Entry into force of the Minimum Wage Act (MiLoG)

With effect from 1 January 2015, the Minimum Wage Act (MiLoG) comes into force without transitional provisions. It regulates a nationwide, sector-independent minimum wage. It stipulates that every employee in Germany is entitled to a gross minimum wage of € 8.50 per hour worked. Compliance with this law is the responsibility not only of employers but also of their clients.

Subcontractors must therefore confirm that they comply with the legal requirements of the Minimum Wage Act without exception and continue to indemnify the client against all recourse claims. At the same time, there is a threat of contractual penalties in the event of violations.

The law currently stipulates that the Minimum Wage Act also applies to foreign drivers for the time they spend in Germany. German labour law applies during this time. However, an implementing regulation is still missing.  It is still unclear how this "dwell time" in Germany will be assessed and verified.  Employment contracts and timesheets with a German translation should be carried by domestic and foreign drivers or at least a confirmation that these are available for inspection at the business premises.

Conflicting regulations and legal uncertainties are currently being considered at European law level. Until there is clarity in this regard, the law applies as adopted.

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