Why do employers pay minimum wages

What to do if the company does not pay the minimum wage?

If the employer does not pay the statutory minimum wage, the employee is in the right, because all employers must comply with this law. If the statutory minimum wage is not paid, the employee should first seek advice as to whether he is really entitled to the minimum wage or whether a transition period or an exception rule may apply in his branch. If he wrongly fails to receive the minimum wage, he can sue his employer. If several employers in a company are affected, each one has to file a lawsuit individually. You can also take action for three years retrospectively. If a violation of the new law is found, the employee can also anonymously report to the illegal employment financial control.

Companies are legally obliged to pay minimum wages

If the minimum wage is not paid, the employer should first be made aware of the new law. The BMAS citizen hotline provides information by telephone from Monday to Thursday from 8 a.m. to 8 p.m. on 030/221911004. Union members have the opportunity to seek advice from their union free of charge; in an emergency, they receive legal protection.

Employers who neglect the minimum wage law are punished with drastic sanctions and additional demands:

➤ Fine of up to 500,000 euros

➤ Exclusion from the award of public contracts for a certain period of time

➤ Employees can take legal action if they have not been paid the full minimum wage up to three years after the wage payment is due

➤ The social security agencies also have additional claims against employers if the employees themselves do not sue for additional payment of the difference to the minimum wage

According to SGB IV § 28, the AG has to pay the so-called total social insurance contribution if additional social security contributions are claimed - i.e. not only the employer's share, but also the employee's share.

Who controls compliance with the Minimum Wage Act?

Compliance with the minimum wage is controlled by the customs administration, as the work is immense, the tax authorities have expanded this area to include 1,600 new customs officers. The controls are carried out armed, the customs officers have the right to enter business premises and property during working hours. Without prior notice, even without specific cause or suspicion, you may have evidence of paid wages, employment contracts, registration documents and documents showing the duration, scope and type of employment relationships, and, if necessary, obtain income. The controls not only relate to compliance with the minimum wage, the proper payment of social security contributions is also checked. The controls can quickly lead to criminal investigations in which the customs officers are allowed to search the business premises and confiscate files - there is a risk of default, even without a judicial decision. If the minimum wage law is violated, high fines threaten.

Further information on the topic:

Which professions benefit from the new minimum wage law?

How employers trick with the minimum wage

Which industries are affected by the minimum wage?

How is it checked that the companies really pay the minimum wage?