick pace. This has, in a relatively short period of time, led to the Minimum Wage Act, which is part of the reform package “Act on Strengthening Collective Bargaining Autonomy” (Tarifautonomi- estärkungsgesetz). In July, the Federal Minister of Labor proudly announced: “The minimum wage is coming”. In the following, we will describe the basic features of the new Minimum Wage Act and why it may also affect U.S.-companies and employers. I. Introduction

On July 3, 2014, in its 46th session, the lower house of the German parliament DR. MARC SPIELBERGER is a licensed (Bundestag) approved the German Act on the Regulation of a Minimum Wage labor law specialist in Munich, Germany, (Mindestlohngesetz; hereinafter referred to as “Minimum Wage Act”) based on a and is a partner in the law firm Reed recommendation and a report of the Committee for Labor and Social Affairs. In Smith, LLP; its 924th session on July 11, 2014, the upper house of the German parliament (Bundesrat) approved the draft law. With few exceptions, the law provides for the MS. SCHILLING is an attorney-at-law right to a minimum wage effective January 1, 2015. The Minimum Wage Act in Frankfurt am Main, Germany, and is a was promulgated in the Federal Law Gazette on August 15, 2015 and entered partner in the law firm Beiten Burkhardt. into force on August 16, 2014.

II. Which Persons Are d) Long-Term Unemployed People Entitled To The New Statutory For employment relationships of employees who have been long-term unemployed (one year or longer) directly before Minimum Wage? the beginning of their employment, the minimum wage shall not apply during the first six months of employment. 1. Persons Employed In Germany On June 1, 2016, the German government must report to the legislative bodies on the extent to which this special The Minimum Wage Act principally applies to all em- regulation for the long-term unemployed has promoted ployees who are employed in the territory of the Federal their reintegration into the labor market and give an opin- Republic of Germany. Whether the employer is based ion on whether this provision should continue to exist. inside or outside of Germany is irrelevant. The Minimum This regulation to promote reintegration into the labor Wage Act therefore also applies to foreign employers market had been strongly disputed in the run-up to the and their employees if such employees perform work law’s enactment. The Minimum Wage Act accommodates in Germany. this by including the review obligation. 2. Exempted Types of Employees 3. Temporary Exceptions

a) Interns a) Deviating Collective Bargaining Agreements As a general rule, interns are entitled to the minimum wage Until 31 December 2017 as well. The minimum wage applies to interns in order to The Minimum Wage Act will provide for a right to a mini- reduce the number of underpaid young employees who mum wage as from January 1, 2015. Until December 31, are performing normal work as so-called “interns”. 2017, deviating provisions of any collective bargaining Interns are consequently exempt from the Minimum agreement signed by representative collective bargaining Wage Act’s scope of application if: partners shall prevail over the minimum wage if it has been made binding for all employers, based in Germany or abroad, (1) they are completing an internship that is mandatory that fall under the collective bargaining agreement’s scope of for their school education, vocational training or application and their employees. This applies accordingly to higher education, or in the framework of a coopera- minimum wages fixed on the basis of the German Second- tive education program which is regulated by law; ment Act (Arbeitnehmerentsendegesetz) and Section 3a of (2) they are completing an internship of up to three the German Act on Temporary Agency Work (Arbeitnehm- months to help them make a career choice or before erüberlassungsgesetz). However, the aforementioned deviating taking up studies; regulations must provide for a remuneration of at least (3) they are completing an internship of up to three months EUR 8.50 per hour effective January 1, 2017. This means in addition to their vocational training or higher that if the statutory minimum wage is increased subsequent education, unless they have previously completed an to its first revision on January 1, 2017, representative collec- internship with the same employer; or tive bargaining partners may maintain the initial minimum (4) they are participating in a qualification module wage of EUR 8.50 per hour until December 31, 2017. (Einstiegsqualifizierung) pursuant to section 54a SGB III (Third Book of the German Social Code) b) Newspaper delivery persons or in preparatory vocational training pursuant to The Minimum Wage Act also provides for special rules for sections 68 to 70 of the German Vocational Training newspaper delivery persons. Effective January 1, 2015 they Act (Berufsbildungsgesetz, BBiG). will be entitled to 75%, and effective January 1, 2016 to 85% of the minimum wage. From January 1, 2017 until b) Minors December 31, 2017, the minimum wage will amount Children and adolescents without completed vocational to EUR 8.50 per hour. Newspaper delivery persons are training are exempt from the Minimum Wage Act. persons who are employed to deliver exclusively periodical newspapers or magazines to end customers, which also c) Trainees And Volunteers includes advertising journals with editorial content. Neither does the Minimum Wage Act regulate the remu- The special treatment of a specific group of employees neration of persons whose work is part of their vocational comes as a surprise and, with a view to this individualized training or who work on an honorary basis. regulation, is an inconsistency in the law. This exemption

164 LABOR LAW JOURNAL FALL 2014 is justified by the functioning of the freedom of the press with the minimum wage (functional equivalence of and the time needed for adjustments in rural and structur- comparable benefits). ally disadvantaged regions in particular. Employers from other sectors would certainly have welcomed extended b) Remuneration Elements For time limits as well. Performance Exceeding Ordinary Performance Or For Other Purposes c) Seasonal Workers In contrast, additional remuneration elements for addi- The special regulation for this group that is particularly im- tional performance by the employee shall not be included portant for agriculture is not provided for in the Minimum in the minimum wage if they constitute compensation for Wage Act itself. An amendment to the Fourth Book of the extra work or work hours under special circumstances. This German Social Code now stipulates that the time limits applies, for example, to premiums for work on Sunday for marginal employment (geringfügige Beschäftigung) in and on holidays, night-work pay, shift premiums or over- the form of short-term employment (kurzfristige Beschäf- time pay. In this case, the special time of the performance tigung) are extended to accommodate problems with beyond the ordinary remuneration is honored. In other seasonal work in the context of the introduction of the cases, the particularly inconvenient, difficult, physically or minimum wage. From January 1, 2015 to December 31, psychologically particularly troublesome or dangerous cir- 2018, employment of marginal employees may be limited cumstances under which work is performed are accounted to no more than three months (instead of two months) or for in the form of dirty-work bonuses or hazard pay. Also 70 working days (instead of 50 working days) within one covered are those cases where the employee performs more calendar year, or can be contractually limited in advance. work per time unit (e.g. piecework bonuses) or renders a This provision will automatically expire on December 31, special quality of the work (quality bonuses). 2018, to prevent a general increase of marginal employment that is exempt from social security contributions. c) Differentiation The minimum wage must therefore generally be paid to Thus, the differentiation of remuneration components seasonal workers effective January 1, 2015, but in return counting as part of the minimum wage and other remunera- the above changes allow longer employment of seasonal tion components is clear: If the employer intends to honor workers, with a privileged social security status. only the actual contractual performance, then, in principle, the respective remuneration counts as part of the minimum III. Content Of The Minimum wage. If, however, a further or other purpose is pursued, no crediting shall take place in general. This means that capital Wage Claim accumulation benefits shall not be credited whereas lump- sum payments in the nature of a pay raise may be credited. 1. EUR 8.50 Per Hour If an employee is provided with a company apartment, the benefit in money’s worth may be credited, as this generally Each employee is entitled to the minimum wage. Effective does not correspond to a special purpose of the work per- January 1, 2015 the current amount of the minimum wage formance; the remuneration for the normal performance will be EUR 8.50 (USD 11.22) gross per hour. according to contract is only partially paid out in another form. The same applies for other benefits in kind. Though 2. Which Remuneration Elements Can company cars with the possibility of private use are rather Be Taken Into Account? unlikely in this wage segment, the same would apply. Ac- cordingly, holiday pay and Christmas bonuses may also be a) Remuneration Elements For Regular credited, but only when the employee actually and irrevo- Contractual Performance cably receives the pro rata amount on the due date decisive for the minimum wage. Unnamed gratuities, general extra The Minimum Wage Act also does not contain any pro- pay and performance bonuses, bonuses, royalties, variable vision concerning which remuneration elements can be remuneration, profit-sharing and commissions should counted towards the minimum wage. Therefore, count- therefore be regularly creditable insofar as they are paid ing towards the minimum wage is regularly possible if monthly at due date, as in this case only the actual work allowances or premiums, together with other benefits of performance is honored. This does not apply for loyalty or the employer, are intended to compensate such perfor- attendance bonuses, as in these cases a purpose exceeding mance of the employee that is subject to remuneration the normal work performance is remunerated.

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d) Commission Payments/Agreements to monthly pro rata payments of 1/12 before the agreed On Objectives due date so that they can be credited against the mini- An unfortunate situation may occur for an employer in mum wage. case of agreements containing commission payments and/ or agreements on objectives, if, for example, quarterly IV. Due Date Of The targets are agreed. In this case, the employee shall at least be paid his/her monthly minimum wage claim in the Minimum Wage future. Hence, the employee could receive a monthly advance payment with respect to the commission or 1. Regular Case performance-based component on a pro rata basis so that the minimum wage is complied with. If the employee According to the Minimum Wage Act, the employer is earns more at a later point in time, the surplus will then obligated to pay its employees the minimum wage at the be paid out. If the employee would have earned less with agreed due date, however, at the latest on the last bank respect to commissions, the minimum wage already paid working day (Frankfurt am Main) of the month follow- remains applicable. ing the month during which the work performance was carried out. e) Piece And Task Wages Piece and task wages remain permissible; however, the 2. Exceptional Case: Working Time Account amount of the minimum wage for each hour must be as- sured. In practice, regular working time reviews or other a) Special Provisions For Working Time Accounts appropriate measures will be required to ensure that the piece wage method verifiably complies with the minimum According to the Minimum Wage Act, it is possible to add wage requirements. It has not yet been clarified in what hours exceeding the contractually agreed working hours way general and standardized calculations are permis- to a working time account. However, such working hours sible. If guaranteeing a minimum wage is not possible, must be compensated by paid free time or payment of the there must consequently be a switch from piece wage to minimum wage within twelve calendar months of their hourly wage. monthly recording. This applies, however, only insofar as the entitlement to the minimum wage claim has not yet f) Minimum Wage And “Mini Jobs” been fulfilled by payment of the regular remuneration In case of marginal employment as defined in section 8 for the contractually agreed working hours. The working SGB (German Social Code) IV (“mini job”) (employ- hours added to the working time account may not exceed ment relationships with a regular monthly salary of not 50% of the contractually agreed working hours per month. more than EUR 450.00 or employment relationships In case of termination of the employment relationship, not exceeding certain time periods) with an hourly wage the employer shall compensate any working hours not yet less than EUR 8.50, the minimum wage may result in an compensated no later than the calendar month following exceedance of the payment threshold in the amount of the termination of the employment relationship. EUR 450.00 per month and thereby establish a regular insurable employment relationship as of January 1, 2015. b) Working Time Accounts Outside The Minimum If the marginal employment status is to be retained, the Wage Act agreed working time must be reduced accordingly to fall With respect to a stabilized earned income on the basis of below the EUR 450.00 threshold even in case of payment at least the minimum wage, the working hours exceeding of the minimum wage. the contractually agreed working time which are added to the working time account do not have to be compensated g) Practical Comments within twelve months after having been added; they may Altogether, it is advisable for employers with employees in remain on the account for a longer period of time and the the minimum wage sector to structure regulations in new special provisions of the Minimum Wage Act do not ap- agreements to the effect that allowances and premiums are ply. Thus, a working time account is not governed by the restricted to additionally honoring special circumstances. Minimum Wage Act if the minimum wage legally owed Anything else would be part of the fixed remuneration. As by the employer pursuant to the Minimum Wage Act is far as feasible, existing agreements should be adjusted by already paid by virtue of the regular monthly remunera- mutual agreement. Annual payments should be changed tion for all working hours performed, including overtime.

166 LABOR LAW JOURNAL FALL 2014 It is important in this regard that this concerns not only subcontractors asserting claims against them to the extent the remuneration of the regular working time on a mini- possible. This can be realized through: mum wage basis; the value of the overtime added to the Careful selection of the contractor in terms of verify- working time account must also be imputed in the value ing if it is a reliable and/or renowned bidder. of the regular monthly income (although they have not Plausibility check of the contractor‘s offer: Is it yet been compensated). In this case, the total stabilized possible for the contractor to profitably render the monthly income has to be higher than the minimum wage. required service upon payment of the minimum wage? Otherwise, compensation must be made within a period Inclusion of the contractor‘s guarantee for consistent of twelve months. and timely payment of the minimum wage set out in the contract, if necessary, complemented by an V. Binding Nature Of The additional contractual penalty. Commitment of contractor to ensure that if subcon- Minimum Wage tractors are commissioned, these subcontractors shall similarly contractually undertake to pay the minimum The Minimum Wage Act is indispensable. It is only pos- wage and, in case the subcontractor commissions sible to waive already existing claims in a court settlement. further subcontractors, to include such obligation in Beyond that, any waiver would be invalid. The same their respective contracts as well. applies for all agreements on a wage falling below the Conclusion of an agreement involving a commit- minimum wage or agreements regarding the limitation or ment of the contractor to regularly provide (monthly) exclusion of the enforcement of the minimum wage claim. evidence of payment of the minimum wage and Forfeiture of the right to a minimum wage is excluded. verification of supporting evidence by the principal. If necessary, this may be supplemented by an ad- VI. Principal’s Liability ditional contractual penalty. The contractor shall in turn undertake to subject its subcontractors to cor- responding verification. 1. Reference to the German Secondment Conclusion of an agreement regarding a requirement Act (Arbeitnehmerentsendegesetz) of information or even approval for the contractor when making use of subcontractors. The Minimum Wage Act provides for the principal’s li- Provision of recoverable collateral by the contractor ability in synchronization with the German Secondment to the principal covering the liability risk. Act to which the provision refers. Thus, an obligation is Conclusion of an agreement that the contractor created for all entrepreneurs (principals) who make use also assumes the same liability as guarantor towards of third parties (contractors) when providing services and the principal. works. Entrepreneurs are liable for the obligation of (1) Conclusion of an agreement stipulating a special their contractor, (2) a subcontractor (Nachunternehmer) termination right in case of a violation of the commissioned by the contractor or (3) a lender (Verleiher) Minimum Wage Act and/or the obligations agreed commissioned by the contractor or a subcontractor to in this context. pay their respective employees the minimum wage in the same manner as a guarantor who has waived the defense VII. Adjustment of the Minimum of failure to pursue remedies. The liability only comprises the amount to be paid out Wage from 2017 to employees after deduction of taxes and contributions to social security and promotion of employment or cor- 1. The Minimum Wage Commission and responding expenses for social security (net remuneration). the Adjustment Procedure

2. Practical Comment The so-called Minimum Wage Commission shall carry out an examination of the minimum wage level every two Entrepreneurs who depend on the assistance of subcon- years, on the first occasion by June 30, 2016 effective as tractors in order to provide their services and works are of January 1, 2017. The objective of such a “global assess- forced by such provision to adopt appropriate measures ment” is for the Minimum Wage Commission to evaluate to reduce the risk of employees of their contractor or its which minimum wage level “is likely to contribute to an

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adequate minimum protection of employees, facilitate although this would be reasonable and useful. The mini- fair and functioning competition and not to jeopardize mum wage will have an impact on future pension claims employment.” The Minimum Wage Commission must be and other supporting social assistance. In consideration of “subsequently guided by” the development of the wages these implications, it would be rather advisable to provide negotiated by the parties of collective bargaining agree- for a broader participation in the Minimum Wage Com- ments. Negotiated wages shall serve as an “important mission procedure. The development of the minimum benchmark” for the future level of the minimum wage. wage is thus primarily in the hands of trade unions and Once the Minimum Wage Commission has formed employers’ associations, whose collective wage agreements an opinion, it shall adopt a resolution on the necessity to are to be decisive for the resolution to be adopted by the adjust the minimum wage by a simple majority. If the Ger- Minimum Wage Commission. They may, but do not have man Federal Government shares the opinion of the Mini- to let their decision be influenced by either scientists or mum Wage Commission, the resolution adopted by the other third parties. Even the Federal Government only has Minimum Wage Commission is rendered legally binding a veto right in respect of the decision on the adjustment through ordinance of the German Federal Government. of the minimum wage through which the implementation However, in this procedure the Federal Government may of an adjustment can be rejected. In such event, however, not make any substantive changes to the proposal of the the Federal Government would have to explain to the Minimum Wage Commission. The Federal Government general public why a decision on the necessity of an ad- can either follow the resolution adopted by the Minimum justment of the minimum wage, adopted by employers’ Wage Commission or there will be no adjustment of the and employees’ associations, has been rejected. It seems minimum wage. As regards the time of entry into force of to be unlikely that such a view would ever be politically the adjustment, the Federal Government is also bound to enforceable. Hence, upon closer pragmatic inspection, it is the specification of the Minimum Wage Commission. The ultimately only four persons who will reach a decision on date determined by the Commission may merely not be the minimum wage level which will then be valid for 80 earlier than the pronouncement of the ordinance. million German inhabitants plus all those foreign persons The Minimum Wage Commission is comprised of a working in Germany. And it could also occur in future total of nine members appointed by the Federal Govern- that, depending on who holds the chair and therefore ment: The chair, six members, of which three each come casts the deciding vote in case of an alternating chair, the from the employers’ associations and the trade unions, and wage increase will be higher (if the chair is held by the two scientific advisers, one from each side. The members employees’ side) or lower (if held by the employers’ side). of the Minimum Wage Commission are appointed at the suggestion of the leading employers’ and employees’ VIII. Reporting And Documentation organizations. The involvement of the scientific advisers as regards the decision on the level of the minimum wage Requirements, Especially For is, however, limited due to the fact that they have no vot- Foreign Employers ing right in the Minimum Wage Commission’s decision- making procedure. The chair’s vote shall be decisive if The Minimum Wage Act imposes reporting and docu- the members of the Minimum Wage Commission with mentation requirements with regard to certain groups of a voting right fail to reach an agreement. The chair shall employees, which are meant to facilitate the monitoring be suggested in common agreement by the employers’ of compliance with the Minimum Wage Act. Foreign em- and the employees’ side. If such a consensus cannot be ployers are subject to additional reporting requirements. reached, there shall be two chairs with one representing the trade union and the other representing the employ- 1. Documentation Of Hours Worked And ers’ association who alternately hold the office of chair Remuneration Paid from resolution to resolution on the adjustment of the minimum wage, a so-called alternate chair. Employers who employ people on a marginal employment’ contract (outside private households) or directly 2. Criticism hire or lease workers in the sectors defined in section 2a of the German Control of Unreported Employment Pursuant to the Minimum Wage Act, neither the Federal Act (Schwarzarbeitsbekämpfungsgesetz - SchwarzArbG) Employment Agency (Bundesagentur für Arbeit) nor (building and construction, hospitality, passenger trans- the social security institutions have a participation right, portation, freight haulage, transport and related logistics,

168 LABOR LAW JOURNAL FALL 2014 operation of fairgrounds, forestry, industrial cleaning, instructions, for instance the site supervisor or the fore- construction and take-down of trade fairs and exhibitions, man. Such registration must further be made in writing, and the meat industry) have to record the beginning, the in German and “prior to the start of each work or service end and the duration of the daily working time of these to be performed”. It is unclear whether the registration employees no later than seven days following the perfor- document must be filed at least one working day before mance of a day’s work and then keep these records for at the start of the work or service to be performed or does least two years. not need to be filed until immediately prior to the start This documentation duty may be passed to third parties of the relevant individual’s employment. or the employees concerned. In addition, the employers A similar requirement is imposed on businesses in the subject to the documentation obligation must retain re- industries listed in Section 2a of the German Control of cords in German proving payment of the minimum wage Unreported Employment Act who employ people within in Germany for the entire duration of the employment, the scope covered by the Minimum Wage Act that are but no longer than for two years. This includes,inter alia, leased from a labor supplier with registered office abroad. records of the time worked and evidence of the amount They also have to register the foreign temporary workers and composition of the wages paid. The audit authority with the competent customs authority in writing and in may also demand that the documents be kept available at German prior to the start of any work or services to be the place of employment. provided, stating the workers’ name and date of birth, the According to the draft bill, the reasons behind these start date and duration of the lease, the place of employ- additional obligations in respect of certain groups of ment, the place within Germany where the documents will employees are the exceptionally low wages of people in be kept (see above), the personal data and address of the marginal employment and the very high fluctuation of labor supplier and of an authorized recipient of service. working time in the sectors identified in The German Such registration documents must have attached to Control of Unreported Employment Act. them the foreign employer’s or the labor supplier’s as- The German Federal Ministry of Finance, in consulta- surance that their employees in Germany receive the tion with the German Federal Ministry of Labor and minimum wage. Social Affairs, may simplify or modify the recording and Changes in the information provided with the registra- documentation requirements described above by decree tion must be notified without delay. where this is necessary due to particularities of the work Any culpable breach of the above obligations is deemed or services to be performed or due to particularities of the an administrative offense incurring a fine of up to specific industry or business sector. EUR 30,000. 2. Additional Reporting Requirements For IX. Violations Of The Minimum Foreign Employers And Labor Suppliers Wage Act The Minimum Wage Act imposes additional extensive reporting requirements on foreign employers and labor A violation of the obligation to pay the minimum wage suppliers in the above-mentioned industries. Employers in a timely manner or the culpable – substantial – engage- having their registered office abroad and employing people ment of a contractor paying below minimum wage or such within the scope covered by the German Minimum Wage contractor’s engagement of sub-contractors paying below Act and in industries listed in Section 2a of the German minimum wage, may incur a fine of up to EUR 500,000. Control of Unreported Employment Act (see above) are Anyone who has incurred a fine of at least EUR 2,500 obliged to have these employees registered with the com- for a breach of the Minimum Wage Act is “supposed” petent customs authority. to be excluded from tenders for public supply, works or The registration document must contain detailed in- service contracts for a “reasonable time” until such party’s formation on the individual’s employment. This includes reliability is “proved to be restored”. It only applies to cases the employee’s personal data such as the name and date where the administrative offense proceedings have been of birth, but also information on the beginning, the ex- concluded. With regard to this sanction, the awarder of a pected duration and the place of employment, the place public contract has a wide discretion both in determining within Germany where the documents will be kept, the whether or not to exclude the offender and in determining personal data and address of the “person in charge” in the duration of such exclusion. The Minimum Wage Act Germany, i.e. of the person who has the authority to give keeps quiet on how the parties concerned will be able to

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prove the restoration of their reliability. A suitable means of business are further subject to extensive reporting seems to be the submission of an excerpt from the German obligations, the violation of which may lead to a fine of Federal Central Criminal Register (Bundeszentralregister) up to EUR 30,000 and to an exclusion from tenders for where final decisions on fines exceeding EUR 200 and public supply. imposed in connection with the exercise of a trade or The Minimum Wage Act still contains some ambi- any other commercial undertaking are registered. Fines guities. It will be up to the labor courts to interpret the of EUR 300 will be deleted from the register three years Minimum Wage Act. This is nothing completely unusual after the effective date of the relevant decision, higher when a new law is passed. fines will be deleted five years following the effective date It will be interesting to see how some of the industries of the decision. will react to the minimum wage. A minimum wage is nothing new to the sectors named in the German Sec- X. Comments on the Minimum ondment Act. Yet, one or the other employer that is now required to pay minimum wage for the first time could get Wage Act and Conclusion the idea to circumvent the Minimum Wage Act by trying to engage people without an employment contract. The German, as well as foreign employers, must pay the Minimum Wage Act applies to employees only. Freelancers statutory minimum wage to their employees working and similar “self-employed” individuals are not affected in Germany. Such employers should review their em- unless they only formally work in any capacity other than ployment conditions if it cannot be concluded that the as an employee. Disguised employment contracts could threshold of EUR 8.50 per hour is met. Not all remunera- be on the rise again. The Federal Minister of Labor is al- tion components may be counted as part of the minimum ready bringing out the next labor-law gun to accompany wage. Marginal employment agreements, the so-called the fight against misuse of the various types of contracts: “mini jobs”, must also be reviewed carefully. The violation Another draft bill aiming at fighting the misuse of con- of the duty to pay the minimum wage may lead to a fine tracts for works is intended to be on the table in 2015. of up to EUR 500,000 and to an exclusion from tenders The German Act on Temporary Agency Work (AÜG) is for public supply. Foreign employers of certain branches likely to follow.

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