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Minimum wage

Minimum Wage Act and duty of documentation from 01.01.2015 Lower paid and temporary employees

The Minimum Wage Act (Mindestlohngesetz), which took effect from 01.01.2015, includes the codifying of an extensive duty of documentation on the part of the employer regarding temporary and lower-paid employment.  Lower-paid employment is defined as employment where the pay arising from this work does not exceed EUR 450 per month  in accordance with Section 8 (1) SGB IV (social security code). Temporary employment refers to a situation where employment does not exceed three months, or 70 working days, in a calendar year and is not performed as a professional activity. Employment is regarded as a professional activity if it is not of "secondary economic significance"; in other words, any type of employment may not alone be decisive for securing a livelihood or a standard of living if it is to qualify as temporary employment. A three-month period applies when the work is regularly divided into five days in a week. Should employment regularly take place on a basis of less than five days in a week, then a period of 70 working days applies. Section 17 of the Minimum Wage Act includes an extensive duty of documentation on the part of the employer regarding temporary and lower-paid employment.  This includes the requirement for the employer to maintain a weekly record of the daily starting and ending times, as well as the number of hours worked in a day for such employment.

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