Germany: government approves bill tying public contracts to collective agreement adherence

On 6 August, Germany’s Federal Cabinet approved a draft law that would require companies bidding for public contracts to comply with sectoral collective agreements. The measure is intended to revive declining membership of such agreements and curb unfair competition from firms that refuse to recognise them.

By Thomas Schnee. Published on 29 August 2025 à 12h43 - Update on 29 August 2025 à 17h07

Germany’s cabinet has approved the draft law on ‘loyalty to collective agreements’ (Bundestariftreuegesetz) — a measure previously backed by the Social Democratic Party (SPD) in the last parliament but shelved after the coalition collapsed and snap elections were called in February 2025.…

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