In the week 13 February 2023 the German Federal Labour Court issued a ruling that could well change salary setting practices at the time of hiring, and result in the re-examination of thousands of employment contracts. The court recognised that a gender wage gap for equal work cannot exist solely on the basis of the ability to negotiate better wages
In a landmark ruling on 16 February 2023 (Case No. 8 AZR 450/21, in German), the Federal Labour Court ruled that women and men are entitled to the same pay for equal work, regardless of their abilities to negotiate better salaries when they are being hired.
Superior salaries due to being ‘better negotiated’
The federal court overturned a ruling handed down by the Saxony Regional Labour Court on a complaint brought by an employee of a metalworking company in Meissen, near Dresden.
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Article authors
Thomas Schnee
Correspondent in Germany
As a Berlin correspondent for the French and Swiss press since the late 1990s, I cover a wide range of economic, political and social issues, with a particular focus on the German business and labour market. My areas of interest include co-determination, digitalisation, demographics and ESG/DEI policies.