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Employment law – in brief …

Law relating to standard business terms: Need for changes regarding preclusion clauses in standard employment contracts (statutory minimum wage/minimum remuneration pursuant to the Act on the Posting of Workers (AEntG))

25/09/2016

In a current ruling (judgment of 24 August 2016 – 5 AZR 703/15, not yet published), the German Federal Labour Court declared a preclusion period clause invalid because it included a reference to the entitlement to minimum remuneration under the Act on the Posting of Workers (AEntG). It is still open whether the same applies to entitlements to the statutory minimum wage (German Minimum Wage Act (MiLoG)).

If you wish to be on the safe side, you should review your standard employment contracts and make adjustments to the preclusion period were appropriate. More information on this topic can be found in the attached newsletter.

Newsletter
Employment law – in brief: preclusion clauses in standard employment contracts, September 2016
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Authors

Portrait ofNeil Yeats
Neil Yeats
Counsel
Berlin