Ensuring legal compliance with the minimum wage law (MiLoG)
The German minimum wage law (MiLoG) has been amended for the first time since its introduction on August 11, 2014.
Ministerial directives are expected to clarify individual cases.
In practice, however, they result in an ever greater number of problems regarding the application of article 17 of the MiLoG.
This regulates the creation and provision of documents—and thus the recordkeeping obligations for employers—and specifies deadlines.
Exceptions from the minimum wage and income limits, which exempt employers from recordkeeping, are, on the one hand, clearly defined. On the other hand, they are being reversed by the respective courts in individual cases or favorably benefiting the employer.
After a “familiarization phase” where employers were for the most part not penalized for violations, regulatory authorities are now consistently applying article 21 of the MiLoG.
According to the penalty regulations of article 21 of the MiLoG, penalties can amount to up to €500,000.
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