Leading decisions concerning minimum wage


The German Federal Labour Court has given two leading decisions concerning the minimum wage (ruling of 25.05.2016, file number 5 AZR 135/16 and ruling of 29.06.2016, file number 5 AZR 716/15).

The rulings contain two mayor statements: First, the claim for minimum wage has its own basis. Employment contracts are therefore not invalid, if the remuneration agreed upon is below minimum wage. Second, if a gratification is granted (such as a Christmas bonus), it might perhaps count towards the minimum wage if paid pro rata on a monthly basis. Never-theless the individual case must be assessed, especially whether the works council must be involved.

Berlin, 01.07.2016

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Olaf Strack

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