Germany : the government coalition parties after much arm wrestling finally agree on a minimum wage rate

Hitherto, only the building and industrial cleaning sectors as well as postal services have a minimum wage often negotiated after a hard battle between political parties and between employers and unions. In fact, the introduction of a minimum wage can be obtained through an exceptional procedure in a sector where the majority of the social partners consider they are victims of social dumping through, for example, cheap competition by workforce or foreign firms. This exceptional procedure, which supposes government approval for its application, is regulated by two laws, that is, the law on posted workers in the European Union (Entsendegesetz) and the 1952 law on minimum working conditions. These two laws will consequently soon be amended in order to facilitate adoption of a minimum wage in a branch where the social partners want, thereby removing from the procedure its complex and exceptional character. 
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ent approval for its application, is regulated by two laws, that is, the law on posted workers in the European Union (Entsendegesetz) and the 1952 law on minimum working conditions. These two laws will consequently soon be amended in order to facilitate adoption of a minimum wage in a branch where the social partners want, thereby removing from the procedure its complex and exceptional character.

The main legislative changes are summarized hereunder :

  • For the law on posted employees, the soci
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