Germany: new Act against social dumping in temporary sector blamed for lacking in ambition and being unclear

General agreement on minimum wage in the temporary sector.  Ursula von der Leyen, Federal Minister of Employment and Social Affairs, openly rejoiced, on Thursday, March 24th, of the amendment to the Act on Temporary Employment Businesses.  The latter determines the framework within which foreign employees can work in Germany.  It also helps contain social dumping in sectors exposed to competition by imposing statutory minimum wage: “With the introduction of minimum wage, preventing social dumping via foreign collective agreements” she said when commenting the only amendment agreed on by all the MPs, except Die Linke (left wing) MPs.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

Starting on May 1st, when workers from the new EU Member States are allowed to come and offer their services in Germany, the 900,000 German temporary workers will be covered by sectoral minimum wage – €7.79 an hour in western Germany and €6.89 in the east. These rates were negotiated by the two temporary employers’ organizations and the German Trade Union Confederation (DGB). This amendment was necessary to rectify a provision voted in 2003 by the social-democratic and green majority. Indeed

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
Portugal: open consultation on the transposition of the Pay Transparency Directive
The news. On 5 August 2026, the Portuguese government published a document proposing a draft text to transpose the EU Pay Transparency Directive as the basis for a public consultation open until...
EU: the Commission will set up an Expert Group on the impact of AI in the world of work
The news. On 22 July 2026, the European Commission published a progress report on the EU-27’s achievements regarding the objectives of the European Pillar of Social Rights, reinforced by the...
Belgium: toward an additional five days of leave following the birth of a child
The news. On 18 July, the Belgian federal government approved a draft bill introducing an additional five days of leave following the birth of a child. This entitlement would be added to existing...
Germany: a national action plan to strengthen collective bargaining
The news. On 22 July, the German federal government unveiled a national action plan to promote collective bargaining in response to the requirements of the EU minimum wage directive. The directive...